Many private bankers supplement their initial education with a master’s degree or even a P. H. D. in finance, business, or economics. This way, you will not only be prepared for your job but it will also make you get used to what you are doing. An undergraduate degree is not a legal requirement, but may be the requirement of the bank for banking officers generally.
Talk to professors, a university career center, and anyone you know working in a financial field about the possibility of doing an internship. Many private banking firms and other financial companies already have established internship programs, so you should check with these directly as well.
The Wealth Management Institute (WMI) offers the 10-week Wealth Management Private Banking Programme and an associated certificate. This course is comprised of several sessions covering topics such as understanding the needs of business owners, private equity and hedge funds, estate planning, and asset allocation. The Globecon Institute offers a nine-month course and certificate in “Private Banking and Wealth Management” as well as a three- to four-month course and certificate in “Operations in Investment Banking and Securities Markets. ”
The Series 6 license permits private bankers to advise clients on “packaged” products such as mutual funds, annuities, and trusts. The licensed is awarded by passing a 135-minute exam on investing, regulations, and ethics. In order to apply for the license, you must be sponsored by a firm that is a FINRA member. The Series 7 license allows private bankers to advise clients on individual securities such as stocks and bonds. The license is awarded by passing a 6-hour exam on securities trading. In order to apply for the license, you must be sponsored by a firm that is a FINRA member. The NASAA administers the Series 63 license that every state requires private bankers to have in order to advise clients on investments. The license is awarded by passing a 75-minute exam. You must have the Series 63 license before you can apply for the Series 6 or Series 7 license. The NASAA also administers the Series 65 license, which permits private bankers to advise clients for an hourly fee rather than a commission. This license is awarded by passing a 180-minute exam.
Start by working with any HNWIs that you know. Have lunch with them, try to get invited to events they might attend with other HNWIs, etc. When you meet HNWIs, make sure to get their contact information (including social media profiles), and share yours with them. Once you form initial connections with HNWIs, begin asking them about meetings or informal events like a round of golf. Use these as an opportunity to get to know each other better. Be present at any events that HNWIs are likely to attend, such as fundraisers. These are opportunities to meet potential clients, but also to learn about what is important to them. Be firm about how you can help HNWIs with private banking services, but don’t be pushy. Show genuine care for their work and interests.
If you do have a list of potential or current clients, ask them about whether or not they would be willing to have you continue advising them if you moved to an existing private banking firm. If so, mention this to firms that interview you or that you approach about a job.
Keep things professional. If you have social media accounts with public or semi-public profiles, make sure there is no content on them that you would not want clients to see. A general rule of thumb is if you would not share it with your grandmother, it should not appear on your social media profile. Focus on forging worthwhile, meaningful relationships rather than on increasing the sheer numbers of your followers, friends, or connections on social media. If you intend to use your social media accounts for professional purposes, then those relationships should be professional. If you have social media accounts and intend to use them professionally, then it is important to regularly check and update them. If an account has not been updated in awhile, it will look odd, and if you don’t check it regularly, then you might miss out on important communication or potential connections.
You can send out resumes to apply for any posted openings in or related to the private banking field. However, you can also communicate with institutions that aren’t currently hiring. Let them know you are working in or looking to enter the field. Give them a copy of your resume, and ask them to keep it on file in case they hire in the future. Showing initiative like this can be beneficial and make you a memorable job candidate.
Personal banking is not a direct or obvious path to enter private banking. While serving in personal banking, you will still need to focus on networking with HNWIs who can potentially become your clients. In addition, you will need to aggressively seek any opportunities to move out of personal banking into private banking. Keep sending out resumes and holding informational interviews, let supervisors at your current institution know that you are looking to enter private banking, and keep offering to work with any HNWIs that you know.
Privilege banking can offer more opportunities to meet or network with HNWIs, so actively seek out these individuals while working in the field. In addition, continue to send out resumes and otherwise seek jobs in private banking. Stress how the skills you have developed in privilege banking will make you an effective private banker.
If you are good at your job, your firm may eventually offer you some clients to service, or you may be able to take over the position when one of the firm’s private bankers retires or leaves.
Make sure that your clients can reach you at any time, and in many ways (phone, text, email, etc. ). Be prepared to work long or odd hours in order to work around your clients’ schedules. Private bankers will benefit from knowing about their clients’ personal lives, family, businesses, etc. This knowledge can help you provide services and products that are tailored to a client’s specific situation. Be able to engage with clients about the world in general—current events, hobbies, politics, etc. HNW clients often want to see that their private bankers are well rounded, knowledgeable, and trustworthy, since that implies that they will provide excellent service. Don’t be surprised if your clients ask you to do things that may not seem directly related to financial matters. This may mean they ask you to discuss a deal over a round of golf; it might also mean that they ask you to pick up their pet from doggy daycare so that they will have time for a meeting. Remember that your clients are your number one priority, and be flexible in meeting their requests.
Understanding the whole range of investment products: stocks, bonds, mutual funds, exchange traded funds (ETFs), etc. Having an in-depth knowledge of domestic and global markets, business trends, and investment strategies. Making superior buy and sell decisions of investment products, based on the private banker’s analysis of markets and trends. [23] X Research source Determining how to allocate a client’s assets among different investment products in order to ensure that the client’s investment or personal goals are met. Working with clients to explain the risks of any investment, and how to recover from any losses.
Understand the different components of an individual’s wealth and estate, which may include retirement accounts, insurance packages, annuities, real estate, personal assets (such as homes, vehicles, art or other collections), etc. Advise your clients with both short-term and long-term goals in mind. Clients are interested in finding ways to make their wealth grow (short-term goals), but also think about how to maintain it for retirement, to pass on to descendants, etc. (long-term goals). Develop a flexible strategy for managing your clients’ wealth, since their needs and goals will change over time. [25] X Research source For instance, you might advise a client to invest more aggressively when they are younger, in order to take advantage of opportunities for growth; as the client ages, however, you might advise them to stabilize their investments in order to protect them.
Private bankers may advise clients on financial aspects of wills and choosing an executor. [27] X Research source Since different assets are subject to different regulations and strategies, private bankers assist clients in planning for each asset class. For instance, you may help a client decide to leave real estate as an estate for heirs, while utilizing other investments as a philanthropic gift. Many HNWIs plan to create trusts for their dependents, and a private banker will assist in the creation and management of these. Charitable gifts are another common part of estate planning, and private bankers are called upon to help clients select and structure these. [28] X Research source Estate and gift taxes can be substantial, and so a major part of a private banker’s job can be helping clients plan to minimize these costs. [29] X Research source Estate and trust plans will have to be reviewed and updated regularly, since clients’ needs and circumstances change over time.
The salaries of private bankers working with established firms can vary widely, with estimates ranging from $30,000 to well over $100,000. Much of a private banker’s salary is determined by the value of AUM. In order to succeed in the long run, private bankers must always be thinking about the needs of their current clients as well as attracting new ones. [31] X Research source
