The Private Banking Top 10 List
High-net-worth individuals (HNWIs) tend to have more complex financial needs than most retail consumers. These are people with assets that can easily be liquidated. While there's no consensus about how much a person needs to qualify in this category, it's safe to assume that you'd need at least $1 million. Charles Schwab, though, says you needed at least $2.2 million to be called wealthy as of 2022.
Regardless of how much they hold, HNWIs often turn to private banks to meet their financial needs. These financial institutions offer arange of servicesunder one roof, from investment management to trust and estate planning. Wealthy clients are typically assigned a dedicated private banker or relationship manager. This professional becomes the single point of contact for all of their financial matters.
This article analyzes details of some of the world's largest private banks. The following list comprises the most prominent private bankers according to global financial data provider Private Banker International. Most of these names may sound familiar, as they also offer banking services for the general public. The banks are ordered according to the list's ranking, but each institution's assets under management (AUM) are updated as of the end of 2022, unless noted otherwise.
Key Takeaways
- Private banking caters to high-net-worth individuals with at least $1 million in liquid assets.
- Many private banks also have a strong consumer and retail banking presence in addition to divisions that cater to high-net-worth individuals.
- Wealthy individuals with large deposits get white-glove services for their financial needs.
- Investment advice, tax planning, and estate planning are among the services offered to these clients.
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UBS
- AUM: $3.9 trillion
- Headquarters: Zurich, Switzerland
- Established: 1862
UBS consistently ranks among one of the world's largest private banks. The bank's divisions include global wealth management, corporate and consumer banking, asset management, and investment banking. After UBS moved to purchase its rival Credit Suisse in March 2023, it is estimated that the combined firm has a massive $5 trillion in invested assets. Credit Suisse was previously on the list of the top private banks before it was absorbed by UBS.
Morgan Stanley
- AUM: $1.3 trillion
- Headquarters: New York
- Established: 1931
At Morgan Stanley, a private wealth advisor functions as the gateway to a broad team of experts, including investment bankers, capital market professionals, and private bankers, who collectively handle a spectrum of needs including trust and estate planning and insurance products. The bank has operations in 42 countries, which benefit from its banking and investment services, along with its research and trading products.
Bank of America
- AUM: $1.4 trillion
- Headquarters: New York
- Established: 1930
Previously known as Bank of America Merrill Lynch, the bank now operates exclusively as Bank of America. It operates banking, investing, and wealth and asset management services, among others. Clients include personal, corporate, institutional, and government agencies. It has a global reach in more than 35 countries, with about 68 million customers in the United States alone.
The United States and Europe are home to most of the world's largest private banking operations.
J.P. Morgan Private Bank
- AUM: $2.4 trillion (J.P. Morgan)
- Headquarters: New York
- Established: 1799 (J.P. Morgan)
J.P. Morgan Private Bank is the brand name for the private banking business conducted by J.P. Morgan. Voted the "World's Best Private Bank" by Global Finance in 2022, J.P. Morgan Private Bank has been working with individuals and their families for more than 200 years. With a team of specialists in planning, investing, lending, and banking, J.P. Morgan Private Bank provides a variety of services and guidance to build, preserve, or transfer wealth.
The total AuM for J.P. Morgan as of year-end 2022 does not account for its purchase of the struggling First Republic Bank. J.P. Morgan CEO Jamie Dimon expects that the deal will add to the firm's wealth management and private banking business.
Citigroup
- AUM: $2.42 trillion
- Headquarters: New York
- Established: 1998
Citi is another leading global financial service institution based in New York. Although the bank's roots date back to the 1800s, the institution's latest iteration was established in the late 1990s. Like others in this list, Citi works with government, corporate, institutional, and retail clients in the Asia Pacific region, Europe, the Middle East, Africa, Latin America, and North America.
In addition to private wealth management, Citi's other divisions include consumer banking, small business services, investment management and advisem*nt, lending, and payment services, among others. By providing clients with these services, it helps achieve its goal of economic growth and progress.
BNP Paribas
- AUM: €406 billion ($450 billion), as of March 2023
- Headquarters: Paris
- Established: 1848
BNP Paribas is an international banking group that was formed in the mid-1800s. It operates in 68 different regions around the world, with 193,000 employees. The company's services include wealth management, investment services, corporate banking, retail banking, payment services, and asset management. It boasts more than 33 million individual clients and 850,000 corporate clients in its global retail banking operations.
Goldman Sachs
- AUM: $2.5 trillion
- Headquarters: New York
- Established: 1869
Goldman Sachs is one of the world's leading banking firms. It provides a range of financial services to government, corporate, retail, and investment clients, including:
- Investment banking and management
- Securities
- Retail banking
The firm also services high-net-worth clients. Customers are generally required to invest at least $10 million to open an account with its private wealth management division.
Julius Baer
- AUM: CHF $424 billion ($459 billion)
- Headquarters: Zurich, Switzerland
- Established: 1890
Although it's not a household name, Julius Baer is one of the leading wealth management firms in Switzerland. Its focus is to provide advisory services to private clients through high-end services. The firm's strategy is built on three main principles:
- Best-in-class client experience
- A solid reputation
- Sustainable profitability
The bank has a presence in Europe, Asia, the Middle East, Africa, and Latin America.
Raymond James
- AUM: $173.8 billion
- Headquarters: St. Petersburg, Florida
- Established: 1962
Raymond James was founded in 1962 by Bob James and went public, listing on the New York Stock Exchange (NYSE) in 1983.
Based in Florida, Raymond James is a full-service investment dealer. It has operations in Canada, the United States, and abroad. The company offers a wide range of financial and investment services, serving both institutional and retail investors, including HNWIs.
HSBC
- AUM: $3.0 trillion
- Headquarters: London, U.K.
- Established: 1865
HSBC rounds out the list of the top 10 private banking operations. Although it was not included on the original rankings created by Private Banker International, the institution provides services that rival those of its peers. HSBC Global Private Banking offers investment management, wealth planning, and bespoke financing—lending solutions that align with the client's specific financial situation and long-term goals.
What Is Private Banking?
Private banks provide financial services to high-net-worth individuals. Financial institutions offer a variety of products and services to wealthy clients, including investment management, tax planning, trust planning, and estate planning. Clients are generally assigned a dedicated private banker, intending to serve as a one-stop shop for their financial needs.
How Much Money Do You Need to Be Considered a High-Net-Worth Individual?
Individuals are generally considered to have a high net worth if they have liquid assets of at least $1 million. However, there is no defined standard for when a person is considered wealthy, and private banking institutions may have different definitions and thresholds for the clients they do business with.
What Is the Difference Between a Private Bank and a Commercial Bank?
Commercial banks provide financial services to companies and other organizations, whereas private banks offer services to wealthy individuals and families. Private banks often provide a personalized set of services to help clients meet a variety of financial needs.
The Bottom Line
Demand for highly personalized banking services and one-stop shopping has been a boon to the private banking industry, especially because of demand from people with a high net worth. The banks on this list are not only among the world's most well-known, but they're also the ones with the highest assets under management. Headquartered in the U.S. and Europe, they enjoy a disproportionate share of that growth.
Correction—Feb, 1, 2023: A previous version of this article wrongly referred to J.P. Morgan Private Bank as "J.P. Morgan Chase." J.P. Morgan Private Bank is one of the affiliated companies under the common control of J.P. Morgan.
