There are more millionaires, but are there more private bankers?

The latest World Wealth Report from Merrill Lynch and Capgemini is trumpeting the fact that the number of Australian millionaires grew by 34.4 per cent during 2009 to 173,600. But there are mixed opinions on whether this has translated into more jobs for private bankers.

The combined wealth of Aussie millionaires grew by 36.8 per cent to US$519.4bn last year, according to the report. Nick Jones, manager of Robert Walters sales and marketing, banking and financial services division, says as a result private bankers have become more sought after since January.

"Demand for private bankers is growing, with the likes of NAB, CBA and the international banks, such as HSBC and Citibank, in the market for quality candidates," says Jones, who adds that the firms are still selective about who they hire.

HSBC in particular has been poaching relationship managers from the Australian banks, according to a recruiter who asked not to be named.

In general terms, transferring your current clients and funds under management is not so important to getting a private banking job at the Big Four, which all have large existing customer bases.

"The job of a private banker at an Australian bank is to focus on retaining and growing customers, while the investment banks, such as Macquarie, Perpetual and UBS, are more interested in candidates who can bring business with them," explains Andrew McKissock, recruitment manager, wealth management, Porterallen.

Outside the Big Four, private bankers need to deliver about half their book to their new employer.

"If they can't bring sufficient clients, then they'll be struggling to land a position," says John Coles, CEO, Executive Group International, who queries whether the hike in Australian millionaires is translating directly into more private banking jobs.

"There'll be a large chunk of the additional wealth tied up in illiquid asset classes, such as commercial and residential property, so we're not seeing significantly more work for private bankers," he adds.