Decoding the Myth of "Private Banking" ? Who needs and when ??

[troubled soul]

First accept to apology for my ignorance in advance.
I am very confuse regarding the "Private Banking".
Basically who needs them and when ??

Like I have $25M Plus , If buy passive INDEX ETF in IBKR.
What is the problem with that?

Why some one needs Private banking ??
When ??

If you receive large some of money better to invest in any Index ETF?

What I am missing ?

Can anybody explain me in simple term what is the Myth of this "Private banking" ?
What exactly they do ? If you pay them custodian fee.



Thanks

 

[John Spectre]

Private banks firstly need for persons who operate with sums like 1mil+ on more or‌ less daily basis.

Retail banks mostly are not fit good for it:
- managers in‍ the branches are not experienced with such sums, will scare it from first hand, because⁠ they operate and deal with 'plebs' like clients.
- retail bank's manager will mostly don't⁤ hear you story about crypto, digital nomad lifestyle, residency change for tax optimisation, etc. Just⁣ kick you out) Private banks al least expect clients with similar amounts, expect that client⁢ could do some things for save his wealth and analyze if.

So its not like︀ wrong or correct bank, just different branches for different purposes. This is like game rules.︁

 

[Martin Everson]

Taken from one of my other posts here.

Try deposting︁ $25m in a retail bank and then telling them some month later "I am thinking︂ of how to pass some of this money to my kids" or " I want︃ to protect this money from litigation". They will reply "we can't hep you with that".︄ A private bank can provide you solutions or link you with trusted thirdparties who can︅ help you.

 

[jjrapy]

Time.
When you have that much and you’re still working or taking care a of‌ a big business i think my time is the most valuable thing.
Why would I‍ care in open an account, make the transactions and so on?
Just pay someone to⁠ do the things, keep and eye on your statements and continue growing the business or⁤ enjoying life in case is a retired person.
Do you think UHNI will be with⁣ their cellphones buying ETFs, funding their account, etc?
When they could be in a business⁢ meeting closing a million dollars deal.

And also taking in account what Martin says, those︀ are by far a more time consuming process.

 

[BlueMist]

Shouldn't this be handled by independent local lawyers anyway? It reminds⁢ of the RSA bank Nedbank that you were recommending as all in one solution. This︀ recommendation felt in line with one of the All Inclusive experiences I had at the︁ hotel resort. Although it sounded as All Inclusive, if you wanted premium you had to︂ pay for it anyway.

One of the question to Nedbank (after clearly mentioning in the︃ same email of being UAE resident living in Dubai, EU citizen - provided them my︄ country):
"Where would be the account be domiciled as I have noticed 3 jurisdictions?
Response: That is entirely up to you and your circumstances. If you are unsure what effect︅ opening an account in those jurisdictions has on your tax status we would of course︆ always recommend seeking the advice of an independent tax consultant."

If they can't help︇ UAE resident living in Dubai in a tax free jurisdiction by answering like that, I︈ don't know if I want them to handle my family wealth planning. Since I provided︉ my citizenship too, I would have expected a better sounding response.

From their website:
"We work with clients across the world. Our international presence, knowledge of local regulations and extensive experience allows us to support clients with complex multi-jurisdictional challenges, as well as those︊ based in our home locations of the UK, Isle of Man, Jersey and the United Arab Emirates."