If Australians are becoming richer, are private bankers becoming more popular?
The Australian Treasury recently reported that the country’s private wealth sector had soared to A$6,200 billion, which represents around A$300,000 per Australian. These figures are significantly higher versus twenty years ago when private wealth accounted for A$905 billion on a national level and $56,500 per person.
If we assume that the country continues to get richer, then it is likely that more people will need some kind of investment advice. This in turn could lead to see the demand for private bankers escalate.
Kate McDonald, an advisor from GOW Financial Recruitment, says ideal private banking candidates have solid knowledge of investment markets and lending/credit risk. With this in mind, McDonald says that candidates tend to come from a personal advising or financial planning background.
In general, a senior private banker earns between A$80,000 and A$120,000 as a base salary. Similar to other sales-orientated roles within the financial services sector, bonus structures for private bankers tend to be dependent on how much new business is brought in, as well as the maintenance of good relationships with existing clients.
New kid on the block
McDonald suggests that one of the best ways for a graduate to enter the industry would be to join a graduate programme at one of the banks with a private banking business unit: most major domestic retail banks or the Australian operations of global banks operate in the private banking arena.