What is the difference between private banking and wealth management?

Private banking focuses on the banking relationship — accounts, credit, deposits — alongside investment management. Wealth management is broader, encompassing investment management, financial planning, tax advisory and estate planning, which may or may not be delivered through a bank.

What is a discretionary mandate in private banking?

A discretionary mandate (DPM) is where the private bank manages the client's investment portfolio autonomously within agreed parameters, without needing client approval for individual decisions. It differs from an advisory mandate, where the bank recommends but the client decides.

Glossary · SearchOffshore

What Is Private Banking?

Private banking is a personalised suite of financial services — investment management, estate planning, credit facilities, trust services and lifestyle banking — provided to high-net-worth and ultra-high-net-worth individuals by dedicated private banking divisions of major financial institutions or specialist private banks. It is characterised by a personal relationship manager, bespoke advice and significantly higher minimum asset thresholds than retail banking.

Topic: Banking & Wealth ManagementKey centres: Switzerland, Singapore, Jersey, Luxembourg, DubaiTypical minimum: USD 1m–5m+ depending on institution

Services

What Private Banking Includes

Investment Management

Discretionary portfolio management (DPM) — the bank manages the client's portfolio based on agreed risk parameters. Advisory management — the bank recommends but the client decides. Execution-only — the bank executes client-directed trades.

Estate & Succession Planning

Trust and foundation structuring, will preparation, succession advisory, family governance. Private banks frequently work alongside specialist trust companies to provide integrated wealth structuring alongside banking.

Credit & Lombard Lending

Lending against investment portfolios (Lombard loans), property financing, yacht and aircraft financing, bespoke credit structures. Private banks typically offer preferential credit terms based on the client's overall relationship assets.

Alternative Investments

Access to private equity, hedge funds, private credit, real estate funds and other alternative investments not typically available through retail banking. Many private banks act as placement agents for institutional funds.

Family Office Services

Full consolidated reporting across all assets and entities, family governance support, next-generation education, philanthropy advisory. The largest private banks offer near-full family office capability alongside traditional banking.

Lifestyle Banking

Premium credit cards, travel services, art advisory, concierge banking. More significant at the retail end of private banking; less central to the ultra-high-net-worth proposition.

Minimum Requirements

Private Banking Minimums by Institution Type

Institution Type	Typical AUM Minimum	Examples	Characteristics
Ultra-Private Swiss Banks	CHF 10m–50m+	Pictet, Lombard Odier, Mirabaud	Relationship-driven, multi-generational, discreet, limited products from outside the bank
Major Swiss Private Banks	CHF 1m–5m+	Julius Bär, Vontobel, EFG	Full service, wide investment menu, strong discretionary management
International Investment Banks	USD 5m–25m+	JPMorgan, Goldman Sachs, Morgan Stanley	Access to proprietary deals, IPO allocations, alternative investments, strong credit
Universal Banks (Private Division)	USD 1m–5m+	UBS, Credit Agricole, HSBC, Citi	Broad product range, global footprint, can service multiple jurisdictions
Asian Private Banks	USD 1m–3m+	DBS, OCBC, Bank of Singapore	Strong Asian market access, regional expertise, growing UHNW capability
Boutique Private Banks	USD 500k–2m+	Various Channel Islands, Monaco, Singapore boutiques	More personalised, niche focus, local market expertise

Leading Centres

World Private Banking Centres

Centre	Total Cross-Border AUM	Strengths	Primary Client Regions
Switzerland	CHF 2.3tn+ (cross-border)	Deepest heritage, most sophisticated discretionary management, Swiss franc safe haven	Europe, Middle East, Latin America
Singapore	SGD 5tn+ (total AUM)	Asian market access, family office incentives, MAS regulatory quality	Asia, South Asia, global relocating UHNW
Jersey	£500bn+ AUM	UK/European private banking, trust integration, sterling expertise	UK, Europe, Middle East, Africa
Luxembourg	€5.7tn+ (fund + banking)	EU banking, fund custody, depositary, European distribution	European institutional, non-EU UHNW
Dubai DIFC	Growing rapidly	MENA regional hub, zero tax, GCC client proximity	GCC, MENA, South Asia
Monaco	€110bn+ managed in Monaco	Resident-focused, discreet, European wealth hub	European UHNW residents, French-speaking markets

FAQ

The terms are frequently used interchangeably but there is a distinction. Private banking focuses on the banking relationship — accounts, credit, deposits, payments — alongside investment management. Wealth management is a broader term encompassing investment management, financial planning, tax advisory, estate planning and family office services, which may or may not be delivered through a bank. Many private banks offer wealth management services as part of their private banking proposition. Some wealth managers are not banks — they are independent investment managers who work alongside clients' banking relationships.

A discretionary mandate (DPM — Discretionary Portfolio Management) is an arrangement where the private bank manages the client's investment portfolio autonomously within agreed parameters — the client does not need to approve individual investment decisions. The bank constructs and manages a portfolio according to the client's agreed risk profile, investment objectives and any constraints (such as ESG preferences, sector exclusions, currency preferences). This differs from an advisory mandate, where the bank recommends investments but the client makes the final decision. DPM is the dominant service model at the top Swiss private banks.

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