What is a Private Banker and Do I Need One?

By John Ventura | Published: November 2021

Having a go-to person in life is always a plus. In this fast-paced world we live in, where interactions happen via online chats or through automated voice recordings, it is still important to forge personal relationships. While many banks offer personal service, there are also others who act as dedicated, hands on concierge bankers. If you’ve never worked with a private banker, you might not be aware of what they can offer. Here is what you need to know about private bankers and the benefits of their services.

What is Private Banking?
Private banks provide solutions for often complex financial and banking needs of wealthy individuals and families. Most private banks require a certain dollar amount of investable assets and can vary from bank to bank, typically starting at around $250,000.

Wealth management firms and private banks usually surround their clients with a team of seasoned professionals led by a private banker to provide access and expertise on different financial subjects.

Separate from their retail counterpart, private banks and wealth management firms usually require a minimum balance for their relationship. This may include deposits, investments, or various types of credit. With this relationship, you also tend to get access to services and products not offered by typical retail banks. These may include enhanced deposit and cash management options, sophisticated lending solutions, specialized lending, and foreign exchange assistance.

Private Banking Services
Some services private banks can provide are:

• Special rates and pricing on deposit accounts. Clients may also enjoy lower or waived fees on their accounts, and they may receive special pricing on loans and mortgages.
• General financial planning. Private bankers can look at a client's entire financial picture and provide advice on how to achieve their short- and long-term financial goals, from saving for education and planning for retirement to effectively managing taxes and insurance.
• Investment advice and wealth management. Private bankers often lead a team of financial planners and investment advisors who give their clients advice on investing, including everything from tax-loss harvesting, asset allocation, and risk mitigation.
• Lending. Clients looking to purchase a home, an investment property or a boat can utilize a private banker to secure financing. Private bankers excel at structuring the best products with the best pricing to fulfill a client’s needs.
• Estate planning. Reviewing your plan at regular intervals in addition to major life events will help ensure that your legacy, both financial and otherwise, is passed on in accordance with your wishes and that your beneficiaries receive their benefits as smoothly as possible. Private bankers can help coordinate with your outside legal advisors.
• Tax planning. Your private banker may stay on top of important tax laws on your behalf to reduce your tax burden.

Is Private Banking Right for You?
The biggest advantage of private banking is having a dedicated person or a team of individuals who already know your individual and family circumstances. They can make it easier to initiate and process deposits and wires as well as accelerate, streamline, and customize lending solutions.

The private banker is also the quarterback of the team. They connect you with other team members such as a tax attorney or a trust and estate advisor, along with your financial advisor. Having all your trusted advisors working in harmony ensures seamless and positive outcomes for your financial needs.

Business owners also benefit from having their private banking or wealth management relationship with the same institution. This can help secure commercial lending opportunities and aid in business succession planning when their private banking team understands both sides of the house.

At the end of the day, having a dedicated private banker whose goal is to understand your short-term financial needs and long-term financial goals will deliver you and your family financial peace of mind.

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About the Author – John Ventura
John Ventura is a Senior Vice President and Senior Private Banking Relationship Manager. Ventura has more than 15 years of experience in private banking, including assisting clients with financial planning, portfolio management, asset allocation, trust administration and estate settlement, hedge funds, private equity and real estate, risk mitigation, and complex tax and legal issues. John can be reached at jventura@wsfsbank.com.