Atlantic Union Bank Wealth Management’s Private Banking team offers more than a concierge-like banking service for high-net-worth (HNW) clients. Our Private Bankers work in tandem with the rest of the Wealth Management team and our Bank partners to find creative solutions for our clients so they can get the most out of their money and investments.
Managing Director of Private Banking, Chris Kaufman, shares some insights into the Private Banking experience.
How do you describe Private Banking?
In short, Private Bankers provide core banking products – loans, mortgages, and deposit services – to HNW individuals. However, it’s much bigger than that. The magic in what we do is not only in the general banking products we provide, but it’s about finding a creative solution to solve each client’s unique challenge. It’s about building relationships. Often customers come to us with a very specific need. By working closely with our Bank partners and other wealth management advisors, we can provide a more holistic approach to their banking needs and financial goals.
Are there specific issues that concern your clients?
Primary concerns for HNW clients center on diversifying their assets, creating multiple streams of income and having sufficient cash flow in retirement.
We see clients with significant amounts of fixed assets but very little liquidity. For example, real estate is a great investment and can generate a nice monthly income. However, if a need arises, accessing equity in that estate is not a quick and easy process.
We also encounter high income earners who are worried about maintaining their lifestyle once they retire and their income stops. They ask how they can generate additional income in retirement to augment their 401k earnings and investment revenue to meet their needs.
In both cases, we can provide creative solutions to help address these concerns.
What do you mean by “creative solutions?” Can you give an example of solving for a particular need?
For our HNW clients, we often use credit as a tool to solve for the challenges mentioned above.
Maybe they have a portfolio of investment real estate that is paid off and generates a significant recurring cash flow but they have little true liquidity. They could leverage those investment properties in the form of a cash out refinance to build an investment portfolio with our wealth partners. They can use the cash flow from the real estate for the loan’s monthly payment while adding a new asset in the form of an investment account that offers a rate of return and potential income.
Perhaps they need to make a significant purchase and they are lacking funds. They may believe liquidating their investment account is their only option. However, liquidating that investment account can potentially raise tax consequences, not to mention the loss of potential return on the money that has been liquidated. As an alternative, we may suggest they utilize a line of credit against the account. This could meet their cash flow need while leaving the investment account intact.
How important is it to know your clients?
We are partners with our clients. Private Bankers want to know as much as possible about their clients, to provide the best solutions. If we have enough information about someone and have a relationship with them, we can present them with options that may better fit their unique situations.
What sets Atlantic Union Bank Wealth Management Private Banking apart from other banks?
We have a team of experienced Private Bankers who are relationship-focused and work hard to fully understand a client’s needs and financial objectives. We work hard to gain the trust of our clients and truly be advisors who understand their needs and how they fit within an overall financial strategy.