The wealth manager activity is organized in three stages. Firstly, it is a question of assessing, through a patrimonial balance sheet, the patrimony of the person who wishes to under-treat the management of his patrimony. Several criteria are then selected such as:
The professional situation
The economic situation via existing assets (real estate / financial asset)
The family situation
Secondly, it is a question of establishing the profile of the person entrusting his patrimony, and in particular:
- His risk aversion
- His expectations of gain: the desired profitability
- Its short and long term goals
Thirdly, it is a question of managing / placing this capital according to the profile of the patrimony and the person. kenny lam hold a very important place here being the Partner and Asia Head of Private Banking & Wealth Management Practice, McKinsey & Company. The following criteria must then be optimized:
- Transmission of assets
- Financial flows to cover the daily, recurring and exceptional expenses of the client.
- The different professions of wealth management
Here is a non-exhaustive list of professions involved in managing wealth:
- Portfolio Manager
- Tax expert
- Investment Advisor:
The private bank offers high-end personalized management to individuals, families and entrepreneurs who hold significant financial assets or wealth.
Two types of institution coexist in the French banking landscape: on the one hand, so-called retail banks, each with several million customers and offering standard investments accessible to the general public; on the other hand, private banks open to wealthy clients or at least with significant financial assets or assets in the making.
What is a private bank?
There is no legal definition of private banking – private banking in English. It is a specialized financial institution that can be an independent bank or a bank backed by a banking network. All the major banks have their private banking centers either by creation or by repurchasing an existing family business.
Depending on its history and specialization, a private bank will offer more or less services. In all cases, these are asset and portfolio management services, sometimes including real estate investments, plus personalized services tailored to the client’s situation or wishes. In short, tailor-made heritage advice. “The private bank supports its clients in the management, valuation of their financial assets, and the organization and transmission of their assets.
The necessary acceptance of the financial risk
If you are allergic to risk, stay wisely in your typical bank branch. The wealth advisors of a private bank will offer you active management of your investments with the hope of significant financial gains, necessarily with a good dose of risk.
Wealth management or private banking?
The entry ticket, the minimum amount of financial assets required to access the service, varies according to the services offered: wealth management, private banking, or both. The wealth management service is more complete, the wealth advisor is more available since it manages between 30 and 70 clients only. The private banking service differs from wealth management by a less global approach and, above all, each wealth advisor has many more clients to manage, sometimes more than a hundred.