What are the best Wealth Management banks in Nigeria for high-net-worth individuals part 1 – that will be the topic of today’s article.
Nothing written here should be considered as financial advice, nor a solicitation to invest.
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It remains my view that private banks usually offer poor value compared to do-it-yourself (DIY) or services like our own.
Table of Contents
Wealth management refers to the process of creating wealth when a group of experts examines the financial needs of a client and proposes appropriate financial products. The wealth management process includes wealth protection, risk management, wealth accumulation, proper placement of your wealth, and subsequent distribution of wealth.
The scope of money management is broader, and its main motive is to create long-term wealth. Wealth management helps in generating income from the asset base.
In wealth management, the client receives the necessary services from one appointed asset manager. The asset manager functions depending on the business under various titles, including financial advisor or financial advisor. By providing money management services, the advisor uses a flexible investment approach with a risk management policy.
The purpose of a wealth management consultation is to help the client understand what exactly is happening in his account, as well as the reason for this.
Why is wealth management important?
Wealth management plays an important role in financial matters. In essence, people invest large sums of money in their savings to accumulate capital with the motive that the person can offer financial security to their loved ones. Postponing savings will not serve as a motive. It is equally important to develop the right strategies to understand where a person’s savings can be used.
Wealth management services offer such services where a person can get a plan on how to invest their money. Wealth management tips help a person in creating a financial plan through which you can use your assets in such a way that almost all financial goals are achieved. Advice ensures that the money invested continues to accumulate, either through prudent investment policies or effective tax planning.
Without wealth management and the right financial strategy, it is extremely difficult to achieve realistic goals. Before developing financial strategies, it is important to identify and understand your financial strengths and challenges. The right financial strategies help develop strengths and identify obstacles. A wealth management expert helps bring the plan to life and periodically monitors its progress. Counseling also helps in developing strategies to ensure the financial security of loved ones.
Advantages of wealth management
Helps in providing a systematic financial plan
With wealth management services, a wealth advisor assists investors in creating a financial plan. By giving proper advice, he helps the client to systematically accumulate his capital. Experienced asset managers help their clients understand the requirements and goals to be achieved. It helps in developing financial strategies. Welfare counseling spends a great deal of time and effort understanding the client’s needs and helping them meet their financial goals as requested.
Helps eliminate financial stress
Wealth consultants with their knowledge and experience assist their clients in understanding financial uncertainty. Wealth expertise helps in making important financial decisions whenever the need arises. Wealth Management Advisors help their clients manage their finances in volatile market conditions that can often lead to stress.
Wealth management helps reduce financial stress and prioritize financial decisions based on time frames. A money management advisor considers all financial aspects when creating goals, which ultimately helps to organize funds from time to time.
Provides customized services
Wealth managers provide personalized services to individuals depending on their financial situation. that is, when it comes to money management, there is no universal formula that can be applied to everyone. Consulting provides personalized services to each individual client.
The asset manager develops financial strategies tailored to the personal needs of clients. The asset manager acts as a financial advisor and adviser and the client can contact his wealth manager at any time and discuss any issues related to his financial affairs, and asset management advice helps the client meet all his needs by creating various strategies.
Provides a flexible investment approach
The asset manager constantly thinks about the improvement and financial well-being of the client, therefore, if the need arises, he provides a flexible approach to investing. Money management recommendations take into account both market categories and market conditions. Through asset management, advisors spend their time helping the client through difficult financial ups and downs to help make better investment decisions. Wealth managers use this flexible investment approach, in which the advisor can change financial strategies to reflect new ideas, perceptions, and market conditions.
Disadvantages of wealth management
After looking at the benefits – now it’s time to take a look at the potential risks involved in starting this process with a financial firm so you have a complete understanding of the pros and cons of money management. Avoiding going to a financial firm with these red flags can save you time and money and help you reach your financial goals.
While there are certainly reputable non-fiduciary financial advisors, it is best to avoid entering into agreements where your advisor has no legal obligation to act on your behalf.
You should be aware that advice given to you regarding financial products is for you only and does not create a conflict of interest. The only way to be sure of this is to be wary of financial advisors who receive commissions for their services.
Lack of experience or big thinking
It goes without saying that you should seek out a financial advisor who has been around and can help you deal with difficult situations should they arise. In addition, it is wise to avoid firms that do not take into account your full financial picture, because this can lead to unnecessary costs – for example, in taxation – if your consultant does not take a proactive approach to tax planning.
What types of services do wealth managers provide?
A wealth Manager is a true all-rounder, a consummate financial professional with deep knowledge of the wide range of products, services, and methods that can be used to meet client needs. Here are some things that a financial manager will understand:
• Creation and management of retirement accounts. This can include everything from the simple setup of TFSA accounts to complex strategies that use tax deferral and shelter as a means to generate huge compound returns.
• Analysis and selection of individual shares. Asset managers are often well versed in the fundamental analysis of individual securities, including the assessment of industry factors, the analysis of balance sheets and income statements, and the independent valuation of publicly traded firms.
• Working with securities with fixed income. Wealth managers understand the ins and outs of bonds, annuities, and life insurance, helping clients develop and implement long-term strategies that protect against risk and ensure lifestyle continuity after retirement.
Banking in Nigeria
The banking industry in Nigeria originated during the colonial era with the establishment of colonial banks whose main purpose was to meet the commercial needs of the colonial government. The Nigerian banking system is regulated by the Central Bank of Nigeria. This top bank began operations on July 1, in 1959.
In 1892, the African Banking Corporation and the Bank of British West Africa, now the First Bank of Nigeria, were established in Nigeria. In 1925, due to some difficulties, the bank curtailed its activities, and the Bank of British West Africa Limited (BBWA) was created, which took over the activities of the African Banking Corporation.
The Bank of British West Africa Limited opened its first branch in Lagos in 1894, later that year the name of the bank was changed to the Standard Bank of Nigeria known as the First Bank of PLC Company. The Anglo-Egyptian Bank and the National Bank of South Africa spawned Barclays Bank in Nigeria. In 1948, the British-French Commercial and Industrial Bank began its activities in Nigeria, which was transformed into the United Bank for Africa.
The first domestic bank in Nigeria was founded in 1929 and was called the Industrial and Commercial Bank. The bank went into liquidation in 1930 and was replaced by Mercantile Bank in 1931. The African Continental Bank was established in 1949 as the only stable local bank after the liquidation of the Industrial and Commercial Bank. 1947 shows the emergence of an agricultural bank that has the name – Nigerian Farmers and Commercial Bank.
In 2010, the Central Bank of Nigeria re-modified the existing universal banking model, which allows the holder of a commercial banking license to engage in other non-core banking activities, either directly or indirectly through designated subsidiaries. The introduction of this scheme classifies banking licenses into commercial, commercial, and specialized/development banking licenses.
Later in this article, we will talk about the best and most reliable banks where you can trust your wealth management and invest.
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