I’m trying to draw in information and opinions from other threads into one.
Having used various private banks and continuing to do so, such as Coutts, HSBC and Arbuthnot.
I am trying to gauge peoples opinions as to who offers the best banking options and why certain people hold certain investments with one bank opposed to another.
Most private banks savings accounts are not great, unless your private banker allows you to negotiate rates. Borrowing facilities however are tailored and much more favourable than retail banks.
Does anyone hold private banking overseas?
I have HSBC Private Banking in Monaco (for new applicants this is Switzerland) and Hong Kong for example.
Share your thoughts and opinions below. Let’s get a discussion going.
The main thing with the private banks is borrowing facilities.
For example when I wanted an overdraft increase, it was done online. I telephoned to schedule an meeting and met my private banking manager who looked at my existing borrowing, assets, cash balances etc and our relationship and approved the application.
It’s more on a case by case basis, as opposed to a computer determine if you can financially afford it and what your financial risk is.
But surely if you have access to private banking your financial risk is low. You are very unlikely to have a negative credit report so an automated online process makes far more sense.
If anything, it’s the poor credit report folk who could do with a dose of personalised lending. You could default at 18 and go on to earn £50k a year by 21 but still have a bad credit rating for that one default until you’re 24. They absolutely are more in need of a meeting with financial information to get lending facilities.
As my law firms accounts are held with a private bank so borrowing for short term cash flow is useful.
I was able to be eligible for Coutts amongst others, I still have a sizeable overdraft with them. If a bank will offer me something I’ll take it, why not.
It’s useful for bespoke and specialist lending for example buying properties overseas, funding purchases of classic cars, boats etc.
Most normal bank loans are capped at £25K sometimes £50K.
Not my opinion but, unfortunately a bank will see them as not making the bank enough money. Banks like to keep certain clients happy for obvious reasons.
HSBC hasn’t had a license in Monaco for about a decade, and any local presence has long been liquidated - are you sure you are a client?
I hate to be the one to call it out, but some of this guy’s stories don’t add up.
You do from time to time. Effective capital deployment can make or break the return. Also I think you underestimated how cheap lomabrd loans can be - 70bps + SOFR is my norm for general facilities and I’ve seen even cheaper rates if it was used for trading.
Not quite - most of them will not report to your credit report at all (even if they are UK based). Nonetheless it shouldn’t have any adverse information. You would get turn down by high street lenders a lot since the cost of KYC/validating income in quite a bit higher.
I find it surprising that you focus on facility size rather than rates.
They still have models just not the ones they use for retail clients.
Panama tends to be blacklisted from everything (for quite obvious reasons: ) so we are used to living with our own homegrown alternatives. Although not at European/World standards of Private Banking, Panamanian banks also offer Private Banking (which most humans would be able to afford too).
It seems to be more tailored towards lending plus the ability to invest in the local and international markets. Some even follow the HSBC’s “Premier in one country, Premier in all” if they are in multiple countries, even though it’s only in Latin American countries.
To qualify for Private Banking in Panama some banks require $50k in deposits and others $100k.
I enjoy this thread. The rich and famous are usually very secretive, and little is actually known about their day-to-day finance, eg borrowing 50k on an overdraft, borrowing a couple millions to buy some prime property on a whim, dodging wealth tax in Switzerland, etc… So it’s nice to read about an actual experience, provided the OP is being truthful in his comments.
OP: does HSBC still have good reputation in Europe as (high end) private bank ? In Asia maybe (HSBC Jade?), but I’d have thought in Europe UBS WM, Lombard Odier, Rothschild, JPM WM, Goldman Sachs Private WM, etc… are considered better today ?
Slight typing error there, should read as had an account based in Monaco, but your right these were transferred to Switzerland after HSBC decided to leave. I can’t even remember when they left.
Not sure why they scaled down their operations there.
The term ‘private banking’ is kinda weird when you think about it. It’s not as if the alternative is a ‘state bank’ is it? (at least in this country)
Also, wikipedia tells me a private bank is ‘owned by an individual or the general partners […] not incorporated’, yet people are talking about HSBC (which is definitely incorporated - it’s in the name!). What does ‘private banking’ actually mean these days?
The fraud works exactly the same way as banks have to protect their clients.
However, to remove an unnecessary issues if I know I’m going to make a transaction on my current account that’s above my normal spending habit I will certainly notify the bank.
My credit/charge card however I don’t see the need to.
I think anyone with that kind of money would want to keep it in a bank that is unlikely to fail. Spreading £1.5m in £85k chunks would require 18 banks.
If I had to sum it up it would be they offer bespoke financial services to High Net Work (HNW) and Ultra High Net Worth clients (UHNW).
Different products and services as opposed to retail banking to suit their needs. They often have branches in more than one jurisdiction and can assist with tax planning and wealth management.
Doesn’t really matter for cash - to have any reasonable liquidity your exposure is with one of the large correspondent banks (most likely a bulge bracket bank or very large British/American commercial banks). I doubt any small bank will be able to survive without state assistance if one of those goes bust.
For securities, it’s a different issue - some private banks can act solely as custodians with fully segregated registration rather than custodians + nominees. If it’s the former, your positions won’t form a part of the bankruptcy estate. UBS even pays you if you choose them as your nominee and let them hypothecate your securities.
) so we are used to living with our own homegrown alternatives. Although not at European/World standards of Private Banking, Panamanian banks also offer Private Banking (which most humans would be able to afford too).
