Time flies, we are now in November, almost the end of the year 2020. Getting closer to the end of the year means we are closer to the salary review and bonus period. Although it has been an uncertain year, private banking remains a priority for many financial institutions in the city-state during the pandemic.
HSBC Plans to Recruit 500 Private Bankers
Although there has been news about the firm cuts jobs globally, it is expanding its private bank in Asia. HSBC announced the plan to recruit 500 private banking and wealth management staff in Asia by 2022. And there is a significant number of headcount in this space located in Singapore.
Salary for Private Bankers
It looks like private banking and wealth management sector is a survivor at an uncertain time. Does it reflect on their salaries? According to eFinancial Careers, here is the reference on the base pay:
To Stay or To Move?
Some people say: "Loyalty hurts you in the long run. When you are part of the same company for years, each promotion has salary increase caps. Ultimately you can reach a point where you are perhaps 40-50% lower than the average market value.” As a result, we always ask ourselves: To stay or to move?
In general, if you plan to stay in your current private banking job in Singapore, you might not get a large pay rise. However, it’s a different story for those who are moving between private banks in Singapore.
“As pay remains steady from last year overall, banks that are hiring are offering attractive increments to get mid and senior-level bankers to join them,” says Andrew Zee, Team Lead in private banking at Selby Jennings in Singapore, at interview with eFinancial Careers. The average pay rise for moving to other banks in Singapore is about 10% - 15%.
What is In-Demand?
As always, banks are constantly looking for RMs who can bring books with them, especially in the ultra-high-net-worth segment. According to Knight Frank Wealth Report 2020, Singapore's ultra-high net worth individual (UHNWI) population registers among the highest growth rates globally despite its small population size. The opportunity for private bank and wealth management in Singapore remains high.
Although EDs and MDs, in general, are able to get high increments that are not necessarily tied to AUM commitments, while the rest will depend on AUM commitments, they will be giving 18months to 2 years to break even or get near. Otherwise, the cuts can be quite drastic.
If you want to understand more about the Private Banking & Wealth Management sector in Singapore, connect with our Private Banking team lead Andrew Zee to understand more.