Private banking is an area of banking in which a private bank renders above-standard banking services, including lending and investment management, to wealthy clients. There is a discreet and prudent relationship between the client and the bank's representative, so the client's needs and preferences are known to the bank. On the basis of this knowledge, the bank devises an individual investment strategy for each client. Solutions tailored to the client's investment profile ensure that his/her wealth is effectively enlarged in the long term.
The clients´ portfolio is made up largely of wealthy individuals who need an advisor and mediator for the management and enlargement of their wealth. The higher the amount of funds invested, the higher rate of return can be achieved.
Private banking services may also be used by corporate entities, e.g. financial institutions in which a large amount of liquid assets is concentrated. To such clients, a private bank offers both basic banking products and comprehensive asset management services.
The principal difference lies in the definition of a private bank. A private bank is an institution specialising in providing of private services to wealthy individuals, rather than for the retail market.
A qualitative difference may also be observed in the area of communication and approach to clients. A private bank uses first and foremost an individual approach to clients, which sometimes grows into partnership and represents one of the basic attributes of private banking. The bank acts in relation to a client as an advisor: it searches for the best investment opportunities and devises investment strategies tailored to the client's needs.
Another asset of a private bank is discretion, which is exercised to the maximum possible extent.
A private banker is a specialised personal advisor representing the bank in relation to clients. A professional with an intimate knowledge of situation in the domestic and global financial markets, as well as of the client's needs, interests and preferences. The main task of a private banker is to make an in-depth analysis and to devise an appropriate investment strategy tailored to the client's needs.
Apart from being discreet and prudent, a private banker is to be permanently at the client's disposal; the place and time of meetings are determined by the client.
Privatbanka is a bank with general banking licence, offering basic banking products, investment products, and so-called additional luxury services. Our mission is to provide comprehensive care for our clients and their assets at the same level as such care is provided by foreign banks.
The relationship between a private bank and a client is based on openness, sincerity and fair play, even in the area of fees and charges. A private bank provides individual services, therefore the fees and charges are also set individually, according to the range of services provided and the total volume of assets under management.