casemark/managing-private-banking-reviews

Managing Private Banking Reviews

Structures private banking relationship reviews covering service quality assessment, fee benchmarking, product utilization, and ongoing strategy alignment for high-net-worth and ultra-high-net-worth clients.

When To Use

• Annual or semi-annual relationship review with a private banking provider
• Evaluating whether to consolidate, add, or terminate a banking relationship
• Benchmarking fees and service levels against market alternatives
• Assessing whether banking services remain aligned with the client's evolving wealth plan
• Responding to a service failure, fee increase, or change in relationship manager

Inputs To Gather

• Relationship overview: Bank name, relationship tier, tenure, assigned RM, and account types (deposit, credit, custody, FX, trust services)
• Fee schedule: All explicit fees (custody, wire, advisory, trust administration, credit facility) and implicit costs (spread on FX, lending margin over benchmark)
• Service inventory: Products and services currently utilized vs. available under the relationship tier
• Performance data: Lending rates obtained, deposit yields, investment performance (if managed), and execution quality metrics
• Client objectives: Current financial plan priorities — liquidity needs, credit requirements, estate planning, cross-border considerations
• Competitor proposals: Any alternative term sheets or proposals received for benchmarking
• Issue log: Outstanding service issues, escalations, or unresolved requests from the review period

Workflow

1. Map the relationship structure

   • Catalog all accounts, facilities, and services under the relationship
   • Note total relationship balances (deposits + AUM + credit outstanding) — this drives negotiating leverage
   • Identify the contractual tier and confirm whether current balances qualify for the stated tier [VERIFY]

2. Benchmark fees and pricing

   • Compare each fee line item against at least two peer institutions or industry surveys
   • Calculate all-in cost of credit facilities (margin + unused fees + any collateral drag)
   • Flag any fees that have increased since the last review or that exceed benchmark medians
   • Note fee waivers or rebates currently in effect and their expiration dates [VERIFY]

3. Assess service quality

   • Review RM responsiveness: average turnaround on requests, escalation handling, proactive outreach frequency
   • Evaluate platform capabilities: digital access, reporting quality, API/data feeds, multi-currency support
   • Document any service failures or missed SLAs during the review period
   • Rate service across dimensions: responsiveness, accuracy, proactivity, problem resolution

4. Evaluate product utilization and gaps

   • Compare services used against the full suite available at the current tier
   • Identify underutilized capabilities (e.g., securities-backed lending, FX hedging, fiduciary services)
   • Flag services the client needs but the bank cannot provide — potential reasons to add a second relationship

5. Align with wealth strategy

   • Confirm the banking relationship supports current financial plan priorities (liquidity, leverage, estate, philanthropy)
   • Assess whether upcoming life events or transactions (property purchase, business sale, generational transfer) require new banking capabilities
   • Review credit facility headroom and covenant compliance against projected needs

6. Formulate recommendations

   • Provide a clear retain / renegotiate / replace recommendation with supporting rationale
   • If renegotiating: list specific asks (fee reductions, rate improvements, service commitments) with target benchmarks
   • If replacing: outline transition plan including account migration sequence, credit facility refinancing timeline, and continuity risks
   • If retaining as-is: specify next review date and interim monitoring triggers

Output

The review report should include:

• Relationship summary table: Bank, tier, tenure, total balances, number of accounts/facilities
• Fee benchmarking matrix: Each fee line item with current cost, benchmark range, and variance flag
• Service scorecard: Ratings across quality dimensions with brief evidence notes
• Product utilization map: Services used vs. available, with gap annotations
• Strategy alignment assessment: How the relationship supports or falls short of current wealth plan objectives
• Recommendation with action items: Retain/renegotiate/replace decision, specific next steps, responsible parties, and deadlines

Quality Checks

• All fee figures are sourced from actual statements or schedules — no estimates without [VERIFY] tags
• Benchmark comparisons use current market data from comparable institution tiers and relationship sizes
• Service quality ratings are supported by specific incidents or metrics, not subjective impressions
• Credit facility analysis accounts for all costs (margin, fees, collateral requirements, covenant restrictions)
• Recommendations are actionable with clear ownership and timelines
• Confidential client data is handled per the institution's data governance requirements [VERIFY]
• Any regulatory considerations (e.g., cross-border banking, FATCA reporting, sanctions screening) are flagged where relevant [VERIFY]