How do you become a Private Banker?
To be a Private Banker, you will need a book size of $100 Million to $300 Million. The book size refers to financial assets or commonly known as Assets Under Management (AUM). Most Private Banks denote the dollar amount in USD or the base currency of where the Private Bank is operating in.
Examples of AUM:
| Asset Type | Examples |
| Cash Equivalents | Deposits, Money Market Funds, Treasury Bills |
| Bonds & Debentures | Government Bonds, Corporate Bonds, Credit Notes |
| Equities | Stocks, Preferred Shares |
| Funds | Unit Trusts / Mutual Funds / Hedge Funds |
| Private Equity | Equity / Funds of Private Equity |
| Structured Notes | Structured Investments |
| Unleveraged Derivatives | Options |
Some Private Banks may include leverage positions as AUM:
| Derivatives | Futures, Forwards, Swaps |
| Credit | Loans for Investments, Real Estate,Businesses , Aircraft , Arts , Antiques |
List of Private Banks in Singapore
$100 Million to $300 Million is a wide range. How is the book size calculated?
There is no one-size fit all strategy as this is a high net-worth client segment where their wealth size rapidly changes according to economic development. Some private banks are new in Singapore while some may already have a long established presence. Some private banks pursue a quick growth strategy while some go for gradual business development. Below is an illustration of required book size for a Private Banker. Most private banks set the book size to be built in 2 – 3 years.
| Types | Conservative | Standard | Aggressive |
| New Business | USD 50 Million | USD 100 Million | USD 300 Million |
| Established Business | USD 100 Million | USD 200 Million | USD 300 Million |
| With Large Database | USD 200 Million | USD 300 Million | USD 500 Million |
| Ultra High Networth | USD 300 Million | USD 500 Million | USD 1 Billion |
Source: Caproasia Intel
*If you are an existing Private Banker or in a related roles, you may have a non-solicitation clause (for a period of 3 – 12 months) in your employment contract to establish business contact with your existing client base. This prevents you from getting your existing pool of clients to the new private bank. In addition, you should likely be bound by banking secrecy laws.
Why only $50 Million book size? That is not usual.
Some private banks pursue a strategy of grooming new junior Private Bankers. Since an important skill-set of a Private Banker is networking, relationship management and business development, they are always looking to know more influential and wealthy individuals. These group of clients have fast-growing wealth.
Example:
An entrepreneur or businessman who is worth USD 5 Million may be worth USD 50 Million the next year. Jack Ma became one of Asia’s Richest Man with a net worth of USD 26 Billion. His AUM alone is a quarter of leading private banks’ AUM in Asia.
Why not $50 Million book size for everyone?
Private Banks are very expensive to run. Private Banking clients are highly demanding and requires complex financial solutions, often on a global requirement and outreach.
The scale to run a profitable and sustainable private banking business is extremely important. After all, private banks are trusted financial institutions that are supported by wealthy and influential individuals. To have a rocky financial standing and relationship means infuriating wealthy & influential individuals who may not select the bank in their business dealings. Neither does a Private Banker wants to join a bank with their private banking units at risk of closure every year.
What if you don’t have a book size but wants to become a Private Banker?
There is a huge demand for Private Bankers in Asia, as wealth is growing at a tremendous pace. However, the lack of qualified skill-sets and an adapting wealth management industry continues to create a high entry barrier or a non-sustained career for new Private Bankers.
Read More:
- What does a Relationship Manager do?
- Reality Check I: So you got your new job as a Relationship Manager. What is next?
- Reality Check II: So you got your new job as a Relationship Manager. What is next?
The good news is since there is a constant demand for Private Bankers, some banks have huge pool of clients awaiting to be upgraded to Private banking. This presents opportunities to enter into Private Banking without a ready portfolio of clients.
Examples of ways to become a Private banker without a book size:
- Join Private Banks with Private Banking Wealth Management Trainee Program
- Become a Private Banker to provide only basic banking services to their clients
- Mid-Career candidates with access to high net-worth clients
- From a well-connected social circle or wealthy family
- Understudy to a Private Banker leaving or retiring in the next 2 to 5 years
- Be an Assistant Private Banker
If you are close friends with Jack Ma, Jay Chou, their children or you are the Regional CFO for Wassap, you deserve an interview opportunity
How do you actually get into one?
Many existing Private Bankers in Asia had been in Private Banking for many years. They were previously Management Associates or Assistant Private Bankers, where over the years, they progress into their role as Private Bankers. That used to be the Private Banking career process. Before the year 2000, Private Banking was a low-key affair in Asia, providing only basic banking & investment services.
This has changed since early 2000 where Private Banking & Wealth Management in Asia had grown into a complex one. Today, the job as a Private Banker is one of the hottest one in Banking & Wealth Management. So competition is extremely keen. You can apply by:
Direct Approach:
- Know a Private Banking Head, Team Leader or Private Banker and get hired directly
- Get a referral into the Private Bank through someone you know
- Apply through a Private Banking Headhunter
- Apply to Private Banks
- Apply through a Jobs Portal
Indirect Approach:
- Join a Private Banking Wealth Management Trainee Program
- Become a Priority Banker
- Become a Priority Banking Team Leader
- Become an Investment advisor or Treasury advisor
- Become a Assistant Private Banker
- Born in a mega-wealthy family
- Be well-connected to wealthy & influential individuals
What is the screening criteria?
The screening criteria is very stringent. Most applicants do not qualify because they do not have the book size or the potential to build the book size. This is the most important criteria.
More criteria:
- Book Size / Portfolio Size / AUM
- Sales & Revenue
- Client & Portfolio Management
- Banking & Financial Knowledge
- Ability to deal with pressure (financial markets and individual targets)
- Soft Skills (Communication, Confidence, Relationship Building, Networking)
- Cultural Fit (The Company, the Team, the clients)
- Regulatory adherences and certifications
- The potential to do all the above
Factors to consider before Applying
Getting into private banking is a major career decision. You will be focusing only on managing assets for the wealthy and influential clients. There are many areas to consider. Some questions to ask?
- Are you able to bring the portfolio of clients?
- Would your clients’ wealth grow?
- How many of them will follow you?
- Are you able to grow your contacts & network?
- Are you able to convince clients to open the private banking account?
- Are you able to get them to invest in the private banks products & services?
- Which private bank is right for you?
- Which private bank is suitable for your clients?
What Private Bankers Say?
“ Private Banking has become increasingly complex today. It is not an easy role as we adjust to the demands of clients today in Asia ” DBS Private Banker
” Becoming a Private Banker was a difficult decision. It is a long-term career path in a very challenging banking & Asian environment. I was fortunate to be able to go through the 12 months Associate Program. That gives me a better understanding before my role begins. – Wealth Management Asia Pacific. ” UBS Client Advisor
Related Articles
- What is a Private Banker?
- How do you become a Private Banker?
- Why 50% of Private Bankers quit in 21 months?
- 12 Reasons why most clients do not give Private Banker AUM within 6 months
- How do Private Bankers acquire new clients?
- 5 Shocking deals that shake-up Private Banking in Asia
List of Private Banks in Singapore
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
