Which Are the Top 10 Private Banks?

High net worth individuals, by nature, tend to have more complex financial requirements and goals than the average consumer. With private banking they receive help in a range of areas—from traditional banking needs to investment and trust services—under a single roof. Clients also benefit from having a dedicated private banker who coordinates all these services and simplifies the communication process.

Today, many banks around the world, both large and small, offer income-dependent banking services to customers who meet their income requirements. However, the sector is still dominated by institutions in Europe and the United States. Here are the 10 biggest private banking providers, according to the market research firm Scorpio Partnership.

10. BNP Paribas (Estimated assets under management: $437 billion)

Headquartered in Paris, BNP Paribas Wealth Management boasts that it's the No.1 private bank in the Euro Zone. The company has a presence in 21 different countries, with hubs in Europe, Asia, and the U.S. A staff of 7,000 provides private clients with high-touch banking and investment solutions.

9. Goldman Sachs (Estimated assets under management: $458 billion)

Goldman Sachs is perhaps best known as a blue-chip investment banking firm that helps companies raise capital. But it's also a major player in managing wealth for individuals, including high net worth clients. Goldman clearly sees this as a high-growth area. The unit already has around 700 employees, and former CEO Lloyd Blankfein said last year they intend to boost that number 30% by 2020.

8. J.P. Morgan (Estimated assets under management: $526 billion)

Executives at J.P. Morgan were ahead of the curve in recognizing the need for investment advice tailored specifically toward high net worth clients. It was one of the first banks to hire a dedicated chief investment officer (CIO) for its private banking segment, a move that has clearly paid off. Today, the U.S. bank offers an "integrated client coverage" model that consists of bankers, investment professionals, capital advisors, and fiduciary managers.

7. Citi (Estimated assets under management: $530 billion)

Another Wall Street wirehouse that offers tailored serves for the ultra-wealthy, Citi Private Bank increased its assets by more than 17% in 2017, according to Scorpio Partnership. The firm's reputation for superior service certainly plays a role in that. In 2018, Citi was named "Best Global Private Bank" at the PWM/The Banker Global Private Banking Awards.

6. Credit Suisse (Estimated assets under management: $792 billion)

Like many private banks, the one at Credit Suisse offers investment opportunities as well as specialized wealth management services. But the latter is where the company is seeing a lot of its growth, particularly in the flourishing Asia-Pacific market.

5. Royal Bank of Canada (RBC) (Estimated assets under management: $908 billion)

RBC, Canada’s largest financial institution, offers a team approach to private banking that puts clients in touch with a private banker and a credit specialist. Those points of contact draw on a larger team of finance experts who help with everything from investment management and tax advice to estate planning and philanthropy strategies.

4. Wells Fargo (Estimated assets under management: $1.899 trillion)

At San Francisco-based Wells Fargo, private banking clients have a single point person for their wealth management needs: their relationship manager. This individual regularly reviews the products and services in a client's portfolio and suggests changes that may be appropriate.

3. Merrill Lynch (Bank of America Corporation) (Estimated assets under management: $2.206 trillion)

Calling affluent investors "a key and expanding part of the firm's client base," Merrill Lynch announced plans last year to consolidate several business units in order to better serve those investors' needs. As a result, the bank is pulling its private banking, international, and institutional groups together to focus on the complex needs of the ultra-wealthy.

2. Morgan Stanley (Estimated assets under management: $2.223 trillion)

At Morgan Stanley, a private wealth advisor acts as your gateway to a broad team of experts, including investment bankers, capital market professionals, and private bankers. The unit handles a wide range of needs, including trust services, estate planning, "lifestyle advisory," and insurance products.

1. UBS (Estimated assets under management: $2.404 trillion)

Managing $2.4 trillion in assets, UBS edges out Morgan Stanley as the largest private banking group in the world. And it hopes the merger of its U.S. wealth management unit with its international operation will help it grow even more. “It will mean improved efficiency, more sharing of best practices, greater returns on our investments, and enhanced client service,” group CEO Sergio Ermotti told the Financial Times in 2018. 

Demand among affluent customers for highly personalized banking services has been a boon to private banking over the years. Banks headquartered in the U.S. and Europe have enjoyed a disproportionate share of that growth, with Swiss-based UBS continuing to lead the pack.

If private banking seems the right choice for your needs, research prospective banks carefully, including the fees involved. Then decide whether the services are worth what you will pay for them compared to what your current bank and broker(s) or financial advisor(s) charge. Don't forget to factor in the convenience of one-stop shopping, however, as well as the skills of the financial professionals to whom you plan to entrust your funds and the resources of the institution that will hold them. Cost is just one element to consider when deciding what makes the most sense for you.