What's next for senior private bankers in Asia private banking business?
I had the privilege to have an interview with a senior private banker whom previously set-up his very own External Asset Management (EAM) company. With the robust economy, I wish to understand how best can I look out for candidates in similar positions. Here are some useful excerpts:
1. How is the consolidation in the private banking industry affecting hiring in Asia?
The days of sign-on bonuses and higher salary are things of the past. Consolidation is the realignment of salary packages and sieving through gems amongst the rubbish.
2. What is the lure of setting up your own EAM/IAM/FIM or joining an EAM/IAM/FIM platform for senior bankers?
To be independent and truly be on my client’s side would give me plenty of opportunities to better serve the needs of my clients. This would then determine if the banker would dictate how much his/her salary rather than the Bank deciding on his/her salary.
3. What are the risks and rewards in joining an EAM platform?
There are not many risks involved when you have strong relationships with your clients and in addition, we are able to provide a better platform for them. On the other hand, if the relationship is lacking a stable foundation, a possible issue would be the onboarding of clients because the EAM business model is different compared to a regular private banking platform.
Rewards are subjective definitely. However just to name one - it would be the flexibility to deal with many established institutions based on their capabilities.
4. Will there be more growth in the EAM/IAM/FIM industry in Asia in the next 5 to 10 years?
Yes, there will be more growth in the EAM industry in the next 5 to 10 years as compared to private banks.
5. What do you look for in a client adviser?
Key qualities would include the client advisor being well-versed in their roles and have strong relationships with senior private bankers. A reputable and respected client advisor definitely tells clients that they have a solid grasp of their assets under management (AUM).
6. What is your mantra at work?
Looking at ways to make money for the clients and not be confined to what the banks want to sell or pushing products to clients. Stay focus on the right value and take good care of my clients.
7. What is your key advice to clients now?
You do not have to be leveraged up or have a high-risk trading profile in order to get double digit returns. As an independent advisor, I can advise other products that could give you similar double-digit returns without becoming a high-risk trading profile. These banks do not talk about these products because the bankers do not attain as much value from them. In addition, a good advisor has his/her interests aligned with the clients’ interest because his/her performance is in relation to the clients’ money.
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