“Are private bankers born or are they created?” is a question often asked by managers in private banks, many of whom are targeted on recruit...

“Are private bankers born or are they created?” is a question often asked by managers in private banks, many of whom are targeted on recruitment amongst other criteria.

Those taking the “creation” route face a dilemma. For many years investment bankers wanting an alternative career have been touted as being the answer to the acute global wealth management recruitment shortfall. But the very nature of investment banking, with its emphasis on deal-making and short-term “wins” is hardly conducive to building client trust over a number of years.

And employing and training younger bankers may not be a panacea either. According to Eric Barnett, managing director of SG Hambros in London, this route to organic growth involves a dilemma.

“Training a graduate in the basic skills required of a private banker may take several years. But even when this process is complete, it will only work if the client is willing to accept a less experienced, even if by then technically proficient, advisor,” he told WealthBriefing.

“In our experience, clients often want someone more mature for their private banker. If you’ve taken a graduate and trained them up, you have to keep them motivated until they’re experienced enough to deal with clients. At the very least you run the risk of them getting bored and leaving,” he said.

Faced with this quandary, analysts have suggested that until the reservoir of experienced bankers has grown, the only thing for wealth managers to do is think laterally.

A number of organisations have recently recruited talented individuals from other sectors, with excellent results. The luxury goods industry, which also targets high net worth individuals, is seen by some as a natural place to start.

Irish billionaire Derek Quinlan recently hired Ruth Kennedy, former managing director of David Linley Furniture, to head Quinlan Private, his property wealth management operation.

And the recruitment by HSBC of Tony Joyce from the exclusive Dunhill also underlines the clear channels that exist between the two industries.

"Ultimately it's the chemistry that counts in a successful private banking relationship, and luxury goods is the ideal training ground for client-handling skills," said Ted Wilson of Scorpio Partnership, the consultants to wealth managers.