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What is the definition of "private banking"?

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Quick Answer

Investopedia lists private banking as a service offered by many financial institutions that gives high net worth individuals personalized banking and investment options along with personal contacts at the bank who handle their accounts. Private banking is generally only available to clients who are focused on building wealth and is not an available option to the average banking client.

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Full Answer

When Chase has a private banking client, that client has a two-person team that handles accounts, one for checking and savings and another for investments. When the client wants to invest in real estate, apply for a loan, transfer money between checking and savings accounts or discuss diversifying a portfolio, the client calls the banking team. The bankers prioritize the client's needs over those of other account holders and handles all requests personally. Private banking clients are often offered services that are not available to other clients.

At Wells Fargo, private banking clients can receive loans for yachts, real estate investments and aircrafts and receive foreign transaction services. Participating in private banking services also gives clients access to a banking manager who closely manages the client's entire financial situation and looks for ways to help increase the client's net worth through investments and asset protection.

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