Private bankers manage the portfolios of high-net-worth clients with investment and diversification needs. They expand their customer base through various strategies, monitor clients’ financial activity, and develop sales and marketing plans to increase bank revenues. A bachelor’s degree in a financial field is often required.
A private banker is the person in charge of managing the portfolios of banking clients with above-average net worth in the form of liquid assets, as well as investments in stocks, bonds and real estate. It distinguishes itself from a regular banker in that its focus is primarily on clients with investment and diversification needs rather than clients with more general needs such as mortgage and equity loans and DC and savings accounts.
Often, a private banker is referred to a client of the bank manager or managers of other financial services departments within the institution. In these cases, she is traditionally expected to explore the client’s needs, determine their current and projected expenses and income, and recommend investment alternatives to increase their wealth and financial stability. These customers can be new or established whose financial needs have changed.
In addition to providing exemplary service to these customers, it is generally expected to expand its customer base through its own efforts. This typically involves a combination of strategies. She can search for potential private bank customers from an existing customer base, or obtain referrals from other customers or financial industry contacts. Another common tactic used to grow your private banking pool is to screen new candidates through magazines and online sources that provide contact information for the wealthiest and most successful investors and shareholders in the community.
After establishing its client base, the private banker is usually required to personally monitor the financial activity of each of its clients. Generally, it is required to monitor its stock activity and remain well-informed about fluctuations in the financial sector, such as interest rates, corporate acquisitions and restructuring, and applicable market trends. If substantial changes occur, a private banker is expected to speak with their clients in a timely manner to discuss strategies to protect their investments.
In addition to looking after its clients, a private banker is generally expected to develop sales and marketing plans to increase bank revenues. She is expected to create departmental operating budgets and work with other departments to establish mutual goals that may involve cross-selling products and services. Keeping abreast of banking industry policies and procedures is also important to the success of a private banker.
A bachelor’s degree in a financial field is often required for this position. Some financial institutions may promote applicants without in-house degrees if they demonstrate exceptional competence and promise. Certain banking services, such as financial planning, investment management and stock brokerage, often require specific licenses granted by industry or government regulatory agencies. Experience in banking or financial services is highly desirable.
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