different private banking client segments and their differentiation

Essay from the year 2007 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: In times of high unemployment and crisis it seems to be paradoxical, that just the private client business proves often as support to the financial sector and that it can lead to relatively stable returns for the banks and the clients. Especially the business with the wealthy private clients, which is generally summarized in the term "e;Private Banking"e;, made, according to a study of McKinsey, just in the time from 1997 to 2001 annual yields of 40,8% . Yields which of course resulted in a massively increasing competition between the "e;servicing"e; financial institutions about private clients, especially because of the private banking sector being regarded as one of the growing markets in the next years . The consulting and servicing concepts of the financial service providers are as various as there are terms for them. A differentiation of the segments is difficult and mostly on the basis of the traditional idea of private banking in contrast to the appreciation of the terms retail banking, private wealth management or family office. Despite the definition difficulties about these various and nevertheless similar terms, this shall now happen for a better understanding also with regard to the development of these various servicing concepts.