As someone who wishes to venture into private banking, any sifus who are already in the industry are able to give some insights?

From my understanding, private banking = handling high-net-worth individual = more concentration on each client = more into maintaining long-term client relationships. and that's from the private bank's or relationship manager's perspective.

What about the grunts a.k.a. analysts in private banking? Do they do the usual jobs just like personal banking?

It's not like personal banking services. PB mainly focus on providing solutions for clients and other value added services. must have vast knowledge in the financial world as HNWI have higher expectations

^ Agree with jonlee. Generally I would say Private Bankers are split into two, the RM's and the analysts/fund managers. RM's of course manage the relationships and sell products with the HNWI, which is a totally different ballgame than your average Tom Dick or Harry out there. Analysts/fund managers aim to generate positive returns as well as recommend products to clients.

I am not sure about Malaysia, but there should also be a difference between High Net Worth and Ultra High Net Worth Individuals.

Edit: PB's would occasionally work with IB's too, because PB customers would want to purchase certain IB products (shares during IPO for example)

This post has been edited by Buyalotforgaming: Nov 23 2017, 09:29 PM

I think the line between UHNWI and HNWI is just the threshold of their assets, as the name suggests. lol. and maybe the banks have certain ways to deal with them differently, e.g., assign relatively more resources for UHNWI clients, etc.

I am more interested in RM - besides the necessary technical financial knowledge (which I'm sure the bank will train you), you mentioned it's "a totally different ballgame", can you elaborate on that? I suppose there will be lots of clients' events to attend to build the relationship, like after work hours but that's just my assumption.

Apart from the extensive technical knowledge, RM's probably need to have the "know how" of how to deal with these HNW people. They can actually come from very different backgrounds, those who are humble and arrogant, those who are very educated and those who are not, for example. There was this one time I was browsing a Mercedes exhibition at a mall. Then this uncle comes (he's a datuk iirc) and asks how much the price of the car was. After the saleslady told him he said "oh...so cheap?" then told the lady off for not having more expensive models displayed. How would you deal with such a person if you were to be his RM?

And yes...you are on call 24/7 to these people. Sometimes help them secure things like VIP tix to f1 race, etc etc etc. You won't be dealing with these kind of people in PB at all.

This post has been edited by Buyalotforgaming: Nov 24 2017, 10:32 PM

By "PB", I assume you are referring to personal banking? Cause private banking is PB too.
And you said "help them secure things like VIP tix" as an RM, is this just an anecdote of yours or you really know it for a fact? Those rich people have better things to with their wealth managers than this, right?

Yep, personal banker. My bad.

This VIP tix is something I heard from my uncle. But I'm pretty sure if you step into Private Banking, you really will go out of your way to please your clients. So if they want VIP tix or something and you are in a position to help them, would you not?

Thanks for sharing your experiences, guys!

If you don't mind my asking, what is the mode of compensation in private banking? Is it typically just salaried work, is there a scenario where you receive compensation on an hourly basis, or is there perhaps say, a commission that is taken from interest income or capital gains, or from the total revenue generated by the bank?

I've seen major banks recruit people into private banking before, and they seem to look for people who have established connections, i.e. people who had clients from a previous bank or people who have spent time networking - Do you know if there's a no-compete situation outlined in the employment contracts that banks issue, or whether such clauses would be sustained in court?

Further, what is the basis for HNWI's to use private banking? Is it typically just the appeal of the concierge service that draws them, or does private banking offer stuff like more favorable rates etc?

Lastly, I get that venturing into private banking requires work experience in an actual bank, but I'm wondering what specific skills or corporate phrases might be useful to know in this industry.

Love private banking
Regional branch manager pay special attention to u during dining event