How does a private banker get rewarded?
– Depositing money with a bank is reward enough, of course, whether into the bank or into one of its financial products, but private banking when it has an advisory nature and is not accompanied by lending or borrowing may be fee-based. The level of the fees is highly variable: they will be lower if the bank will get the benefit from time to time of being able to offer bridging finance, or of holding large amounts in transit etc, or if it can hope for more substantial involvement with you in future. If the relationship is purely between financial adviser and client, then the fees may be substantial.
