Many people confuse Wealth Management with Private Banking.\nAfter the financial crisis around the world, there was a relation between these\ntwo activities, which has even raised now with the activities of the Family\nOffices.<\/p>\n\n\n\n
However, Moshe Strugano (Attorney – Strugano & Co.)\nshares some key differences between Private Banking and Asset Management here:<\/p>\n\n\n\n
Selection of\nservices<\/strong><\/p>\n\n\n\n Even though they have core-business asset management,\nhowever, Private Banking provides banking services, wealth management, and\nbrokerage\/tax consulting services. The Asset Manager offers consulting services\nto different sectors, for instance, family arbitrage, real estate, asset\nallocation\/structuring, tax planning, pensions, etc.<\/p>\n\n\n\n Difference in\nApproach<\/strong><\/p>\n\n\n\n Private Banking works on the one-to-one model, accessible\nbank packages for high-net-worth customers. The Asset Manager offers higher\nimportance to financial advice and concern in the collection, upholding,\nprotection, reinforcement, and transfer of wealth. They draw up a financial\nplan with the client that meets the necessity of their family and execute them\nproperly.<\/p>\n\n\n\n One Choice vs.\nMultiple Choices<\/strong><\/p>\n\n\n\n Private Banking offers only the products for which they\nwork. While being an independent firm, Asset Manager, can employ a customized\nservice and offer the products of various institutions, helping the client to\npick the ones that suit them best.<\/p>\n\n\n\n Investment\nStrategy<\/strong><\/p>\n\n\n\n Asset Management has an advantage of flexibility and\nreactivity to act only for the benefit of their customers since they are also\nindependent in the selection of the fundamental assets, which generally form\nthe portfolio of the client. On the contrary, Private Banking offers little\nslow and heavy processes, not completely independent and transparent i.e.\nfundamental assets selection for the portfolios, sometimes creates interest\nconflict.<\/p>\n\n\n\n Relationship\nBuilding<\/strong><\/p>\n\n\n\n In Asset Management, the whole thing started by realizing\nthe truth and concerns of the customers, and then plan and implement their\nstrategies too attain their goals \u2013 always aimed at guaranteeing a secure and\npassive life for him and his family. During the progression, the customer is\nquestioned and imitates on susceptible concerns that often go unnoticed. In\nthis manner, a trusting bond is made for long years of collaboration between\nthe Asset Manager, the client, and their family. While in Private Banking, the\nservices offered need less time, less participation and skills of the client,\nsince everything is offered in \u201cpackages\u201d which have to be adapted to the\ngreater or lesser risk appetite and the number of the client\u2019s assets.<\/p>\n\n\n\n Difference in\nCosts<\/strong><\/p>\n\n\n\n In Asset Management the customers can optimize the costs as\nthey have a wide range of services and providers such as banks, insurance\ncompanies, etc. without going to meet with any entities. It also advantages\nfrom the consulting power of the asset manager together that being an\nindividual customer does not have.<\/p>\n\n\n\n Even though the starting point of both the activities are\ncommon, however, the thing that distinguishes the most and which is transversal\nto the facts mentioned above is certainly the independence in the services\noffered by the Asset Manager. In the future, we have to see how both the activities\nwill position themselves according to the main challenge going on in the\nfinancial sector.<\/p>\n","protected":false},"excerpt":{"rendered":" Many people confuse Wealth Management with Private Banking. After the financial crisis around the world, there was a relation between these two activities, which has even raised now with the activities of the Family Offices. However, Moshe Strugano (Attorney – Strugano & Co.) shares some key differences between Private Banking and Asset Management here: Selection… Continue reading Moshe Strugano Share Key Differences Between Private Banking and Asset Management<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/posts\/391"}],"collection":[{"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/comments?post=391"}],"version-history":[{"count":1,"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/posts\/391\/revisions"}],"predecessor-version":[{"id":403,"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/posts\/391\/revisions\/403"}],"wp:attachment":[{"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/media?parent=391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/categories?post=391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thinkfinanceinc.com\/wp-json\/wp\/v2\/tags?post=391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}