How to get into Private Banking

edchalk

Hi,

I'm not sure if this is the right place to post but I was hoping to get some advice/information with regards to forwarding my career. I graduated from university with a degree in Economics 4 years ago & I currently work as a trainee financial advisor with a large bank - they're supporting me through my FPC's and generating a good flow of business for me. My long-term ambition however, is to make headway into the field of private banking as I fell that this would offer more interesting work and all round better earning potential.

My question is this: are the FPC qualifications a pre-requesite to working in this field (ie should I stay with the bank as long as possible to get fully qualified) or might it be better to try and get straight into a Private Banking trainee scheme now that I know what I really want to do. If I do stay with tied-advising in the bank would this be looked upon favourably by perspective employers in the private banking field, or will they be looking for different qualifications alltogether ?

Anyway thanks for your time, and any help would be much appreciated.

dunstonh

My long-term ambition however, is to make headway into the field of private banking as I fell that this would offer more interesting work and all round better earning potential.

Dont count on it. I was headhunted a few times by a couple of private banking firms and didnt like what I saw. The whole thing was similar to the tied agent side but just a lot more expensive and with more glossly literature and better sales aids. I even told one what I thought of their package and process and he couldnt answer. The earnings were rubbish as well. They were offering just under 60k a year but target based.

are the FPC qualifications a pre-requesite to working in this field (ie should I stay with the bank as long as possible to get fully qualified)

You will need those to give advice regardless of where you are.

now that I know what I really want to do.

Are you sure you know what you want to do? I have been assuming you were looking at the sales or management of private banking clients but is there another role within the private banking arm that you were looking at?

If I do stay with tied-advising in the bank would this be looked upon favourably by perspective employers in the private banking field,

Banks are the natural training ground nowadays. Thats why banks have such a high turnover. One of three things happens. 1) you are sucessful and realise that a bank doesnt pay enough and there is more to life than flogging upto 15 products 2) you are successful and get into a comfort zone earning 30k a year and become brainwashed by the bank 3) you fail and if you fail at a bank then you are probably destined to fail in any advice role.

or will they be looking for different qualifications alltogether ?

Again, depends on what role you are after.

edchalk

Hi dunstonh - thankyou for your response.

With regards to your query I was intending to get into an advisory role within private banking - I enjoy customer interaction, data analysis and sales in equal measure. I agree that the products offered by the high st. banks are quite limited, and that private banking products are also tied to a certain extent,, but what i'm looking for is exposure to higher net worth products and the interaction that comes from a customer who is interested in their money, rather than one who just wants to take your advice, sign the forms and leave.

I understand what you say about the tendancy to get "brainwashed" by a bank once you've worked there for a while, and i've never been one who becomes complacent with an employer purely because of a steady income. But at the moment I am finding the experience extremely valuable as they are paying for my qual's and im getting the exposure to the market that I wanted. Am I really barking up the wrong tree with regards to this direction or can you suggest any other routes that might be more suited to my skillset / ambition ?

dunstonh

As an IFA I can tell you that I spend a lot of time getting people out of private banking management as its expensive, not as well managed as you think and staff turnover is generally high so the clients themselves are not really happy with the service. If a client really wants discretionary investment management there are better places to do it than a bank.

On the whole, the real high net worth clients do not use the banks. They use IFAs or independent discretionary investment managers. Its probably fairer to say that the banks seem to get wealther medium net worth.

but what i'm looking for is exposure to higher net worth products and the interaction that comes from a customer who is interested in their money, rather than one who just wants to take your advice, sign the forms and leave.

So that sounds like IFA or discretionary investment management.

But at the moment I am finding the experience extremely valuable as they are paying for my qual's and im getting the exposure to the market that I wanted

Exactly what the banks are good for. You can learn your trade, build client relationships and do 18-24 months (which is what you really need for things to drop into place as the studying is geared for you to pass the exams, not learn why you do things so much. a few years experience and you start to realise why you do these things).

Am I really barking up the wrong tree with regards to this direction or can you suggest any other routes that might be more suited to my skillset / ambition ?

No you are not. You seem to realise the monotony of having a limited product range which you know isnt the best for the clients is going to get to you sooner or later. Your options going forward are really IFA or DIM. However, I dont think doing either of those for a salesforce will improve things much. Either from an earnings potential or a satisfaction level.

meester

Sounds like you want to become a financial planner