Private banking refers to banking services for very wealthy individuals. Beyond that general description, there is no more precise definition.
The amount of financial wealth that qualifies a client for private banking services varies among the firms offering them. Minimums of $5 million, $10 million, $25 million, or even more may be required. On the other hand, some providers may set the bar lower, such as at $1 million.
The exact nature of private banking services also is imprecise. At a minimum, it usually involves serving clients through individuals called private bankers, who are usually in locations apart from the public banking floors. Each private banker has expertise in the needs of wealthy clients, and manages the bank’s relationship with a certain number of them. In short, private banking clients are not served in the same fashion as less wealthy clients, waiting in teller lines and the like.
There are standalone private banks that only accept wealthy clients, and there are private banking divisions within some mass-market banks.
