DBS (Development Bank of Singapore)

(18-10-2015, 11:36 AM)CY09 Wrote: Hi GG,

Have a curious question. What is the difference in products offered to private banking clients and that of regular clients? Personally, I feel there is not much difference in the products peddled out to both groups. It is still the same where the bank offers bonds or funds and then extract a high management fee for managing these funds.

Perhaps you can offer insights in the difference between the both. Thanks!

high net worth above 250k can offer more complicated products... ie more confusion and hence higher risks... these are higher margin products that may not necessary deliver the promised returns...

Just stick to basics and know what you are in and do it well... 

Its not about the quantum of returns but the sort of returns that one is comfortable with your own risks tolerance.

YMMV

(18-10-2015, 11:45 AM)greengiraffe Wrote:

(18-10-2015, 11:36 AM)CY09 Wrote: Hi GG,

Have a curious question. What is the difference in products offered to private banking clients and that of regular clients? Personally, I feel there is not much difference in the products peddled out to both groups. It is still the same where the bank offers bonds or funds and then extract a high management fee for managing these funds.

Perhaps you can offer insights in the difference between the both. Thanks!

high net worth above 250k can offer more complicated products... ie more confusion and hence higher risks... these are higher margin products that may not necessary deliver the promised returns...

Just stick to basics and know what you are in and do it well... 

Its not about the quantum of returns but the sort of returns that one is comfortable with your own risks tolerance.

YMMV

I reckon, the "private bank biz" we are discussing, is more than just the "premium banking" retail services. I reckon it is more of the asset management services to the HWNIs

(18-10-2015, 11:36 AM)CY09 Wrote: Hi GG,

Have a curious question. What is the difference in products offered to private banking clients and that of regular clients? Personally, I feel there is not much difference in the products peddled out to both groups. It is still the same where the bank offers bonds or funds and then extract a high management fee for managing these funds.

Perhaps you can offer insights in the difference between the both. Thanks!

I guess banks allow these clients super preferential loans rates to buy bonds to enhance the yield.

Also, read from tradehaven that dont know what structured product can swap fixed rate for variable rate end up private clients can get super low mortgage rates even lower that the lowest available mortgage rates in the market. Not a private client so....

(19-10-2015, 09:42 PM)Stephen Wrote:

(18-10-2015, 11:36 AM)CY09 Wrote: Hi GG,

Have a curious question. What is the difference in products offered to private banking clients and that of regular clients? Personally, I feel there is not much difference in the products peddled out to both groups. It is still the same where the bank offers bonds or funds and then extract a high management fee for managing these funds.

Perhaps you can offer insights in the difference between the both. Thanks!

I guess banks allow these clients super preferential loans rates to buy bonds to enhance the yield.

Also, read from tradehaven that dont know what structured product can swap fixed rate for variable rate end up private clients can get super low mortgage rates even lower that the lowest available mortgage rates in the market. Not a private client so....

Nothing new here. Wholesale is typically done with a discount, the same applies to banking services to HNWIs.

The "structured product" is called interest rate swap, which is a popular hedging derivative product. M1 is having it, and able to achieve practically fixed rate loans, with very low effective interest rate.

https://www.youtube.com/watch?v=GMomBHcmGBM

DBS iWealth

Experience a comprehensive digital wealth management platform, personalised to meet your financial needs. Find out how at https://www.dbs.com.sg/iwealth

Its a modern ad that is silent throughout and most likely appeal to the M Gen... 

I wonder how does it reached out to the older folks that are usually more wealth off?

Each bank have their own criteria to invite depositors into their 'privileged' banking services.

I find that all have the same approach to stroke egos, and many fall for it.
Drop in just to have a nespresso, read the Asian Wall street journal for free?

Banks just want your money... once it runs out you become very lonely.

No thanks.

(21-10-2015, 10:49 PM)Porkbelly Wrote: Each bank have their own criteria to invite depositors into their 'privileged' banking services.

I find that all have the same approach to stroke egos, and many fall for it.
Drop in just to have a nespresso, read the Asian Wall street journal for free?

Banks just want your money... once it runs out you become very lonely.

No thanks.

Bankers always lend u the umbrella when the sun is shining and withdraw them at the first sign of moisture...

I m not asking anyone to become their clients but their ads which is the direct result of their culture will enable us to choose the banks that one is comfortable investing in.

(19-10-2015, 11:00 AM)CityFarmer Wrote:

(18-10-2015, 11:45 AM)greengiraffe Wrote:

(18-10-2015, 11:36 AM)CY09 Wrote: Hi GG,

Have a curious question. What is the difference in products offered to private banking clients and that of regular clients? Personally, I feel there is not much difference in the products peddled out to both groups. It is still the same where the bank offers bonds or funds and then extract a high management fee for managing these funds.

Perhaps you can offer insights in the difference between the both. Thanks!

high net worth above 250k can offer more complicated products... ie more confusion and hence higher risks... these are higher margin products that may not necessary deliver the promised returns...

Just stick to basics and know what you are in and do it well... 

Its not about the quantum of returns but the sort of returns that one is comfortable with your own risks tolerance.

YMMV

I reckon, the "private bank biz" we are discussing, is more than just the "premium banking" retail services. I reckon it is more of the asset management services to the HWNIs

Ya private banks serves HNWI (>USD2-5 mil?) and Ultra high (>50 mil??). Ultra high's needs are very different from normal mortals, not just about offering better rates. Imagine having to manage 40mil of assets when you have full time job. Need estate planning, succession planning, need to hide money from tax / minimize tax, need to monetize locked up assets to make more money / take loans off shady collateral, philantropy, private equity, aircraft purchase financing, need to use funny ownership structures to park assets, etc. list goes on and on and on

(22-10-2015, 12:36 AM)Riderr2000 Wrote:

(19-10-2015, 11:00 AM)CityFarmer Wrote: I reckon, the "private bank biz" we are discussing, is more than just the "premium banking" retail services. I reckon it is more of the asset management services to the HWNIs

Ya private banks serves HNWI (>USD2-5 mil?) and Ultra high (>50 mil??). Ultra high's needs are very different from normal mortals, not just about offering better rates. Imagine having to manage 40mil of assets when you have full time job. Need estate planning, succession planning, need to hide money from tax / minimize tax, need to monetize locked up assets to make more money / take loans off shady collateral, philantropy, private equity, aircraft purchase financing, need to use funny ownership structures to park assets, etc. list goes on and on and on

This is what I understood on the private banking biz too. Rather than ego-boosting, the service does meet their needs meaningfully. BTW, the service charged by private bankers are not cheap, comparable to active fund managers.

(22-10-2015, 09:19 AM)CityFarmer Wrote:

(22-10-2015, 12:36 AM)Riderr2000 Wrote:

(19-10-2015, 11:00 AM)CityFarmer Wrote: I reckon, the "private bank biz" we are discussing, is more than just the "premium banking" retail services. I reckon it is more of the asset management services to the HWNIs

Ya private banks serves HNWI (>USD2-5 mil?) and Ultra high (>50 mil??). Ultra high's needs are very different from normal mortals, not just about offering better rates. Imagine having to manage 40mil of assets when you have full time job. Need estate planning, succession planning, need to hide money from tax / minimize tax, need to monetize locked up assets to make more money / take loans off shady collateral, philantropy, private equity, aircraft purchase financing, need to use funny ownership structures to park assets, etc. list goes on and on and on

This is what I understood on the private banking biz too. Rather than ego-boosting, the service does meet their needs meaningfully. BTW, the service charged by private bankers are not cheap, comparable to active fund managers.

fee free as long as u meet a minimum asset size and turnover...

sometimes I think its the man on the streets that are paying for the higher net worth...