Is Now a Good Time to Start a Career in Private Banking?
Private banking has been gaining popularity as a career choice, especially in Asian finance hubs like Singapore. Compared to other front-office jobs such as M&A bankers, private banking offers lower hours and a prestigious reputation. But what can you expect in terms of salary and bonuses as a private banking relationship manager (RM)?
A recent report by Asian Private Banker revealed some insights into the compensation levels for RMs in Singapore. Junior relationship managers can earn a salary of up to $70k (SGD 90k), while senior RMs can expect a base pay averaging up to $350k (SGD 450k).
When it comes to bonuses, compensation can vary based on the revenue generated by the individual. Total compensation for junior RMs can reach $92k (SGD 118k), while market heads can earn an average of $595k ($765k).
What are the Best Paying Banks for Private Banking Jobs in Singapore?
Similar to investment banking, boutique firms tend to offer higher compensation for star relationship managers compared to larger financial institutions. While big-name banks like Standard Chartered may not pay a premium for RMs, boutique banks like LGT, EFG International, and J. Safra Sarasin are known for their competitive compensation packages.
Some banks, like Julius Baer, are considered ‘semi-boutiques’ and offer a middle ground between boutique and large banks in terms of compensation and branding.
Boutique banks are known to offer higher base salaries and bonuses to attract top talent in the industry.
How to Get a Private Banking Job in Singapore
The hiring market for private bankers has evolved in recent years, with a shift towards candidates with high assets under management (AUM) and a strong client base. Commercial bankers and investment bankers looking to transition into private banking may face challenges, as banks are now more interested in the revenue potential and client relationships of candidates.
Effective communication skills with clients have become increasingly important in private banking, despite advancements in technology like AI. While AI can automate certain tasks, the personal touch of a relationship manager is still valued by high-net-worth clients.
Overall, the private banking sector in Singapore offers lucrative opportunities for talented individuals with a strong client base and revenue-generating potential.
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