Singapore’s private banking market is built around two promises: bespoke service and open-architecture investment access. But real value depends on matching your wealth profile and objectives to the right service tier and pricing model. This guide clarifies eligibility, core offerings, and the fees that matter.
1. Who qualifies (typical thresholds)
Thresholds vary by institution and tier; use this as a directional map and confirm current schedules.
| Tier | Typical Minimum AUM | Typical Client Profile | Notes |
|---|---|---|---|
| Affluent/Pre-PB | USD 250k–1m | Emerging HNW, early entrepreneurs | Often a bridge to PB, limited bespoke |
| Entry Private Banking | USD 1m–3m | HNW, founders, senior execs | Dedicated RM, model portfolios, lending |
| Core Private Banking | USD 3m–10m | Larger HNW families | DPM mandates, alternatives access |
| Upper PB / UHNW | USD 10m+ | Family groups, holding companies | Multi-book, bespoke credit, co-investment |
2. What services actually move the needle
| Service | What It Is | When It Helps | Watch-outs |
|---|---|---|---|
| Discretionary Portfolio Management (DPM) | Bank manages to mandate & risk budget | Little time for active oversight | Understand benchmark, tracking error, fees |
| Advisory (non-discretionary) | You approve trades idea-by-idea | Sophisticated clients with views | Avoid over-trading; align incentives |
| Lombard Lending | Credit secured by portfolio | Liquidity without asset sales | Margin calls; rate vs opportunity cost |
| Alternatives Access | PE/VC/hedge/real assets | Diversification & return drivers | Liquidity, J-curve, ticket sizes |
| FX & Structured Solutions | Execution & hedging | Global cash flows, monetizing views | Complexity and embedded costs |
| Wealth Planning | Trusts, insurance, cross-border | Multi-jurisdiction families | Fees independent from investment alpha |
3. Fee components you should model (all-in view)
| Fee Driver | Typical Structure | How to Pressure-Test |
|---|---|---|
| Advisory/DPM | % of AUM by tier (declining) | Ask for breakpoints and fee caps |
| Product Costs | Fund OCFs, notes spreads | Demand clean-share classes; compare ISINs |
| FX & Brokerage | Per trade or spread | Request tiered FX spreads by monthly volume |
| Credit Spread | Reference rate + margin | Compare LTV and margin vs peers |
| Custody/Platform | Fixed or waived above AUM | Confirm waiver conditions and exceptions |
Rule of thumb: Your all-in annual fee drag (management + product + trading + FX) should be well under 1.5% for diversified public-market portfolios at core PB tiers; alternatives are separate.
4. Portfolio governance that keeps risk honest
- Define a written IPS: objectives, constraints, drawdown tolerance, rebalancing bands.
- Measure after-fee, after-FX returns vs agreed benchmarks.
- Review quarterly; change mandates only for fundamental reasons, not noise.
5. Relationship management—what “good” looks like
| Dimension | Signs of a Strong RM Team | Red Flags |
|---|---|---|
| Advice Quality | Clear thesis, risks, exit plan | Product-first pitches, no sizing logic |
| Access | Timely bookings, CIO notes, PM calls | Delayed responses, one-size-fits-all |
| Alignment | Fee transparency, willingness to unbundle | Refusal to discuss ISIN costs |
| Continuity | Back-up coverage, notes in CRM | Knowledge resets at each call |
6. Quick self-assessment (copy/paste)
- Primary objective (growth / income / capital preservation / liquidity).
- Home currency + spending currencies next 24 months.
- Max drawdown you accept over 12 months (e.g., −10%/−15%).
- Liquidity preference (what % can be locked > 3 years).
- Borrowing appetite and acceptable collateralization level.
Disclaimer: This article is for general information and is not investment, legal, or tax advice. Always seek professional counsel for your situation.
private banking Singapore, eligibility, AUM threshold, private bank fees, discretionary portfolio, lending against assets, family office, RM relationship
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Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen.
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