What to Expect in PWM Hiring in 2018

Private banking enjoyed a relatively quiet year in 2017 which allowed it to focus on trimming costs while focusing on technologies to deliver greater service.

In 2018 this will be different. Soaring stock markets pushed assets under management up to more than $17 trillion worldwide and the industry slashed its average cost-to-income. However, private banking and wealth management still face a huge strategic, challenge: adapting their business models focus from multigenerational wealth to new wealth creators who tend to be entrepreneurial and non European. In our extensive conversations with key market participants the importance on greater investment in digital technologies has been required not only to comply with anti-money laundering rules but in order to remain relevant due to rapidly changing demographics and different and demanding client needs. Low interest rates, less trading activity by clients and the growing shift into low-cost passive funds all pose threats to revenues. Several of Europe’s top private banks are expanding their activities in the UK, shrugging off uncertainty over Brexit to capitalize on growth in the UK’s increasingly attractive market for advising rich people on their money. This contrasts markedly with the bleaker sentiment among investment bankers, many of whom are gearing up to shift jobs and assets out of the country to avoid being cut off from their EU clients after Brexit. Britain’s private banking market has also benefited from Switzerland’s decision to abandon its traditional commitment to banking secrecy, shifting the balance for many offshore clients in favor of the UK. The UK private banking and wealth management industry has enjoyed a 60% increase in total assets under management in the past three years and several banks are hiring more relationship managers and developing the market.