Banking, Wealth Sector In Ferment – A Talent Management Overview

Tom Burroughes

12 June 2023

When a study from the world’s largest economy – the US – shows that about a quarter of financial advisors expect to retire in the next 10 years, that’s a wakeup call.

That data came from in a survey of 385 financial advisors from across the industry. This publication has been familiar for some time with talk of how the average age of advisors is rising. Well, with all this talk of multi-trillion dollar generational wealth, this industry needs fresh blood.

We’ve already reflected on to what extent artificial intelligence (AI) and other forms of technology might boost productivity and ease strains. Firms have specific approaches – some “grow their own” more than others. And when banks get into trouble and are taken over – as in the case of , an executive search firm in the UK, said.

“The employment in the wealth management market is getting busier. There is expansion in some of the key players on the street which helps fuel movement across the entire market. The demand is very much split across the bigger names through to Tier-2 banks and independent wealth managers,” he continued. “The leading demand is and will most likely always be for private bankers with exciting books of business that were built up directly by the banker (ie not inherited) and the banker who has a network…the person who does not need the branding above the door.”

At UK private bank we work with are actively looking for young professionals, in associate or junior roles where they can develop careers in the industry.

In some markets it is challenging finding younger candidates, in other markets there are good numbers of young wealth management professionals,” Bray said.

It appears that in the currently hot area of family offices, demand is outpacing supply. Consider data that was issued a few days ago from Agreus Group, the consultancy, and KPMG Private Enterprise – part of KPMG. It showed that 80 per cent of professionals working in family offices get a performance bonus that can be more than 200 per cent their basic salary. And 58 per cent secured a salary rise last year amidst higher inflation. With locations such as Singapore home to hundreds of new family offices, for example, there's going to be a talent crunch.

Tech savvy
This news service has noted how tech savvy, breadth of experience – even drawing candidates from fields such as the military – are important considerations today. Even for those wary about the ideology of some of it, the trend of diversity, equity and inclusion (DEI) also speaks to the brute fact that the recruitment net must widen because clients expect it.

Steve Bowyer, a talent acquisition manager at UK-based across Europe, although banks have found ways to get around this. Seeing clients face to face is as important as it always was, clients prefer in-person contact and appreciate the efforts made by their bankers, instead of over Zoom. This goes for local onshore bankers to international bankers based in one region covering clients in another.”

Diversity
Another big theme in recent years has been that wealth management must be less “male, pale and stale.”

Bray said there have been changes.

“Many wealth management firms have made progress in the past five years in hiring more women, especially senior roles and leadership positions. Most of industry will tell you it is still far from ideal but many of our clients have made efforts to improve in this area in the past five to seven years; they’ve deliberately worked to improve and add the number of females on their teams in senior roles and `seats at the table’. Most firms want more diversity with non-white professionals (male or female), though it is sometimes challenging to find qualified candidates in some markets."

Bowyer said the diversity issue is crucial.

“This is a very important topic, but one which must be addressed in a balanced way, to avoid `tokenism’ and truly create an inclusive, welcoming culture. The best candidate should ultimately get the job, regardless of the position. Firms recruiting individuals just to meet gender equality targets for instance run the risk of not creating a culture which is inclusive of all. The overall culture must be transparent, positive and striving to continuously improve,” he said.

“At Kingswood Group, we have taken steps such as unconscious bias training, particularly in the recruitment of new colleagues, to ensure we address such issues. As the organisation has grown, we have also looked at our HR policies and people strategy to ensure that we have the best possible environment for our culture to develop and mature,” he said.

Finally, what makes a good wealth manager?

“Interpersonal skills and life experience counts for a lot. It’s evident that there will be many bankers suitable for each client. There has to be an element of trust and a bond when a client is entrusting their hard-earned wealth to the banker and the bank,” Dogilewski added.