In the world of finance, private banking and wealth management services overlap.
However, there are instinct differences between the two that will impact your financial performance and future.
Understanding each one and what they offer will affect your financial decisions.
Key Details About Private Banking
In general terms, private banking involves financial institutions, namely banks, that provide financial management services to high-end income earners and connect clients with the bank’s various product offerings and charge clients a fee to do so. In many cases, banks will benchmark at least six figures to be entitled to these services.
As for the approach itself, private banking involves the bank introducing clients to different bank agents depending on their needs, such as investment advisors providing investment-based advice for clients. These clients will also receive access to a suite of their products and services directly from the bank.
However, the critical issue with private banking is that the advice is not “independent”. As private banking is a part of the bank itself, the services have to comply with the banking regulations and procedure, and significantly, clients may be sold products that are closely aligned to the bank.
In a nutshell:
- Private banking is for high-income earners looking to have easier access to bank products and services and willing to pay a fee for that access.
- These clients get access to services and advice that aims to address each client’s financial circumstances.
- Lack of independence means clients may be sold affiliated products or stocks.
Key Details About Wealth Management in Calgary
Wealth management in Calgary can be an independent service where wealth managers or financial advisors help clients manage all aspects of their financial life so they can achieve their goals and live the life they want to live. This includes preserving and growing their wealth. These professional financial advisors focus on a client’s complete financial picture, including financial and risk management, retirement planning, tax saving, investment advisory services, and estate planning.
In general terms, wealth management addresses the client’s overall financial health and, most importantly, helps them achieve their goals.
Significantly, wealth management is a more personalized and specialized financial advisory service, based on each client’s financial situation, goals, and long-term objectives.
The most crucial factor is that wealth-management-backed Calgary financial advisors are independent of large banking and financial institutions. Clients get unbiased advice on services and products that benefit them the most, compared to private banking, which often sells bank-backed products.
In a nutshell:
- Wealth management is the process in which clients are provided with holistic financial advice to help them achieve their goals while preserving and growing their wealth
- It is a highly personalized service that focuses on the client’s needs, goals, and challenges
- Although available for high-income earners, it can be obtained by medium-income earners
- As an independent source, they offer clients unbiased advice and solutions
Overall Takeaways
The primary difference between private banking and independent wealth management is the independence of the latter.
Your needs change, but financial advisors didn’t. We did. At MRG Wealth Management, our unique approach to wealth management in Calgary can help you achieve your financial and life-long goals. Our financial advisors in Calgary will give you the confidence and clarity to make decisions with your money, so you can get from where you are to where you want to be. Our integrated financial management system, simplified process and exclusive strategies can help secure your future. Live the life you want with MRG Wealth Management.
If you have questions about financial planning in Calgary and wealth management in Calgary or would like to explore your options, connect with us to speak with a financial advisor in Calgary and get the answers you need to achieve your goals.