Private Banking Andorra
Private banking in Andorra consists of highly professional and comprehensive management of a client’s wealth. The financial advisor of the Andorra private bank takes care of the investment, estate planning, financial, and tax needs of individuals or high net worth groups.
Private Banks operating in Andorra
In Andorra, only five entities are focused on personal banking with a corresponding high net worth section:
Andorra Private Bank: Characteristics
Private banks in Andorra are meeting the global needs of the client’s wealth through:
- Estate, financial, and tax planning.
- Intergenerational orientation.
- Individualized management.
- The best and most complete range of products and services.
- Strong interpersonal relationship with the client.
Private Banking Services in Andorra
The range of Andorran private banking services is very varied:
- Family office services.
- Investment in real estate assets.
- Availability of a wide range of investment funds.
- SICAV and structured products.
- Management of movable and non-movable assets.
- Tax optimization of wealth.
- Intergenerational planning.
Private Bank Counseling Client Profile
Private banking is dedicated to financial advice and wealth management. For this, many variables are taken into account, for which it is essential to make a good client profiling:
- Risk profile
- Profitability objectives
- Liquidity needs
- Time horizon
- Tax situation
What is the minimum net worth for private banking investments?
Depending on the entity, the minimum capital to access private banking services in Andorra is between €200,000 and €500,000. Remember that this service is focused on high net worth individuals and is an exclusive product. Below private banking, with a capital of around €60,000, you can access the benefits of personal Andorra banking.
Andorra Private Banking: Types
For a private banking service in Andorra, the bank-client relationship has to stand out for offering a personalized service. It is necessary to distinguish between client banking and product banking:
- Client banking focuses on making the relationship with the client profitable, seeing it as a whole and not as a sum of products and services.
- Product banking with product placement is not based on the customer, but on commercial campaigns, without taking into account personalized service.
There are several ways to structure an Andorran Private Banking service:
- U.S. style focused on the corporate client coming from wholesale banking. That they do private banking from investment banking,
- -font-secondary); font-size: var(–global–font-size-base);”>Swiss-style private Banking more patrimonial-focused on the high net worth client who seeks above all quality of life and control over his wealth, which he wishes to keep away from taxes, inflation, investment costs, and invests in conservative products.
Andorra Wealth Management by Private Banking
Different needs, different portfolio compositions. Any investor with large assets will need to design a portfolio according to different parameters: taxation, profitability, wealth preservation, time horizon, and savings objective.
Starting from the premise of diversification in offshore banking in Andorra portfolios, the question that comes to mind is related to the type of investment vehicle that best suits each client according to his profile and assets.
When composing a financial portfolio, the most commonly used traditional investment products in Andorra are investment funds, as they offer a more attractive tax regime for individuals and provide greater diversification. However, a diversified portfolio can include national and international equities, fixed income, pension plans, deposits, and unit-linked, among others.
Private Banking Financial Advisor: Importance
The figure of a financial advisor becomes a fundamental pillar for the investor, not only because of the fact of forming a portfolio that suits his expectations but also because of the ability to provide him with peace of mind and reasoning on how to approach the market movements that affect investment in Andorra. In other words, from a psychological point of view, the advisor will help his client not to get carried away by emotions.
A financial advisor must be able to identify exactly what are the real savings needs and investment objectives of each client, and from this point, adjust the investment strategy to the client’s risk profile and time horizon.
At Andorra Partner, we distribute the portfolios in a system of boxes that allow clients to achieve savings objectives according to time horizon and always adjusting to the level of risk that the client can bear.