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]