The organisations are increasing a wealth management apprenticeship scheme in the wake of heavy demand for an inaugural programme, also a sign of how talent development remains a hot focus in Asia.

Asia continues to raise its game in building in-house private banking and wealth talent. 

The Hong Kong Monetary Authority and the Private Wealth Management Association are widening an apprenticeship programme to develop talent in Asia, responding to “overwhelming” demand, the organisations have announced.

The 2018-2019 cycle of the Pilot Apprenticeship Programme for Private Wealth Management, to use its full name, will widen to offer around 50 apprenticeship positions, HKMA and PWMA said in a recent statement.  

The HKMA hosted a recruitment day event at its premises at the weekend, with organisers confident of a strong turnout.

The programme is designed to grow the talent pool and help introduce young talent in Hong Kong to “front-to-back” career opportunities in the private wealth management industry.

This scheme is the first initiative offering full-time students at institutions funded by the University Grants Committee, a multi-year experience dedicated to training in private wealth management. All full-time students at UGC-funded institutions are eligible to join the programme, although priority will be given to second year students. Successful applicants are offered two rounds of paid summer internships with a host private wealth management institution, leading to a potential job offer with the host firm after graduation. The students work in a range of functions at private wealth management institutions, learning about products and client services, as well as risk management, compliance and internal control issues.

The 2018-2019 cycle will last for eight weeks in 2018 beginning in June, and eight weeks in 2019. The programme is administered by The Hong Kong Institute of Bankers.

There continues to be discussion about the need for more qualified financial advisors and private bankers in Asia to serve expanding wealth in the region. Earlier this year, figures showed that China overtook the US in the number of people taking CFA Institute exams. Asia-Pacific is now the region with the most candidates entering these exams, highlighting how the global centre of gravity for financial services is shifting eastward. Some 43 per cent of the 59,627 candidates who took the Chartered Financial Analyst Level 1 exam in December last year emerged with a pass, the CFA Institute said in a statement. The number of candidates entering the exams rose by 14 per cent compared with the level in 2015. 

Credit Suisse, for example, said in 2015 that there are an estimated 7 million millionaires in the Asia region. On the assumption that a banker can on average handle 35 clients, that would translate into a need to have 200,000 private bankers. But at the moment there are only around 10,000 such people.

The first programme
Earlier this year, HKMA and PWMA launched the 2017-2018 cycle by placing a total of 29 university students with 10 participating PWMA member institutions in July and August, exceeding the original target of around 20 students. For the 2018-2019 cycle, around 50 students are expected to be placed with 13 PWMA member institutions starting in the summer of 2018.

“Hong Kong is uniquely well positioned to develop into the private banking hub of Asia and the stakeholders, including the private banking industry, the regulators and the educational institutions must work and collaborate with each other to help grow and nurture our talent pool,” Norman Chan, HKMA’s chief executive, said. 

Amy Lo, chairman of the executive committee of the PWMA, said, “The highly encouraging feedback from the first group of apprentices and participating member institutions alike has inspired strong confidence to expand the programme to a total of around 50 apprentice positions confirmed for the next cycle.”

This news service has a roundup of talent management and education programmes around the world that focus on wealth and private banking. That item is regularly updated and readers are most welcome to submit data on new courses and programmes. Email the editor at tom.burroughes@wealthbriefing.com