Major Benefits of Using Private Banking Services in the UAE

By Ruchi Gohri
  | Published: 13 October 2021

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Private banking is a process of providing high-net-worth individuals with banking, investment, and other financial services. These individuals possess more wealth than regular clients. Therefore, they can invest in much larger banking and investment products such as real estate, hedge funds, bonds, mutual funds and much more.

Unlike retail banking, private banking focuses on providing these clients with customised banking services based on their financial preferences. Private banking helps these clients explore more financing options and help them find the best private banking services with great benefits.

Features of Private Banking in the UAE

Here are the major features of the best private banking services in the UAE.

  • Management Fees: The individual clients who avail of private banking services need to pay higher management fees to the private bankers.
  • Eligibility Criteria: The clients need to meet specific eligibility criteria to avail themselves of the private banking services. These services include maintaining a minimum monthly balance, paying their EMIs on time, etc. 
  • Relationship Manager: The clients are allotted a private relationship manager to help them find answers to their queries. These managers are financial experts and have a thorough understanding of risk aversion, asset ownership and long-term financial goals and preferences of the client. The relationship manager can help their clients initiate wire transfers, deposit checks and much more.
  • Perks and Freebies: Private banking customers usually get plenty of perks, including lower interest rates, safe deposit boxes, certificates of deposits and more. The deals are still beneficial for the bankers as even a lower interest rate on a higher loan amount can generate substantial revenue.
  • Target Market: The wealthy and prosperous section of the society is the target market for private bankers. They can look into their customers’ personal documents and find potential clients.

Benefits of Private Banking in the UAE

Various banks in the UAE, including Mashreq Bank, Emirates NBD, Abu Dhabi Commercial Bank and others offer the best private banking services. 

Here are the major benefits of opting for private banking services in the UAE.

  • Discounted Services: The private bankers in the UAE offer discounted banking services to high net-worth clients as they bring huge business to the bank. Some services that can be offered at a discount include real-estate management, corporate checking, loans and mortgages, etc. Additionally, the clients involved in import and export businesses may get attractive foreign exchange rates. 
  • Privacy: Banks in the UAE provide their private clients with some proprietary banking products and services that they keep confidential to prevent their competitors from offering these products to the same clients. The clients with higher wealth are more attracted to privacy as it allows them to conceal their business information that, if revealed, may cause an undue advantage to rivals. In addition, sometimes, they have lawsuits involved in their investments, and privacy gives them a sense of security for such information.
  • Higher Investment Returns: Banks in the UAE allot their best representative to manage the finances of a high net-worth client. And these experts help the clients explore more investment options with higher returns. When it comes to private banking, the rate of return for high net-worth clients ranges between 7 per cent and 13 per cent. However, it may sometimes get as high as 30 per cent, depending upon the type of investment and the bank’s ability to take risks.

Conclusion

Banks in the UAE assign financial experts to their high net-worth clients and help them discuss their financial goals. This way, the clients can easily opt for their preferred investment option. 

We at Policy Bazaar provide such services for the customers. Rather than paying a high maintenance fee for a private banker, you can simply give us a call, and our financial experts will help you explore your investment options and guide you through investing in them.

Ruchi Gohri
Ruchi Gohri

Senior Content Writer | She has a penchant for writing and with over 5 years of experience, she plays around with words elegantly, crafting simple content for all to read. In her free time, she loves her couch either to read or catch on to her sleep.