Globally, there are thousands of private banks, which collectively oversee trillions of dollars in assets under management (AUM) for clients. From large to small, international to regional and boutique, there is a wealth of options to choose from.
Indeed, private banks vary widely in terms of the volume of their AUM – from small boutique firms with less than US$100 billion in AUM to international private banking giants such as UBS and Bank of America, which boasted AUM of US$2.06 trillion and US$1.97 trillion respectively in 2017.
Whether you opt to go with a smaller or bigger firm depends on your individual needs as a client.
Bigger private banks often can provide a wider range of services and access to a large team of in-house experts who have highly specialized knowledge across various areas. These banks also typically have the budget to invest more in offerings for their clients.
A smaller private bank, however, offers several advantages. The most obvious is that at a smaller private bank you stand a much better chance of getting individual attention and personalized service. Also, the bank will likely go out of its way to retain your business, making an extra effort to meet your requirements and provide bespoke solutions for your financial needs.
Whether you decide to sign up with a small boutique private bank or an established global brand, you should make sure that the institution you choose has a proven track record and sterling reputation in the industry. When you first meet with representatives of the private banks you are considering, you should ask them to provide you with data on their institution’s recent financial performance.