Is Geneva Private Banking Right for You?
Private banking had its origins in Switzerland, first in St. Gallen in the mid-18th century, and later in the 18th century in Geneva. Private banking provides personalized customer service rendered on a one-to-one basis rather than retail banking, which relies on bank advisers.
Geneva private banking is considered a traditionally highly effective form of wealth management. No longer only relegated to the very wealthy, private banking services can be accessed by those with the equivalent of 250,000 Swiss Francs.
People with higher net worth often need wealth management that takes in not only savings and management, but inheritance and tax management as well, and that is where private banking shines.
Private banking services are rendered differently than retail banking. With private banking, clients may pay fees based on number of transactions, based on the performance of their portfolio, or based on a percentage of total annual amount invested. As just one example, la Bank SYZ charges remuneration based on the results achieved by the investments.
For those who are considering using private banking services, it pays to look for independence and impartiality. Banks that avoid investment activity that could cause conflicts of interest are more likely to have client wealth management as their primary goal.
Private banks in Geneva are subject to one of the world’s most robust regulatory frameworks, and the ones that publish their accounting figures and are open to those who want to know about their financial soundness are less likely to lead investors into unsound investments.
Look for private banks that have been given the status of having “low credit risk” by credit ratings agencies like Moody’s. Banque SYZ & Co., for example has been given an A3 (low credit risk) rating by Moody’s. And, like with your other service providers, look for those with good customer service reputations, where you know that you as a person matter more than technology. The ideal private banking arrangement builds up a relationship based on mutual trust and communication.
Finding a private bank that is run by the founders is probably easier in Geneva than anywhere else. Bank managers involved in the daily running of a private bank have direct contact with clients, and in many cases are entrepreneurs themselves, and have a keen understanding of an investor’s concerns and needs.
But of course, personal service doesn’t mean that much if the returns aren’t adequate. High returns should be the number one goal of your private bank, taking into account your personal investment objectives and your appetite for risk. Private banks must keep right on top of the latest developments in financial markets and focus on capital preservation and investment returns. When the bank and investors have shared interests, this is more likely.
There are different theories as to whether private banking services should extend beyond portfolio management and into areas like tax advice and inheritance planning. Some of the best private banks focus on portfolio management, but call in external specialists when specialized services (like tax or inheritance planning) is called for by the customer. That way the bank can concentrate its discipline on rigorous investing practices and control of portfolio viability.
Geneva Private banking will make the ideal banking solution for those with large investments, Banque Syz & CO is a well known Private banking group this is why you can trust them if you decide to open an account with them. Get more information and tips on Banque Syz today!