Michael Vlahovic, Head Of Private Banking at EFG Private Bank, tells Tatler, ‘Private banking offers an exclusive level of service, tailored to the unique needs of high-net-worth individuals. By providing a holistic approach to wealth management that covers real estate lending, deposit taking as well as investment management, we work closely with our clients to understand their goals, aspirations, as well as potential challenges.' Vlahovic adds, ‘Our expertise allows us to offer strategic solutions to complex financial questions, ensuring clients’ wealth is well managed and maintained for future generations. Helping private clients build sustainable wealth is a real responsibility. It requires private banks to have a vast networkand expertise, offering unique investment opportunities, innovative strategies, and global insights, all designed to safeguard and grow their clients’ financial legacy.’
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As well as specialised expertise around high-net-worths and the challenges that come with this, many private banks also offer the sort of rates that mainstream banks cannot compete with. ‘The biggest difference between private banking and retail banking is the personalised service and sophisticated financial solutions offered. Private banks provide access to exclusive investment opportunities, such as private equity, venture capital, and hedge funds, which retail banks typically do not offer. Private banks may also offer preferential rates on loans and deposits,’ says Tennant.
Naturally, these perks come at a cost and most private banks charge an ongoing monthly fee which is certainly higher than someone may pay for a premium account in a retail bank. ‘Clients need to be aware of all fees and costs involved, some of which may not be transparent,’ warns Tennant. She adds, ‘Clients need to trust that their relationship manager understands their financial goals and is aligned with their objectives. We like to ensure that banks have a full range of products and not just their own, to ensure that they can offer the solutions most suited to our client.’
For more gold-standard guidance on private banking, wealth management, property and tax and trust, visit the Tatler High Net Worth Address Book.
