Where to now for Private Bankers?

6th March 2009
Written by Nick Hughes, specialist in Wealth Management at WH Marks Sattin Singapore.

This year has already seen a dramatic slowdown in the movement of senior private bankers in Singapore, with a number of foreign banks cutting under-performing bankers and non-critical staff.

The benchmark for hiring private bankers has risen, with many bankers requiring a minimum current AUM of US$200m, and the ability to generate at least US$40m of new business within their first year.

This has resulted in many bankers looking to move away from private banking as overall levels of wealth shrink across Asia. But the difficulty for them is finding positions within new industries in the current climate.

Private bankers often tend to have an abundance of soft skills and are highly presentable and personable. They are therefore well suited to service-driven roles, and this is where many of them will move to, with projects such as the Integrated Resorts currently hiring extensively.

Many private bankers are looking to move back into the priority banking environment that they have come from, or into client-service roles in the back and middle office.

The major issue that many private banks currently have is too many bankers with insufficient assets under management.

This is leading to cuts in staff and colleagues inheriting the accounts of former bankers. However, at the same time, many banks would still consider hiring a senior banker with an impressive portfolio of clients, should he or she express an interest in moving.

I would advise any banker looking to move at present to really consider the reasons behind the move: what is the value-add to clients? Does the move really make sense?

If the banker is not truly convinced that the move is for the right reasons, then he or she will struggle to convince clients to follow. If you have spent a considerable amount of time with your current employer, you need to really believe that moving firms is the best option for you in terms of stability, career development and a strong name to offer to your clients.

Salaries will be at best the same as your current package, with many bankers having to take pay cuts of up to 40%, or accepting a more incentivised offer (starting with a lower basic salary and increasing as certain targets are met).

Summarised business plans should also be prepared to demonstrate how you can develop your business and add value in the current market. Also, the ability to be proactive and entrepreneurial is widely sought after at the moment.

For bankers looking to move to Singapore, relocation packages have also been trimmed because banks will hire locally if they can and it is widely believed that gaining an employment pass in Singapore has now become tougher.

Capitalising on the current climate are the boutique banks which have not been as badly hit by losses and are able to expand and attract senior bankers, despite having a limited product range.

They are seen as a safe and attractive option for high net worth clients and many of them are growing, particularly the European banks, who are still transferring substantial money from their clients with accounts in Switzerland.

This year will be a tough one for wealth management in Asia, however many new and diverse opportunities are being created and this is where initiative, strength of relationships and hard work will determine who survives.

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