Battle of the private banks: international versus regional players

Even in the relatively buoyant wealth management sector, international banks have taken their foot off the gas when it comes to expansion. Now, however, they're facing some tough competition retaining people from high-paying regional players. From a career perspective, which what are the advantages of working for each?

The likes of Barclays Wealth, Credit Suisse, Citi, J. P. Morgan, Lloyds, RBS and UBS are all still hiring for their private banking teams, according to headhunters. However, now regional players are starting to hire wealth managers and, according the FT, succeeding in luring them across from international players.

The case for working for an international bank

1) Clients are attracted by them

Regional private banks may have the added selling point of having closer local ties, as well as access to legacy accounts, but more wealthy Middle Eastern clients are attracted to international players.

"The brand name of the bigger international wealth managers makes them very attractive to regional high net worth individuals, many of whom increasingly want the option to be able to book their money offshore, access to a more diverse product offering through a global platform, and for the ultra high net worths the access to investment banking deals," says Susie Hingston, director at Dubai-based headhunters Loxley Partners.

2) The possibility of an international move

The downside of working for a regional player is, well, being tied to the region. Many private bankers view a stint in the Middle East as a good way to bolster their CV, but want the option of a sideways move to another part of the world in the long term.

"We're increasingly hearing from people who, usually because of personal rather than professional circumstances, want to move back to either the UK or Asia. With an international player, this remains a possibility," says Matthew Lewis, director at Boyden Middle East.

3) People are leaving, and they need to be replaced

As we've mentioned, some international wealth managers remain in the market for expansion, but a generally cautious outlook has led many to scale down recruitment plans. Nonetheless, even the more pessimistic institutions are replacing departing employees, and this is happening more than they'd like.

"Some wealth managers within the international banks are looking at the cuts globally and coming to the conclusion that it's not the safest place to be," says Lewis. "This nervousness means that regional banks are able to capitalise."

The case for working for a regional bank

1) They're being decidedly more generous

Regional private banks have come to the realisation that if they want to attract private bankers from international players, they'll have to dig deep. For the right people, packages can be up to 20-25% bigger at regional banks, says Lewis. What's more, away from the eyes of increasingly stringent regulators in the West, Middle East firms are free still free to pay cash bonuses.

"International banks are paying bonuses to new hires, but they're conditional, on a sliding scale based on revenue generated or net new assets brought in. There's an increasingly large proportion paid in stock," adds Hingston. "Regional players have more freedom, and are still able to bring top tier people in on guarantees.

2) You will be given more time to bed in

Wealth management in the Middle East is something of a mixed bag. On the one hand, banks are competing for the same small band of very well-regarded people and big name hires are generally seen as a coup. On the other, rank and file private bankers are given very little time to impress.

Recruiters suggest that in some international banks, private bankers are given just six months to come good on their promises.

"Most international firms require new recruits to formulate a business plan, the time frame for which is around six months," says one specialist wealth management headhunter. "If, for example, they're unable to transfer 20% of their book during this period, they're generally let go. Within the regional players, you're given at least a year to prove yourself."

3) The job numbers are greater

Looking purely at the hiring numbers coming out of the regional banks, you've got a greater chance of landing a role. Even big recruitment sprees in international firms constitute five or six people, while Emirates NBD is planning on expanding its team by 30 and Abu Dhabi Islamic Bank is believed to be hiring aggressively after bringing in Stuart Crocker to lead its division in May.

"The model of a number of our competitors is to fly senior bankers in," Gary Dugan chief investment officer at Emirates NBD's private banking unit told the FT. "They have people on the ground, but they fly the senior people in. We aim to have the same quality of people sitting in Dubai and talking to clients locally."