Each and every customer of C Hoare and Co, a bank that has been owned by the Hoare family for 12 generations, benefits from the dedicated service of a relationship manager and their assistant, providing them with two reliable points of contact. In a similar fashion, Hampden and Co, a relatively new bank, assigns private bankers to serve every customer.
However, this level of personalized service may not be accessible to everyone.
Determining the Minimum Requirements for using a Private Bank
As with any industry, the specific requirements vary. Coutts, which is one of the most renowned “exclusive banks” and a subsidiary of NatWest, falls somewhere in the middle. To bank with Coutts, you need at least £1 million in investable assets or a borrowing amount of £1 million.
On the other hand, C Hoare and Co has slightly higher requirements—£3 million in deposits and £1 million in lending. SG Kleinwort Hambros (owned by the French company Société Générale) has even stricter criteria, demanding a minimum of £2 million in investable assets.
Nonetheless, accessing private banking services is not limited to millionaires. Hampden and Co, for example, enables individuals to become clients with a deposit of £350,000 or a borrowing amount of £500,000.
In addition to financial considerations, some private banks select clients based on other factors. For instance, C Hoare and Co interviews each client individually to ensure a good fit with the bank.
Benefits of Private Banking for High-Net Worth Individuals
Aside from the dedicated private bankers and exceptional service, private banks are often an ideal choice for individuals with complex financial situations.
For those who receive income in multiple currencies, such as individuals in the entertainment industry, having a bank that can handle currencies like sterling, dollars, and euros, as well as facilitate transfers to different jurisdictions, can be immensely helpful.
Business owners often find it convenient to manage both their personal and corporate finances at a private bank, which serves as a one-stop shop for their entire family.
According to Mike Stimpson from wealth manager Saltus, another advantage is leverage: private banks have the ability to lend money against a client’s assets.
“For some people, this is extremely valuable. If you believe it’s an opportune time to invest in equities and you have a £5 million portfolio, the bank can lend you an additional £2 million under attractive terms, expanding your exposure to £7 million,” explained Mr. Stimpson.
Additional Services Offered by Private Banks
For many high-net worth clients, the non-banking services provided by private banks are equally important, a distinctive feature often emphasized by Coutts.
The bank aims to create an environment where clients feel comfortable dropping in at its headquarters on the Strand. To this end, Coutts maintains a rooftop garden equipped with a fully functional kitchen and three beehives. The honey harvested from these beehives is used by the private chef, Peter Fiori.
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