Wealth Management Strategies with Private Banking12 min read

Wealth Management Strategies with Private Banking12 min read

Private banking and wealth management go hand in hand when developing long-term financial strategies. 

In this article, we’ll discuss how to invest with private banking, what private banking services include in online banking, who can have a private bank account, and how to develop wealth management strategies with private banking assistance.

How to Invest with Private Banking?

Investing your assets with help from a private bank can offer some advantages over going it alone. Private banks like The Kingdom Bank provide their high-net-worth clients with dedicated wealth managers who have expertise in analyzing financial markets and choosing suitable investment vehicles based on a client’s risk tolerance, goals, and timeline.

Wealth managers typically have access to exclusive investment opportunities not available to regular retail investors. This could include pre-IPO opportunities in promising startups, direct investments in private companies, and co-investments alongside institutional clients. 

Wealth managers also negotiate lower fees on investment products compared to what an individual investor would pay.

Another benefit of working with private banking is their breadth of knowledge across different asset classes. 

While individual investors may focus only on stocks, bonds, and ETFs that they can easily purchase through an online brokerage, wealth managers have familiarity with alternative investments like hedge funds, private equity, and venture capital that require large minimum investments. They can help diversify a portfolio to include some of these less correlated assets to reduce overall risk.

Private banks also provide portfolio monitoring and rebalancing services. Markets constantly change, and it’s important to adjust an investment mix over time to maintain the desired risk-return profile. 

Wealth managers ensure clients’ portfolios stay true to their objectives through periodic reviews, tax-efficient rebalancing, and tactical shifts in response to market conditions.

What Does Private Banking Service Include in Online Banking?

Online private banking platforms like The Kingdom Bank offer several advantages over traditional brick-and-mortar private banks:

• No minimum balance requirement: Many private banks have stringent asset thresholds to qualify for private banking services. Online platforms remove these hurdles to attract a broader clientele.
• Low or no fees: With lower infrastructure and overhead costs compared to physical branches, online private banks typically charge lower or no account maintenance and transaction fees.
• Global accessibility: Clients can access their accounts, transfer funds, pay bills, and trade securities from anywhere through an internet or mobile banking app. This is highly convenient for globally mobile high-net-worth individuals.
• Robust security: Leading providers employ bank-grade encryption and two-factor authentication to protect logins and financial information. Several also offer offline, “cold storage” vaults to safely hold cryptocurrencies.

Specifically, online private banking services commonly include budgeting and cash flow analysis, online financial planning tools, automated investment portfolios, tax reporting assistance, bill payment facilitation, lending services, trust and estate planning support, account aggregation, and concierge services like luxury travel bookings. 

Many also provide access to dedicated wealth planners over phone, video, or live chat.

Which Users Can Have a Private Bank Account?

Private banking is strictly for high-net-worth individuals and businesses with substantial investable assets. 

Minimum balance criteria vary by bank but usually start from USD 500,000 or equivalent in most currencies. Some key criteria banks use are:

• Net worth: Total assets – liabilities must exceed the minimum amount. Assets include investments, property value but exclude primary residence.
• Investable assets: Liquid funds available for discretionary portfolio management by the bank.
• Regular income: High earners or those with sufficient passive income streams generally qualify.
• Specialized clients: Entrepreneurs, family offices, foundations and other entities with complex financial profiles.
• Residency status: Most banks cater to residents in their country of operation and taxpayers. A few international private banks serve global clients.

Meeting any private bank’s stringent qualifications provides access to the exclusive suite of services. The Kingdom Bank for instance currently requires a minimum balance of CHF 500,000 for its private banking clients globally.

How to Develop Wealth Management Strategies with Private Banking?

Now that we’ve covered some of the advantages of working with a private bank as well as who is eligible, let’s explore exactly how clients can develop robust wealth management strategies in partnership with their private banking team.

Understand Your Goals, Situation and Tolerance for Risk

Having an open dialogue about your assets, cash flow, goals for growth and income over various time horizons, as well future plans like retirement, children’s education or philanthropic goals is crucial. Equally important is frank communication about how much market volatility you’re comfortable with when investing for the long run.

Build a Diversified Portfolio Aligned with Objectives

Professional private bankers can craft highly strategic multi-asset class portfolio solutions tailored to your personalized goals and risk profile. Private banks provide institutional-caliber investing, research and advanced portfolio construction tools to optimize for your long term objectives and peace of mind.

Leverage Alternative Investment Options

Private banks offer unique opportunities many retail investors cannot access, including direct investments in startups, private equity, real estate, hedge funds, structured notes, private debt and more. Alternative assets magnify diversification when prudently incorporated into a strategic portfolio designed with your needs in mind.

Provide Structured Ongoing Guidance

Wealth preservation and growth requires stewardship over many years. Private banking advisors monitor changing markets and life events so your portfolio continues serving your priorities. Quarterly reviews, adjustments to strategy as needed and seamless record keeping ensure accountability to your financial blueprint.

Optimize Taxes, Estate Planning and Insurance

A holistic view of wealth management means synchronizing investments, estate plans, taxes, insurance and more to pass wealth efficiently across generations and minimize burdens on loved ones. Your private bank stands ready with guidance from their network of professionals in these impactful non-investment areas.

Private wealth advising elevates the role of a financial caretaker by addressing goals, legacy and multidimensional needs not otherwise met through self-directed brokerage. The right private bank finds structure and optimizes results through full-service wealth administration.

Private Banking Wealth Management Strategies with The Kingdom Bank

The Kingdom Bank offers rare access to private banking expertise for investors capable of managing six-figure portfolios yet still refining their long term strategies. 

Our digital private banking platform allows clients to benefit from institutional caliber guidance through technology delivering a highly customized experience.

The Kingdom Bank clients can develop private wealth advising strategies with dedicated teams focused solely on their best interests. 

Experienced advisors will consider your distinct resources and life priorities in crafting a roadmap for prudent growth, legacy fulfillment and peace of mind.

Through regular check-ins, performance reviews and advice accounting for both markets and personal milestones, The Kingdom Bank clients gain comfort knowing their long term plan remains optimized. Wealth management strategies accommodate opportunities and challenges alike with flexibility and professional oversight similar to what larger institutions reserve for ultra-wealthy clientele.

The bank’s digital nature means private advising is always at your fingertips through any connected device as part of an advanced yet intimidating portfolio platform. 

Sophisticated portfolio analytics breakdown performance in actionable ways while rebalancing tools stay diligent in ensuring results align with life changes.

By merging tech-forward banking with a personal touch, The Kingdom Bank breaks private wealth management out of an elite class to deliver its benefits through an engaging online experience. 

No matter investment size, the bank establishes a bespoke support system for protecting, expanding and passing on wealth responsibly over generations to come.