Recruitment in private banking is anything but boring. There will be some growth and a lot of change in the sector this year.

1) The big four want to become proper private banks

The big four Australian banks are investing in their company-wide platforms and (among other benefits) this will help move them closer to European-style “pure” private banking in the future. In the shorter term the transition is also creating project management roles, says David Holden, associate director, private banking and wealth management, Emerald Group.

Westpac, for example, is bringing together its various historical platforms into one model, which will make it easier to translate wholesale products into the private banking arena.

But expanding in private banking is about people, not just product. The big four need to recruit more private bankers and ideally they would like those with experience at international firms in Australia, such as UBS, Credit Suisse, Deutsche Bank and Morgan Stanley Smith Barney.

This type of poaching is not easy because Australian banks typically pay less total compensation than their foreign competitors, and their offerings in private banking, for the time being at least, are sometimes not sophisticated enough to attract the best talent. The domestics will, however, target returnee Australians this year, according to Holden.

2) Calling all investment bankers

On the candidate-supply side, because of falling revenues in their sector, more investment bankers are considering a career change. Luckily for them, demand for their expertise is also rising as firms face a skill shortage.

“Private banking is a long-term gig where a few grey hairs come in handy. Investment bankers often have the right skills and networks and might be interested in jumping the fence,” says Holden.

3) More firms coming to Australia?

Sources tell us that HSBC Private Bank may be planning to open in Australia. “It has a good private bank overseas and a great retail and transaction business here. Plus the fact that it already has a premium banking service in Australia means it should be relatively easy to establish a proper private bank,” says a headhunter who asked not to be named.

There is also a rumour about JP Morgan starting up at the end of the year, on the back of its strong investment banking, custody, corporate banking and transaction banking businesses in Australia. The firm has been busy building its private bank in Hong Kong and Singapore over the last year.

Either of these two potential moves will, in the words of the anonymous headhunter, “seriously shake up the job market” by putting pressure on Australia’s small private banking talent pool.

Although HSBC in particular may internally transfer staff from the Asia Pacific region, newcomers to the Australian market will also have to eye up their competitors’ employees. “Traditionally JP Morgan has more of a broking focus, so it might look to the likes of UBS and Smith Barney, plus cherry pick from the local houses. Who they hire ultimately depends on what their focus will be in Australia,” says the headhunter.