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A private banker is a bank employee who usually works in retail banking, assisting clients in managing their funds and offering various solutions to their financial needs such as: B. opening savings or other accounts, taking out auto or mortgage loans, investing in money markets and obtaining certificates of deposit or other commercial banking products, and planning for retirement or children's college expenses.

Private bankers typically work with retail clients to help them with their banking-related questions or problems. On the other hand, a private/investment banker's main objectives are also related to sales performance and they mainly work with companies or high net worth individuals. While private and investment bankers get to know their clients very well, private bankers do not typically work with a specific list of clients.

Advantages of a private banker
A personal manager can help you with almost any question related to banking services and can help you with any ambiguities. Private bankers can also give you advice on which services are best for you. However, when applying for a new service via your online banking, you are on your own. There are still many people who don't feel comfortable on the Internet and prefer face-to-face communication.

Disadvantages of a private banker
When considering the disadvantages of private banking, there are two main reasons why online banking might be preferable to visiting a private banker in a branch. First, like any other industry, bank employees work in the front office and meet with their existing or potential customers on a daily basis. This means your personal manager has sales quotas and the majority of his salary is based on commissions. Private bankers are most often judged on their sales performance, and this is an important factor when branch managers consider possible promotions or downsizing. Ultimately, all personal managers will try to sell you as many banking services as possible, and if they are good salespeople, they will succeed. In fact, those wanting to avoid aggressive selling strategies might be wise to stay away from stores at the end of the month, and especially the end of the quarter.

Another disadvantage to consider is the higher transaction costs compared to online banking. While the number of services offered is largely the same whether you use a private banker or your online banking, banks very often offer two different prices for services depending on whether they are done in-branch or online. Banks have to pay for branch maintenance, employee salaries and other costs, and these costs are covered by the transaction fees you pay at the bank. Lower or no transaction fees are also used as a strategy to motivate customers to use their online banking as often as possible. Nowadays, some banks are even designed without branches and their services are only available via the Internet or by telephone.