Private Banking.

AuthorKRONEMYER, BOB
PositionBrief Article

Not as exclusive as you may think

Private bankers are eager to get the word out that income and net-worth requirements aren't necessarily sky-high and that the profession is in a unique position to fulfill individual financial goals.

"I definitely believe that private banking is in a growth stage, and could even be considered in a rapid growth stage," says Beth Gudeman, a vice president in private banking at 1st Source Bank in South Bend. "In my immediate area, St. Joseph County, we still have strong professional and executive markets. These markets continue to grow, as well as the amount of wealth." The recent strong, sustained economy--coupled with the huge amount of wealth being transferred from one generation to the next through inheritance--is fueling the rise in private banking.

According to Gudeman, a typical private-banking client is a professional or executive with complex financial needs. "You are definitely looking in the six figures for both income and net worth," Gudeman states.

For private-banking clients, 1st Source offers out-of-the-ordinary services. For example, with a mortgage, the bank takes extra care to ensure that steps are completed in a timely fashion, including visits to a client's office to review documents or for signing. "My flexibility in decision making may also play a part, but we are primarily service-oriented," Gudeman notes.

"Many of my competitors provide a package of products at a certain price for their private-banking clients." By contrast, she says, "I look at the person as a whole. He may not need 50 percent or 75 percent of X services or products."

Gudeman relishes the fact that she can offer her clients the full spectrum of the corporation's financial services and products for addressing such complex issues as taxes and estate. "I primarily advise and consult," she says. "Year after year, I help the person move in a positive financial direction."

Lou Daugherty, district sales manager for private banking at Key Bank in Indianapolis, describes his classic client as "an affluent individual who is looking for an active involvement with regard to his financial services." Key Bank has three basic criteria for acceptance into the program: an annual income flow of at least $100,000; marketable or manageable assets exceeding $250,000 to $500,000; and the desire by the client to use his wealth to increase his financial position.

"We are not looking for the coupon-clipper," Daugherty cautions. "This doesn't...

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