This is what your private banking salary and bonus should be in Singapore

Is now a good time to start a career in private banking? The sector has lower hours than some other front-office jobs like M&A bankers, and is particularly prestigious in Asian finance hubs like Singapore, but how much can you expect to earn as a private banking relationship manager (RM)? 

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A report published by Asian Private Banker earlier this year broke down compensation at each level of seniority of RMs in Singapore. It found that junior relationship managers can earn a salary of up to $70k (SGD 90k), while base pay for the most senior people averaged up to $350k (SGD 450k).

What of bonuses?  Jerry Lim, financial services front office lead for recruitment firm Morgan McKinley, told us that that total compensation "can be complicated; it often depends on how much revenue you generate, but Banks predominantly pay these bonuses on a discretionary basis." Asian Private Banker's report also broke down total compensation figures at each seniority level. Junior relationship managers take home a total of $92k (SGD 118k) while market heads take home an average of $595k ($765k)

What are the best paying banks for private banking jobs in Singapore?

Similar to investment banking, star relationship managers can expect to earn much more at a boutique firm than at one of the big names. Lim said, "the top firms with big branding tend to pay less than boutiques, who rely on the network and personal branding of top relationship managers."

Standard Chartered, one such big name, supports this notion. CEO Bill Winters said in the bank's Q3 earnings call this year that it doesn't pay a premium for its relationship managers but remains an "extremely attractive destination" for talent because of its platforms and infrastructure.

Examples of major boutiques include LGT, EFG international and J. Safra Sarasin. Some banks, like Julius Baer, are viewed as 'semi-boutiques,' and have a similar position to Asia-native banks like DBS in the private banking ecosystem.

Lim said that boutique banks have "a tendency to pay a higher base salary to attract the relevant talent, but also pay higher bonuses too." 

How to get a private banking job in Singapore

Like a lot of sectors in finance, the hiring market for private bankers has changed significantly since the start of the 2020s. 

For one, it's becoming less common for commercial bankers or investment bankers to transition into private banking. Lim said the ideal profile of candidate right now is someone with high assets under management (AUM) that's "plug and play... banks are interested in how portable your client base is, and what revenues you're able to make for them right now."

The ability to communicate with clients is crucial today, despite evidence of the role becoming more technical in nature a few years ago. This might be influenced by AI, which can now automate some of those tasks, but the technology won't be coming for client-facing roles just yet: "AI is not replacing relationship managers as we speak,"  said one financial services headhunter in Asia, speaking anonymously. "The higher echelon clients still have an appreciation for private bankers."

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