How to Make the Money Rain in Private Banking?
A combination of successful investment and relationship management is what makes a good Private Banker.
In the Private Banking industry, you have to work hard on attaining new clients, but also keeping your existing clients “happy”. Getting inflow of asset is difficult but managing those assets already in your bank (or your book) is equally tricky. As a Private Banker, you would deliver as promised or even overdeliver to retain the clients. How does it really work? Below, you will see how value delivery applies to both investment and relationship management to keep the clients satisfied and pleased.
- Investment Management - Diverse Range of Financial Products
The edge of Private Banking is the diverse range of financial products it offers - structured and sophisticated products (e.g., Accumulator has been one of the all-time most popular structured products among clients). With that being said, clients would expect you to have in-depth knowledge of complex products, and you will guide them on with your market views and their current portfolio performance. To do that, an investment portfolio questionnaire would assist you in understanding the client’s investment suitability and objective. At the end of the day, your client would not wish to have amateurs handling their hard-earned money no matter how “close” or “good” of a personality you have. Especially at volatile or bearish times, there will be cases of margin calls as most Private Banking clients are leveraged to some certain extent. Those are the times to show if you are a good Private Banker by managing the client's risk and return. Therefore, private bankers constantly conduct sensitivity and scenario analysis of their client’s portfolio to ensure when things go south, you can still protect yourself and the bank.
The impression of professionalism and trust takes months or even years to build, but only seconds to irreversibly destroy.
- Relationship Management – You are an entertainer but a professional one
Relationship management is constantly being perceived as a private banker's perks because of the fancy and luxurious events that you get invited to through your clients. You also get to meet the elites from different industries. However, bear in mind that relationship management is still part of your job, and your enjoyment should not be the priority at those events. Some bankers do end up being friends with their clients, but they would continue to uphold their professional image in any circumstances because the impression of professionalism and trust takes months or even years to build, but only seconds to irreversibly destroy. Such notoriety will not only affect you individually but even on the bank level. Therefore, be prepared that you will get to enjoy that high-life, but you are not there just to "enjoy".
Ace Career Program
The Ace Career Program is the only customized structured career coaching program in the market today to empower undergraduate students to break into Investment Banking, Sales and Trading, Private Banking, Asset Management, Commercial Banking, Retail Banking, Hedge Funds, Private Equity, Consulting and Auditing.
Get in touch with Ace Careers now!
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without Ace Careers' express written consent.
All information contained herein is proprietary and is protected under copyright law.
© 2022 Ace Careers. All rights reserved.