Wealth Management Vs Private Banking

What Is Wealth Management?

What Is Private Banking?

What Are the Differences Between Wealth Management and Private Banking?

Both wealth management and private banking offer convenience and opportunities to clients. But to decide which one will be the best-suited option for you as per your goals and requirements, it is significant to know the difference between private banking and wealth management.


Private Banking

Wealth Management

Range of Services

It offers asset management, brokerage, and banking services and also provides some simple tax consulting services.

It offers consulting services in areas like asset structuring, asset allocation, real estate planning, tax planning, family arbitrage, pensions, philanthropy, etc.

Packages vs Tailor-Made

It proposes a one-to-one model that offers existing bank packages for ultra-high-net-worth individuals (UNHWIs) or high-net-worth-individuals (HNWIs).

It emphasises offering the right kind of financial advice and concern to help individuals collect, maintain, reinforce, and transfer wealth.


It tends to present its clients with only the products that the respective bank offers for which they work. Thus there is a limitation to the selection of products.

It involves the presentation of several institutions' products tailored to the client’s needs.

Investment Strategies

When it comes to acting in the clients' best interest, it conveys a generous level of flexibility and reactivity.

It is a considerably slower and heavier process; thus offering less transparency and less independence.

Conflict of Interest

Does not arise at all, as advisors are independent in choosing underlying assets that form their client’s portfolios.

Sometimes arises as their services get influenced by the underlying assets enclosed within the client’s portfolio.

Cost Involved

This is comparatively less cost optimised as the provider and services are limited.

This is more cost optimised from the client’s perspective, as it offers a wide range of services and providers.


As it involves long years of collaboration between the client, their families, and the wealth manager, a trustworthy relationship is built.

As the services involve less knowledge and involvement of clients, the relationship between the manager and the client is not that strong and trustworthy.

Private banking will be a good option for clients who are primarily interested in traditional banking services like deposits and savings. While for those who want to grow their wealth and manage their investments, for them wealth management will be a far better option to go along with.

FAQs about Wealth Management and Private Banking

Is wealth management part of private banking?

Both wealth management and private banking are closely related to each other, but they differ in their services. Wealth management considers the risk tolerance level of their clients and invests assets per their financial goals.

What are the three essential categories of wealth management firms?

There are basically three essential categories of wealth management firms. These include Product Vendors, Customised Traders, and Planner/Coaches.

When should I consider a private bank?

You should consider private banking if you need to deposit a sizable sum of money into a bank account with a low annual percentage return.