AU
Asian private bankers look to find their niche
19 June 2008
Smaller might be better when it comes to finding a fulfilling private banking role. More flexibility, less sales pressure and fewer country constraints are key draw cards of working for a niche player in Asia.
Reto Isenring, Singapore managing director at VP Bank, which also has offices in Hong Kong, says relationship managers (RMs) at big banks often become “product sales machines”.
He tells us: “Many of them get tired of that and want a new challenge. We offer people a more entrepreneurial, less administrative approach. We don’t want our RMs to be constantly feeling sales pressure, we want them to focus on advising clients.”
Alice Liu, director at Pelham Search Pacific in Hong Kong, says some candidates prefer smaller banks. “Things get done quicker, you are closer to the head of private banking or CEO, and there’s more freedom and flexibility. You’re not divided into geographical teams like you are in the larger banks.”
This ability to work across countries attracts RMs to VP Bank, as Isenring explains: “We don’t put them into geographical silos and say ‘Nice to meet you, forget your clients in Hong Kong.’ We are flexible as long as it makes economic sense.”
And the small guys pay well too. Liu says in Hong Kong, niche private banks often compensate for their lack of a big brand name by offering 15-20% more dollars than global firms.
Just remember to bring your assets under management (AUM) with you if you want to go niche. Pernille Storm, director of banking and financial services at recruiters Hudson, comments: “Smaller banks in particular want candidates with sizeable AUM. They don’t have big legacy portfolios of clients to give to new RMs, and most don't wish or have the resources to train, like UBS or Credit Suisse, for instance.”
Liechtenstein-headquartered VP Bank received the go-ahead from the Monetary Authority of Singapore this month to start a private banking operation in the Lion City. Isenring says it plans to double its current 13-strong team within the next year. The firm is looking for relationship managers and assistant RMs, and will also beef up its trading room with advisors and execution dealers.
