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Tom Baker, head of resourcing at Barclays Wealth, granted us the interview below about Barclays’ Embark Programme, designed especially for people without a financial services background who want to break into wealth management mid-career.
This is what we asked. This is what Tom told us.
So, what is the Embark Programme exactly?
Tom:
The Embark Programme was specifically designed to attract and recruit individuals who have a proven track record of success in their current career and are able to transfer their skills into the role of a Private Banker. While we understand Embarks may be new to the industry, we have set some key competencies and behaviours that we expect our Embarks to demonstrate and will look for during our selection process, such as the ability to build and maintain relationships, the ability to work with diverse groups of people and a passion for building a client book.
How many people do you hire through Embark annually?
Tom:
We offer two programmes per year recruiting approximately 24 people annually across both our UK & Ireland and International Private Banking businesses.
Embark is only one part of the recruitment programme at Barclays Wealth. In total, we’ve successfully hired over 100 bankers across the UK and Europe already this year.
I understand the selection process for Embark is very rigorous. Is this correct?
Tom:
Candidates must successfully progress through a rigorous selection process which includes applying via our on-line application form and completing two ability tests and answering four business questions. After applications are screened by the business, candidates will participate in interviews followed by a half day assessment centre.
What happens if you make it through the Embark selection?
Tom:
Candidates who are successful during the selection process will join the 10-12 week training program, which is designed to prepare new bankers for gaining the skills, knowledge and expertise to develop their own client book, successfully manage client relationships and integrate their product and technical knowledge when creating client solutions.
Why is a programme like Embark necessary?
Tom:
As well as hiring from outside the industry, we’ve also been very successful at hiring from rival organisations. However, the market for high quality private bankers is tight. All the research points to the fact that there won’t be enough private bankers to meet market needs in future, so we’re focused on growing our own, as well as hiring opportunistically from elsewhere.
Alongside the Embark programme, we’ve also increased numbers on our graduate scheme, a growing number of which convert into junior private banking roles.
I currently work in this sad sack of poop called Private Banking. No one makes any money, everyone lives middling lives and the lack of intelligence is criminal.
Mediocrity reigns supreme.
And yes, I am on my way out.
I agree with boutique banker. Private banking is a poorly paid, empty sales job with zero intellectual challenge and no way forward. I found it depressing, demoralizing and degrading. I became a trader and now make substantially more without having to meet insane targets or put up with arrogant clients who promise a lot and deliver very little. To make matters worse, the recruiters fosucing on wealth management are the most primitive and empty- headed in the recruitment industry, adding substantially to the frustration of a private banker. I wish you good luck in finding your niche, the fact that you realized what private banking is and you feel your are on your way out demonstrates you are one of those rare private bankers with a brain.
Private banking is a high-volume and low-margin business. You need to have 300M AUM just to break even, assuming a ROA of 80-100 bp these days. My advice to anyone with solid education and self-respect is to look for a more meaningful career in or outside finance.
One day a recruiter called me and said his client was looking for someone ‘WHO CAN ACQUIRE ASSETS AT A VELOCITY (!!!) OF 50 M PER ANNUM’. And recruiters wonder why every banker thinks they are stupid.
Embark Programme = The Apprentice
1) What’s the starting salary for the Embark Programme? (2) What is the mean salary progression for every year throughout a typical career at Barclays? (3) Is the salary better that front office technology?
Interesting comments. I moved into WM/PB after a 15 year stint sales trading credit. I found the level of investment expertise within the business depressingly low with the majority of PB’s having little or no direct investment/portfolio experience and therefore ill equiped to be client advisors. In essence most PB’s are sales people chasing targets set by management. I remember during the start of the credit crisis the senior management at a well known Swiss PB pushing CA’s very hard to keep clients out of cash despite this being what clients wanted to do and probably being the correct way to be positioned at the time. Funnily enough structured products, with a clear 3 -4% initial margin for the CA & bank, were the favoured investment choice even though the majority of CA’s didn’t understand what they were selling!
For anyone seriously interested in private client work then I would suggest joining a dedicated investment management house and then work with external professional tax advisors for client tax planning.
I agree with the comments about pay. If you want to earn decent money then don’t look at WM/PB.
EMBARK means your boss will EMotionally BARK if you dont hit the targets. Take my advice and EMBARK on a better career.
1) 55k, 2) 8-9% 3) of course much lower than FO technology but a much easier job with a less specialised skillset
Private bankers are the new generation of coal miners: hard work, low incomes, deteriorating health (due to stress) and a skills set useless everywhere else.
Me thinks the comments are all from failed PBers……I do agree with the 300AUM comment though
@ Embarked and sailing – I considered myself a failed person when I was doing the unchallenging and poorly paid job of private banking. You might be ‘sailing’ now but sooner or later you will end up like all private bankers: an unrealistic target will make you sink faster than you can imagine. As a private banker it is essential to have Plan B and Plan C. You need to have an exit strategy because you will exit the industry eventually, you can take this for granted. I have never seen a happy end in private banking.
Guys, you make me laugh! If you want a real challenge in private banking and real bonuses, I would strongly advise you to go and work for Russian private banks (not western banks operating in Russian) and deal with Russian — and then you realize what fun that is!..
@Trader, i have been reading your comments with great interest. i have been trying to get in PB for some time but after reading your and other ex PB’s comments i am think i should concentrate more on developing my trading skills. i have been demo trading for few months but would like to share my trading knowledge and understanding with you and other traders and if you feel comfortable talking to me, please let me know. much appreciated.
@ M – Sure. Post an email address and I will get in touch with you in the coming days.
@ Trader-thanks for your assistance
my email is mustafahussain.ahmed@gmail.com
will look forward to your email-thanks
@ M – I sent you an email from traderprofitable@yahoo.com
I’ve been on the BW Embark course. From 18 starters only 2 left 2 years later. Why? Some not suited, but most see through the facade and that the business model is product push and so long as they top up with new (cheap) bankers before all the rest leave they are ok. Same goes for clients, so long as more stay than leave then it works. There is huge staff turnover. If you stay long enough you will get promoted as they find it hard to attract and retain proper bankers. The clients loose out as there’s a new banker every 6 months or so. That being said some of their products are good Embark is a route into banking, but go in with your eyes open and see it as a way to get head hunted…
Does any body know that do they need the GMAT score for this programme or not?
Is private banking like this with every company or just Barclays? I have been actively looking into a career as a private banker, across all major BB banks. Can someone elaborate the negatives with Private banking in comparison to a PWM gig at a BB firm