High Net Worth Individuals
In banking terms, high net-worth individuals or commonly abbreviated as HNWIs are classified as those who have assets in excess of US$1 million, which includes investable and liquid financial assets and excludes personal assets, real estate and collectibles. It is a classification used in the financial services industry to denote the financial net-worth of an individual or a family. These classifications become relevant for banks when identifying clients for personalized offerings like investment management, wealth management, estate and tax planning, among others. Different financial institutions and regions may classify a HNWI differently, but the most commonly quoted figure is US$ 1 million.
The United States tops the list of countries with the largest number of high net-worth individuals. Because of their high net-worth, banks and financial institutions may provide exclusive services like wealth management, tax and real estate planning, investment management and more that are not available to their other clients. Several companies have also been created to exclusively cater to the lifestyles of high net-worth individuals like yachting clubs, jewelry brokers and specialized forms of investments and insurance.