Private Banking-What is it?

Not long ago, during a routine annual review with a client, the term private banking came up. A blank look came across the clients face, as I asked them if they knew that HFG offered private banking services and understood the difference between private banking and retail banking. It occurred to me that over the last 12-24 months, much has changed at HFG Trust. First, in 2016, we partnered with Community First Bank and formed a State Chartered Trust Company. Then, in 2017, we formalized some offerings to private banking hoping to improve the banking experience for our clients.

In its simplest form, private banking is another word for a personalized experience. This form of banking originated in Venice, Italy, where the first banks were tasked with taking care of finances for wealthy families. Due to the client's need for secrecy and security, this unique service became very popular and has evolved to include custom products to enhance an overall VIP experience.

Our objective at HFG Trust, with the partnership of Community First Bank, has been to bring this type of financial experience to our community where clients of all different levels of wealth can experience private, efficient and solution driven service. This is different from the typical retail banking experience, where customer service and tellers hide behind their regulatory requirements and policies. At the end of the day, it is an unaccountable way to say your business is not important to us. Through our partnership with Community First Bank, we have equipped each of our advisors with the tools and resources to satisfy your banking needs.

This can include common financial needs such as:

  1. Savings and Checking accounts - better rates, no minimum balances and no service charges
  2. Health Savings Accounts
  3. Traditional Mortgages - competitive rates and $400 of credit towards origination fees
  4. Home Equity Line of Credit

Or, some more complicated needs:

  1. Unsecured line of credit - up to 10% of assets under management with a maximum of $150,000
  2. Investment secured line of credit - up to 50% of assets under management with a maximum of $1,000,000

Each of these solutions can be helpful tools to ultimately assist you in reaching the goals and objectives you have set out to accomplish with your advisor. The best part about this is that the person you trust most, who has been commissioned to take care of your best interest, can assist you with these requests. Sometimes the ideal home comes onto the market or a business opportunity comes knocking unexpectedly and there is a need for quick financing. These offerings allow your advisor to efficiently take care of all your financial needs and act as a true liaison on your behalf.

Case Study:

Earlier this year I received a call from a client notifying me that they had identified a great commercial real estate opportunity on auction, but needed financing in 3 days. I quickly called our loan specialist at Community First Bank and explained the situation. We were able to utilize a mixture of Unsecured Line of Credit and Investment Secured Line of Credit to approve financing in time for the bid to be placed. The client ultimately won the property, but it never could have happened without our private banking offering. Forget the fact that the financial products that were utilized would have been difficult for them to qualify for at your everyday bank, but the timeliness of the transaction allowed them to jump on a great opportunity. Fortunately, because we had all of their past and current financial information, I was able to provide the bank with all their information without them having to worry about it.

This is a small glimpse of our Private Banking offering, which each of our advisors would be happy to share with you. If you have any banking needs and believe you would enjoy a personal liaison, feel free to ask about private banking next time you visit for your review. In a world where money and profits take precedent leaving many of us feeling like a number, HFG Trust is committed to delivering the ultimate financial experience.

 

Legal Information and Disclosures

This memorandum expresses the views of the author as of the date indicated and such views are subject to change without notice. HFG Trust has no duty or obligation to update the information contained
herein. Further, HFG Trust makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is potential profit there is the possibility of loss. This memorandum is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicit and securities or related financial instruments in any jurisdiction. Certain information contained herein concerning economic
trends and performance is based on or derived from information provided by independent third-party sources. HFG Trust believes that the sources from which such information has be obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. This memorandum, included the information contained herein, may not be coped, reproduced, republished, or posted in any form without the prior written consent of HFG Trust.

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