A private banker is in charge of managing the portfolios of bank customers with above-average net worth, which include liquid assets as well as stock, bond, and real estate investments. She differs from a typical banker in that she focuses on clients with investment and diversification needs rather than those with more general needs like mortgage and equity loans, as well as CD and savings accounts.
A client is frequently referred to a private banker by the institution’s bank manager or managers in other financial services departments. She is traditionally expected to investigate the client’s needs, determine their current and projected expenditures and income, and recommend investment options to help them increase their wealth and financial stability in these situations. These customers could be new or existing customers whose financial needs have changed.
She is expected to expand her client base through her own efforts in addition to providing excellent service to these customers. This usually entails a combination of tactics. She could use her current customer base to find private banking prospects, or she could ask for referrals from other customers or financial industry contacts. Another strategy she employs to expand her private banking group is to sift through new candidates by scouring journals and online databases for contact information on the community’s wealthiest and most successful investors and shareholders.
Once a private banker has built up a client base, she is generally required to keep a close eye on each of her clients’ financial activity. She is frequently expected to keep track of their stock’s activity and stay up to date on financial industry changes such as interest rates, corporate takeovers and restructuring, and market trends. A private banker is typically expected to meet with her clients in a timely manner if significant changes occur to discuss strategies to protect their investments.
A private banker is expected to develop sales and marketing plans to increase bank revenues in addition to caring for her customers. She could be expected to develop departmental operating budgets and collaborate with other departments to set mutual goals, which could include cross-selling products and services. A private banker’s success also depends on staying current on banking industry policies and procedures.
This position frequently necessitates a bachelor’s degree in a financial-related field. If candidates without degrees demonstrate exceptional competence and promise, some financial institutions may promote them from within. Certain banking services, such as financial planning, investment management, and stock brokerage, frequently necessitate industry or government-issued licenses. Banking or financial services experience is highly desirable.