The Need for Private Banking Explained

Most banks today offer private banking solutions to their high net worth clients, and not without good reason. Richard Cayne at Meyer Asset Management Ltd Tokyo explains that it has become a major focus of banks to cater to the needs of such high profile individuals separately, since their requirements and expectations are such that they cannot be covered under the regular, simpler banking solutions. Richard Cayne at Meyer Asset Management Ltd Tokyo mentions that individuals with more than US$250,000 as liquid assets are usually offered private banking solutions, while those with US$5000,000 and more are most definitely covered under the special scheme and offered private banking solutions.

The logic behind treating high net worth individuals under the special scheme of private banking is quite simply a detailed and diverse portfolio. According to Richard Cayne at Meyer Asset Management Ltd Tokyo, such individuals require solutions that not only help protect and manage their wealth, but also grow the same efficiently. Assets such as real estate holdings, bond investments, mutual funds, etc. usually make up the portfolio of high profile individuals. Therefore, tailor-made schemes are required to manage and grow the immense wealth of such individuals, which cannot always be covered under the general schemes and services of the bank.

Richard Cayne at Meyer Asset Management Ltd Tokyo explains that along with private banking solutions, such individuals are also given dedicated account managers or financial consultants, who not only try to understand their clients’ specific expectations, but also make sure to offer them solutions within the bank’s framework. These account managers are specialists in the field of finance and not only have in-depth knowledge regarding various investment vehicles, but also economies. They not only keep an eye on the wealth entrusted to them, but also world markets, so that they can warn their clients when a particular vehicle is expected to stop being profitable.

Richard Cayne at Meyer Asset Management Ltd Tokyo says that such specialized attention is necessary due to the sheer volume of demand. Most of these high net worth individuals already have an idea of the kind of portfolio they would like to build, and simply utilize the private banking services to manage or administer the various vehicles. Richard Cayne at Meyer Asset Management Ltd Tokyo, private banking officers or financial consultants work in collaboration with high profile investors, giving them a choice of products as well as currencies to park their wealth in. Richard Cayne at Meyer Asset Management Ltd Tokyo mentions that the size of investments, higher expectations, better risk appetite and profit making opportunities for the bank as well as high net worth individuals is what has made private banking a popular offering.