The Certified Private Banking Manager (CPBM®) is a power-packed education program designed by the Equalifi.
The CPBM® designation is meant for the professionals working in or aspiring to work in financial advisory, multi-family offices, wealth management, private banking, asset management and investment advisory services.
High net-worth individuals and affluent business families have unique needs that can’t be properly addressed by an advisor with a basic financial planning background. A wealth manager for high net-worth individuals and families, needs to learn how to identify and analyze challenges these clients face, and understand how to develop specific strategies to minimize tax, monetize and protect assets, maximize growth and transfer wealth.
The Certified Private Banking Manager (CPBM®) certification program is an advanced credential created specifically for wealth managers who work with these clients, focusing on life cycle of wealth: accumulation, preservation & distribution.
A Certified Private Banking Manager (CPBM®) is expected to have expertise in:
- Investment advisory- Traditional & Alternatives
- Discretionary portfolio management
- Lending
- Wealth Protection
- Risk Management
- Tax Planning- Domestic & Cross-border
- Estate and trust planning
- Wealth structuring
- General financial planning including charitable donations, inheritance, retirement etc
What is ‘Private Banking’
The term private banking refers to a customized line of banking & financial services offered to private individual banking clients that earn high levels of income and/ or owning sizable investment assets, such as ‘High Net Worth Individuals’ (HNWIs). Such private services are distinctive from retail banking services offered or standard wealth management in that clients are assigned a relationship managers or private banker that specifically deal with them personally. In general, it is a valued added banking service in comparison to traditional banking that offers more sophisticated products and more personalized customer service.
Private Banking (PB) is a form of wealth management service offered to ultra-high net worth individuals ($1mn and upwards).
Private banking vs Retail banking
Retail banks provide banking services to the general public. Anyone can open a bank account at a retail bank to, for example, receive his/her salary, pay utility bills etc. A commercial bank provides banking services to businesses and business entities A private bank however, specialises in sophisticated banking and investment services for (very) wealthy private individuals on the one hand, and in the wealth planning structures they (often) use to manage their wealth and/ or to keep their wealth safe on the other.
Nowadays the term private banking is commonly used by any bank for banking services provided to wealthy persons and Ultra High Net Worth Individuals (UHNWI) and private banking is being provided by numerous banks located both onshore (depending on your home country) and offshore (in various foreign jurisdictions).
A private bank will offer its clients a higher service level than a retail bank:
- For the affluent client these services will primarily consist of a broader range of (international) investment products. A relation manager in this segment normally takes care of several hundred clients.
- Private Banking clients with investable assets of over USD 1 million will often have direct access to financial experts such as Investment Advisors, FX-traders, Credit specialists, Wealth Planners, etc., or may even benefit from in-house family office services. A relation manager in this segment normally takes care of no more than twenty-five clients. Clients of this size often also make use of an independent family office.
Not every bank applies client segmentation so strictly, especially with regard to the difference between the private banking and wealth management level. In those banks the emphasis is more on long-standing relationships in combination with a focus on specific geographical markets. This approach is often considered as more personal and quite often results into long-term relationships between the relationship manager (banker) and the client. Sometimes these relationships last for decades and cover several generations.
Although the private banking services are provided to (UHNWI), in the majority of private banks this also includes the accounts held by structures commonly used by (UHNWI), such as International Holding Companies, Trusts, Foundations and Limited Partnerships.