Private banks open floodgates to new talent
Private banks and wealth managers are hiring new bankers across the board, with some eyeing hundreds of new staff, many former investment bankers, over the next twelve months.
Cath Tillotson, a partner at consultant Scorpio Partnership, said the market is so swamped with talent that private banks are taking on former investment bankers.
She said: “Private banks are all taking advantage of the current turmoil to pick up the top talent – many hires are former investment bankers with strong product knowledge.”
She said the growth would be global. "Bankers are targeting Asia, and this is likely to continue next year. In fact, some private banks have already announced plans to hire several thousands of relationship managers."
Swiss bank Credit Suisse plans to hire at least 620 relationship managers by the end of next year, with a high proportion in Asia. The bank currently has 3,480 relationship managers across the world and in the third quarter of this year hired 110 new managers.
Macquarie’s recently established Asian private banking division will exclusively target the ultra-rich segment and will recruit another 30 to 35 client advisers in the next three to five years.
Barclays Wealth said: "We continue to hire through the current market conditions on a selective basis, and where there is a clear need. We are predominantly focusing our efforts on the expansion of our client facing private banking teams in India, Asia, Europe and now the United States post our acquisition of Lehman Brothers."
300-year old UK private bank Coutts said although it is not actively recrutiing at the moment, it is not making any jobcuts and will replaces movers as quickly as possible. The bank just announced new offices in Cheltenham and Exeter.
Morgan Stanley's wealth management arm said it is still hiring selectively, particularly in Europe and the Middle East.
Deutsche Bank private wealth management is hiring and its UK private client subsidiary Deutsche Tilney is recruiting actively.
Swiss bank UBS said it is still hiring. SG Hambros, the private banking arm of Societe Generale, is eyeing growth. EFG International, the Swiss private bank, is hiring actively.
Merrill Lynch wealth management are still hiring financial advisers in the Europe Middle East and Africa region.
Private bank Pictet is looking to hire relationship managers in London and the Middle East.
London-based headhunters agree the war for talent in private banks has never been fiercer. According to a source, some headhunters and HR departments are now sorting large piles of applicants into institutions rather than sectors, with those coming from the big name investment banks at the top of the pile.
But the hiring frenzy is causing a few concerns.
Tillotson said: “Former investment bankers will have to be retrained and some are concerned that the investment banking skill set is too different to the private banking model. Investment banking doesn’t have a great reputation right now, which may worry some clients.”
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