Guest Comment: even senior private bankers make serious interview mistakes

Attending a job interview for private bankers these days is getting trickier than ever. After the era of hasty hiring (with little due diligence undertaken) just a few years ago, banks are becoming smarter and more cautious in their hiring approach.

Private bankers can no longer ace their interviews purely with the promise of potential clients. After the financial crisis, firms are only interested in high flyers - senior bankers who command at least US$120m - with healthy revenues and a proven track record of managing wealth for several years.

Typical questions

Assuming you have met the above criteria, be prepared to answer more questions, including:

· How much of your current AUM is inherited?

· How many net new assets are you confident of bringing in?

· What has been your return on assets over the last few years?

· Are your clients focused on a particular geographical region?

· Are these clients in any particular profession or industry?

· What types of financial products and services would they likely be buying from you?

· What level of duplication (in clients and assets) do you foresee when you cross over to the new bank?

· How many of your clients are willing to move with you?

· Are you planning to join by yourself or with a team? If it is a team move, the above questions would apply to every single team member.

· How much AUM would you (and each team member) be able to bring in over the next 12 months?

· And in some cases you might be asked: how much AUM could you bring in during the second and third year?

Some of these questions are not easy to answer. You could be your client's favourite private banker and the star performer in your bank. However, suddenly you could feel like a fish out of the water at the interview table, trying to sound as convincing as you can that you are the perfect candidate.

So here are some interview tips

Be prepared

Take some time off to reflect on the above questions. Do additional research on the new bank and ask yourself your true motivations for wanting to leave your current place. Is it due to dissatisfaction with colleagues or management? Is it an issue linked to remuneration? Do you foresee constraints in terms of career advancement? Are you unable to further grow your business in the current setup?

Conversely, you need to ask yourself "why the new bank"? Does the brand name sit well with your top clients? Is the platform easy for you to conduct business? How much potential duplication do you foresee? If the duplication is significant, do you see yourself as the lead banker managing those assets?

On the day of the interview, put yourself in the right frame of mind to meet with the interviewer(s). As much as possible, shut out any unnecessary distraction. Find out their names and job titles. What would they be looking out for? How could you connect with them and make the meeting interesting and mutually beneficial?

Be upfront (and accurate) with numbers

A typical interview for a private banker is likely to be intensive on numbers, so try your best to be upfront and as accurate as possible. Prepare responses for the following:

· How much revenue were you making last year and the year before, and over what AUM?

· How many clients are you actively managing?

· What is their average net worth?

· How much bonus payout did you last receive?

· What is your current remuneration package? Provide a breakdown in base salary, allowances, stock options and other benefits.

Make sure you have documentary evidence for numbers relating to revenue, bonuses and salaries because the HR manager will definitely request for it as you progress deeper into the discussions. Rather than springing a surprise in the second or third interview, it is better to be clear about your figures from the start.

Be ready with a business plan

Assuming you have done well in interviews and shared your numbers, getting your business plan ready is the next step.

A business plan for a private banking candidate doesn't need to be as detailed as an entrepreneur's seeking investor funding. It is a simple document (about three pages) which allows the hiring bank to make a quick (and reasonable) assessment of your suitability and your chance of success.

Spell out your vision and your plans for the next one to three years. If possible, include numerical projections on how much potential business you can do and how you can achieve those numbers. A well written business plan not only benefits the hiring bank but also helps you to monitor your progress after you join.

So rather than fidgeting at your next interview and blaming your headhunter for not doing a good job, follow the advice above. You can be assured of greater control and confidence at the interview table.

John Koh, managing director of executive search firm WMRC (Wealth Management Resource Centre)