In the past few years, investment banking has been on a roller coaster of ups and downs that reveal its volatility. By contrast, the private banking business has proved itself to be a stable revenue generator for global finance firms. The private banker's profile has been raised significantly in the past few years and the job has become more challenging as well as strategic to deal with an increasingly sophisticated clientele. 'The private banking business has been doing consistently well; it is now one of the core businesses within a global bank rather than a niche business as before,' says Alan Furlong, director of financial markets for Alexander Mann Asia Pacific, an executive search firm. 'Luckily, we are quite busy. In 2003, there was much hiring and the hiring has not slowed down.' Specialising in private banking and wealth management, Mr Furlong has been ranked one of the best individual headhunters in private banking in Asia. Besides the independent financial advisers that are continuously expanding, European and United States powerhouses are increasing their headcounts. In traditional private-banking businesses, target clients are ultra-high or high net-worth individuals. 'Their product range is broad and comprehensive, from trusts, family-type products, real-estate planning and tax management to [advising on investments in] fine art,' he says. Mr Furlong says the private banker talent pool in Hong Kong is limited. 'The market has only a handful of good private bankers. The key for future private banking is to build a pipeline of talent.' To ease the situation, the powerhouses are taking alternative hires to fill the openings. 'Corporate bankers fit the requirements - they are used to serving business owners or entrepreneurs who are actually high net-worth individuals. Besides the essential relationship management skills, they also have sufficient technical product knowledge.' A number of high-end retail banking professionals make the transition to private banking. 'CitiGold has been producing a stable pool of talent for the CitiBank Private Banking division. These bankers also possess the necessary skills and product knowledge to make the transition,' Mr Furlong says. It will probably take up to three years for these bankers to transform and add value to the team. Across the industry, there are different classes of wealth management professionals, from traditional private bankers to individual financial advisers. A performing private banker will manage an average of US$250 million in assets, Mr Furlong says. 'An extraordinary private banker will have about US$900 million in assets under management on their books.' Besides assets under management, recruiters assessing candidates' capabilities will focus on a stable career history and long-term relationships with clientele. 'We stress the years spent with employers and relationships with clients. It will then be easier for us to predict their ongoing and future performance,' Mr Furlong says. A private banker may change job once every five years, although some stay in the same place for more than 20 years. Private bankers need to be mature and sophisticated, Mr Furlong says. 'They need to have at least eight to 10 years' work experience otherwise it will be very difficult for them to gain creditability among clients. Private bankers will probably start sometime in their mid-30s,' he says. Besides expanding the front-line client-servicing role, banks are looking for investment advisers. 'This function will continue to grow. These are technical people who have a wealth of product information. They generate new products, conduct research, execute orders and provide technical support to the private bankers. They are the real backbone of the business,' says Mr Furlong. Certain firms have a big pool of investment advisers and others have only very small teams. 'The role of private bankers has changed phenomenally over the past five years. They are now required to have a broad and in-depth knowledge of their services compared with previously, when they were strong in only one or two areas.' Bankers need to be technically capable and adaptable to the market situation. 'The length of the economic cycle is shorter these days. They are required to read the global trends, be strong in product knowledge and able to recommend either an aggressive or conservative strategy to their clients,' Mr Furlong says. Young professionals who want to pursue a career in the field can join with personal banking as an entry point. 'It is a good way to learn the business. Very much like the apprenticeship, the young bankers learn everything about client servicing,' says Mr Furlong. Measures of excellence How a recruitment agency runs the rule over a private banker Assets under management - the average private banker manages US$250 million while star performers take care of as much as $900 million each Career stability - stability in private banking is seen as at least five years in each position Client relations - long-term relationships with clients take some of the guesswork out of a private banker's future performance Maturity - because maturity is required to gain the trust of clients, private bankers usually have at least eight years' work experience and are in their mid-30s Knowledge - as market cycles shorten, private bankers are expected to possess a broader knowledge of wealth management services so they can react faster to changing conditions