Alan D. Hilliker Practice Group Leader, New York
Private banking has changed dramatically over the past two years due to tougher regulatory requirements and the shift away from international offshore banking towards more compliant and onshore-oriented offerings on the part of many private banks. Turbulent financial market conditions have also put them under significantly higher pressure from their clients. Banks have consequently faced increasingly complex challenges from a regulatory and risk management perspective, as well as on a customer and operative level.
Private Banking nevertheless remains a highly attractive arena. This is primarily due to the rising number of high net-worth and ultra-high net-worth individuals worldwide, as well as the growing global community of affluent individuals set to join them. For banks a major advantage of the private banking business is that it requires comparatively little capital.
What competences are needed?
Competition for highly-qualified private banking leaders is intensifying as outstanding individuals become increasingly essential to success in this segment. Today’s wealth managers need greater leadership competences than previously necessary combined with an enhanced track in operational excellence. In addition to experience in front office management and a strong commercial orientation, private bankers must also be able to identify the lucrative opportunities remaining within an increasingly complex regulatory environment dominated by higher risk management requirements.
This calls for professionals with international experience, a global outlook and a deep understanding of financial markets worldwide. Yet the growing number of banks operating on a global scale is rapidly shrinking the available top talent pool. Competition is fierce both on a local level and internationally as new, strong players emerge in Asia, for instance.
How can Egon Zehnder support the Private Banking industry?
Egon Zehnder’s global Private Banking Practice segment consists of a highly professional team of 30 experts who partner with clients in all sectors of the private capital industry to address hiring needs, help assess existing management competencies and to support advisory boards. Our consultants draw on Egon Zehnder’s longstanding experience in Europe, Asia and North America for many years and can offer key insights into these markets.