For the crazy rich, all that glittersĀ is gold. “Private banking” brands the elite and nothing screams affluence more than having an account with UBS.Ā Why do we need to know all of this? I guess we don’t,Ā but sometimes we can’t help but to be a bit kaypoh. Plus you never know, you may strike 4D one day.
The Singaporean median household income is $8,846. 12.4% of these are households who earn $20,000 and above a month. That’s a sizeable percentageĀ considering our 5.61 Million large population today. To qualify for private priority banking and not just priority banking, it takes at least $1 Million AUM.
What Is AUM?
Assets Under Management (AUM) is the total value of assets you have with a bank or investment company. This may includeĀ bank deposits, money in your savings account, personal investments, mutual funds, fixed deposits and so on. The higher the AUM, the more wealthy you are.Ā
Who is an example of a person with $5 Million AUM? These people are typically business Owners, MNCs Executives, Investors, Inheritors of large fortune, and so on. They need to have $5 Million in cash and investments.
Private Banking Is Not Priority Banking
Take for example DBS treasures and DBS Private Banking. To be a priority banking client at DBS Treasures, you have to hit a minimum requirement of $350,000 AUM. However, to be a DBS Treasures Private Banking Client, you have to hit a minimum sum of about $3 Million.
Priority banking is categorised under retail banking. It provides you with advisory services, VIP access to certain places, travel privileges and so on.
However, private banking provides a highly personalized level of banking services to High Net Worth Individuals. At this level, it provides networking opportunities with other global private clients, discretionary portfolio management, personalised wealth management and so on.
For a reference, this is the kind of money you need to have
Private Banking Comparison: High Net Worth
| Bank | Account | Min. Requirement |
|---|---|---|
| DBS | Treasures Private Banking | $5 Million |
| UOB | Private Banking | $2-3 Million |
| OCBC | Premier Private Client | $1 Million Accredited Investor |
| Citi Bank | Citigold Private Client | $1 Million |
| HSBC | HSBC Private Bank | $5 Million |
| Standard Chartered | Priority Private | $1.5 Million |
Private Banking Comparison: Ultra High Net Worth
| Bank | Account | Min. Requirement (Investable assets) |
|---|---|---|
| UBS | Consumer Private Banking | $25 Million |
| Credit Suisse | Consumer Private Banking | $2 Million (But average is $50 Million) |
| Julius Baer | Consumer Private Banking | $5 Million |
| JP Morgan | Consumer Investment Banking | $10 Million |
*Do note that the individual banks above may cater to both high net worth and ultra-high net worth clients
Benefits Of Luxury Banking
- Wealth manager to manage your assets
- Investment advice from senior analysts
- Preferential interest rates
- The network to other rich people like you, globally
- Royal treatment and perks. Take it as you’re paying for first class service.
- Limousine services to the airport, free mooncakes, VIP lounge, birthday presents from the bank
Further Details On Private Banks
DBS PrivateĀ Banking
- Network that connects you to partners and opportunities worldwide
- DBS Private Bank Advisory Process that actively watches and reviews your profile
- In-depth analyses of markets, industries and more, with more than 700 companies tracked ā broadest coverage in Asia
- DBS iWealth wealth management platform
UOB Private Banking
- Medical concierge
- “One bank” approach taps into the strengths across UOB’s retail and commercial banking arms to meet your personal and corporate wealth needs
- Travel concierge and cashback with hotels, cruises and other luxury packages
Standard Chartered Priority Private
- Unlimited priority pass access – Complimentary access to over 1000 airport lounges
- APEC card application
- Airport Limousine Transfers
OCBC Private Banking
- Discuss investment trends regularly with OCBC Wealth Panel
- Bespoke wealth solutions include unlisted investment opportunities, portfolio financing and legacy planning
HSBC Private Bank
- Succession planning for family wealth and wealth distribution
- Expertise in trading of precious metals.Ā HSBC is the worldās largest trader and custodian of gold, precious metals and base metals.
- Specialised analysis of hedge funds and mutual funds
Citigold Private Client
- Global service:Ā You can have an account in each region of the world where you may have a business, family, or personal interests, and receive dedicated service from a local private banking team.
- offer management strategies
UBS, Credit Suisse, Julius Baer, JP Morgan Investment Banking
- All of the above, but the top tier
- Think Gucci versus Louis Vuitton. In the private banking world, the banks in this category would be Louis Vuitton, and the ones above are Gucci — There’s nothing super different but we all know which is more atas!
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