Creaky service from private banks

Talent shortages mean private banking is showing signs of strain in both Singapore and Hong Kong, says Christopher Sykes, managing director of Greater China at executive search firm Edward W. Kelley and Partners.

ìThere is increasingly a mismatch between important clients and the bankers who are serving them ñ often bankers in their 30s who havenít yet got the necessary experience,î Sykes. Tells eFinancialCareers.

Private banking is exploding as Asian entrepreneurs search for ways of putting their newly-acquired wealth to work ñ but the supply of skilled talent hasnít kept pace.
New hires to the sector are often individuals with a mid-level background in the premium or gold segments of normal commercial banking.

ìBut while these guys know about service, they often donít have sufficient technical skills,î notes one private banker based in Singapore. ìThey are just being given fancy titles and a bit more money. But they are not real private bankers and they canít provide the same standard of service.î

While certain well-known American universal banks with large commercial banking or brokerage operations are good at churning low level stuff, this is completely inadequate for the ultra high-net worth individuals who characterize ërealí private banking, he says.

ìPrivate bankers have to move on from walking their clientís poodle and start building a real business,î he says.

That means bankers with harder-edged technical skills who thoroughly understand the market are also in great demand.
By comparison, these technical specialists are more likely to come from an investment banking background, say recruiters. As a result, there are growing opportunities for investment bankers with a penchant for private banking to switch roles.

Last week it emerged that Barclays Wealth, the private wealth arm of UK Bank Barclays, has hired Didier Von Daeniken, the former co-head of private banking at Credit Suisse. Von Daeniken is expected to lead the bankís expansion (which is likely to involve plenty of hiring) in the region.

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