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Private Banking

Private banking provides personalized financial services like money management, investment advice, and estate planning for high-net-worth individuals (HNIs), with minimum account sizes varying by bank. Services include financial goal setting, investment strategies, tax planning, and bancassurance which involves distributing insurance products through banks. The document outlines various models of bancassurance, benefits for banks, customers and insurance companies, as well as principles of personal finance and tax planning implications of financial decisions.

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Suraj Kumar
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166 views14 pages

Private Banking

Private banking provides personalized financial services like money management, investment advice, and estate planning for high-net-worth individuals (HNIs), with minimum account sizes varying by bank. Services include financial goal setting, investment strategies, tax planning, and bancassurance which involves distributing insurance products through banks. The document outlines various models of bancassurance, benefits for banks, customers and insurance companies, as well as principles of personal finance and tax planning implications of financial decisions.

Uploaded by

Suraj Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Private Banking

Santosh Kumar
Private Banking
• Banking, investment and other financial services
for rich and capital accumulating clients.
• Personalized services
• Money management, financial counselling,
investment services for HNIs
• Minimum ticket size varies from bank to bank
• Called as relationship managers, private bankers,
and wealth managers
• Delivered at the choice space and time with
desired facility
Indian wealth pyramid

Ultra HNI

HNI

Affluent
Services Offered
• Financial goal setting
• Cash flow analysis and management
• Banking and credit management
• Investment strategy
• Insurance analysis
• Business succession planning
• Estate planning
• Tax planning
• Trust services
Steps in Personal Finance
• Projected balance sheet
• Determination of goals
• Developing a plan
• Execution
• Monitoring and reassessment
Key areas of financial planning
• Financial position
• Adequate protection
• Tax planning
• Investment and accumulation goals
• Retirement planning
• Estate planning
Principles of Personal Finance
• Spend less than what you earn
• Make the money you have work for you
• Be prepared for the unexpected
Bancassurance Concept
• Distribution of insurance products through the
bank’s distribution channels
• Synergy between banks and insurance
companies
• Add to non fund based income for banks
Models of Bancassurance
Structural Classification
• Referral model....banks will give the data of prospective
clients (execution is done by insurance companies)
• Corporate strategy ( refer and execution by
bankers)...good for mid sized banks
• Insurance as integrated financial services ( large banks
will prefer that)
Product Based Classification
• Stand alone insurance products
• Blend of insurance and bank products ( home loans
with insurance)
Benefits of Bancassurance
For Bank
• Source of income
• Product diversification
• Customer retention
For Insurance Companies
• Meeting competition
• Savings in high cost of agents
• An access to rural segment
Cont.
For Customers
• Product innovation and distribution as per the
needs of the customers
• Less cost, diversified product, quality and timely
services and conveniences
• Comprehensive financial advisory services under
one roof
• Easy disposal of claims
• Reduced premium
Financial planning and income tax
implications
• Tax savings avenue
• Reimbursements
• Loan disbursement
• Income from the last employer
• Tax deducted at source on income
• Pay advance tax by 15th March
• Capital gains tax
Tax
• Tax evasion ( inflated expenses, conceal
income, manipulation of accounts)
• Tax avoidance ( doing wrong things but taking
advantage of loopholes in the legal provisions,
job to spouse)
• Tax planning ( ELSS, housing loan, tuition fee,
medical bills, insurance, donations)
Estate planning
Benefits
• To provide care for others
• To manage and multiply money
• To ensure a continued lifestyle for survivors
• To minimize taxation

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