Banks focus on wealthy private individuals through private banking. They would like to manage the assets of these people, because they can then invest or lend them and thus earn money from them. That is why they offer wealthy private individuals good service, such as a permanent contact person and fast handling of cases. The largest banks manage assets of more than a thousand billion euros. Read all about it in this article. Private banking is a term that refers to the financial services that banks provide to wealthy private individuals. The eligibility limit for this is approximately one million in disposable income, although at some banks this limit is lower. The term private refers to the personal way in which banks interact with their customers. They often have their own contact persons and have priority in many matters. Banks obviously do this because these people have a lot of money and banks benefit from having them in their customer portfolio. Sometimes additional costs are charged for the service, but often a significant part is included in the free service. The term for banking for the masses is retail banking.
is the term for the financial services provided by banks to wealthy individuals. To qualify for private banking, a customer must have approximately one million euros freely available, although some banks have lowered this limit. The term private refers to the personal approach that comes with private banking, as opposed to the mass market of ordinary consumer banking (retail banking). People are also helped there, but the service is simply a bit less good.
Largest private banks
In 2006, Swiss UBS was the largest private bank in the world measured by assets under management. At number two was Citigroup, followed closely by Merill Lynch. Together, these banks managed more than a thousand billion dollars in private assets. In the Netherlands, there are mainly smaller exclusive banks that have focused on private banking. These are banks such as Van Landschot Bankiers, Schretlen & Co and Gilissen Bankiers. Large banks have also discovered the private banking market. For example, ING Bank and ABN Amro have separate departments that focus on this group.
Private banking at ING
ING wants to sell its private bank, with the exception of the Dutch part of the bank. ING has assets of approximately 60 billion euros under its management. The bank offers services to wealthy individuals, especially entrepreneurs. ING Private Banking is currently active in Belgium, Switzerland, Luxembourg, Hong Kong, Singapore and the Philippines. She wants to divest her bank because she wants to focus on her core activities in the Netherlands. The Private banking part of the bank generated a profit of 111 million euros in 2008. A year before that was 200 million euros.