Summary: The aim of this paper is to present the basic theoretical concepts, clients and current global practice of private banking. Research on the topic of private banking in Serbia is rare and it is not surprising that bank clients and even bank employees are not familiar with it or have a wrong perception of the concept. This paper clarifies doubts and misinterpretations of the terms and related concepts used in the private banking industry. It also provides an overview of the typical clients, taking into account geographical distribution. The focus of banks is shifted towards the Asian market where the new model of private banking is emerging. Switzerland is still dominant in the private banking segment, although significant changes occurred after the liberalization of capital flows in the developing countries and subsequently as a result of the regulatory changes due to the global economic crisis. In Serbia, private banking is in the embryonic development stage. Clients who meet the criteria for entry are rare, while the financial market is shallow and illiquid with little opportunity for profit.