The concept of wealth management and private banking are similar, which is to manage a client’s finances better. However, wealth management is the most advanced level of financial planning services that manages a vast area than private banking. Private wealth management in Ontario includes a wider range of services and methods to manage the portfolio of high-profile clients.
Both wealth management and private banking take care of their client’s finances. Here are their key differences.
Private Banking
Financial management services are geared toward high-net-worth individuals who consider a client’s financial circumstances to provide investment advice. Each client can benefit from solutions made especially for them. Clients are able to enjoy a more personal level of service. Private banking can be considered a form of wealth management.
One of the biggest perks enjoyed by clients who decide to go for private banking is the focused attention they receive. A team of experts understanding your financial standing welcomes you. Typical processes such as depositing or ordering checks and initiating wire transfers are made much more straightforward.
Clients will also have access to a wide range of experts like tax attorneys and estate advisors to ensure they make the best possible decision to improve their financial standing.
Wealth Management
Private wealth management in Ontario is the highest level of service geared toward clients’ financial planning. Private wealth management companies in Toronto offer access to experts and services such as:
- Trust services
- Insurance specialists
- Tax specialists
- Estate planning specialists
It extensively studies a high-profile client’s entire portfolio, including their risk tolerance, and devises investment strategies that would have the best returns. Investments are planned and executed on behalf of clients and done so in various stocks and funds.
Along with investing, private wealth management also offers overall portfolio management services, including financial services regarding the client’s personal financing choices.
The Divide Between Wealth Management and Private Banking
Private banking is not entirely separate from wealth management, but it does hold some key differences.
One of these differences is that private banking need not necessarily include services that help their clients’ investments. Clients may be advised on the best investing strategies, but the personal bank staff will not invest on behalf of a client.
On the other hand, wealth management services go beyond the services of private banking by providing financial advice that will improve their client’s portfolios and actively helping their clients make the best investing choices.
Both wealth management firms and private banks require a minimum balance to be present, but this amount varies. Generally, private banking requires a minimum balance ranging from nothing to $1 million to benefit from a wide variety of their services. Although private banks usually have a minimum balance requirement, wealth management firms rely more on fee models. A set percentage of the assets that are being managed is charged.
Asset or wealth management is crucial to ensure your long-term goals are met. To read more about the private wealth management services offered by Enriched Investing Incorporated that can help you achieve this, visit us here!