BoI to bite chunk out of private banking competitors

Bank of Ireland has set up a private banking division to poach business from its rivals, and is looking to expand the team.

Seven senior private bankers have been recruited for the new Direct Business arm, which aims to hunt for rich folk disaffected by dodgy investment decisions.

"In contrast to other private client businesses, we stayed away from exposing our clients to areas such as CFDs, CDOs and buyout funds in 2007, decisions that have proven well-grounded given the issues we've seen of late," says Sean O'Murchu, who is set to lead Bank of Ireland's new private banking venture.

O'Murchu reckons clients of rival banks who were exposed to these kinds of products are now ready to move their money: "We are increasingly growing the number of clients who have no connection with BoI and we are seeing a growth in enquiries from those who have been using other firms."

Ireland now sports some 33,000 millionaires, and national coffers have swelled to €804bn, with the result that the wealth management industry has blossomed over the last five years.

At the same time, the supply of private bankers has struggled to keep pace. James Hayes, manager - banking and financial services, at recruiter Robert Walters, says: There's a lack of experienced candidates willing to move to a competitor. The most reputable private banking professionals (with an established client base) tend to be financially well looked after by their employer and are content to remain."

Senior private bankers in Ireland can expect to bring in €90k-€140k, with a 100% bonus potential.

Despite the shortage, O'Murchu says BoI is committed to hiring experienced senior private bankers to its team, which currently numbers seven, and expansion plans "will depend on how the venture goes", says a bank spokesperson.

At the same time, it's training people at the junior end. Last year the bank launched an 'academy' for wannabe private bankers. David Lowen, head of private banking at BoI, says the traineeship is split '50/50' between lectures and work placements. Seven lucky candidates are hired into the academy every year.