In an interview, Thomas Piske, CEO LGT Private Banking, talks about the attractiveness of the industry, the future prospects it holds and what kind of qualifications are required of private bankers in order to be successful.
Mr Piske, a recently conducted survey by finews.ch indicates that entering the banking industry appears to be increasingly unattractive. Can you relate to this and if so, why?
Yes, to a certain extent, it makes sense. The reputation of the banks did indeed suffer during the financial crisis. Certain excesses were justifiably denounced in the public sphere. In addition to this, the industry is undergoing a period of transformation. In a number of areas, this has resulted in job losses, and that creates additional uncertainty.
Is entering the private banking business not a bit like backing a lame horse?
By no means. Private banking and asset management continue to offer attractive opportunities and possibilities. Only a very small number of industries offer a similarly high level of added-value.
«Private banking has been undergoing an adjustment process for a number of years now»
The job profile has changed, but our services will continue to be needed in the future. The demands on private bankers are higher than they used to be due to increasing regulation, margin pressure and more intense competition. But this tends to make our work even more interesting and varied.
The survey also indicated that salaries and bonuses will decrease significantly in the coming years. Do you share this view?
The fact that lower margins and profits also have an impact on salaries is a logical consequence. Salaries in the finance industry should also always be considered in relation to salaries in other industries. If we want to attract the top talents, we will also have to offer competitive terms of employment in the future. That will continue to ensure attractive pay levels.
What will make the job of a relationship manager in private banking attractive in the future?
The individual should be at the center of private banking, even if today, that is not always the case. We want to support a broad range of individuals with long-term solutions for their assets, so that they can secure their futures or pass their wealth on to the next generation.
«Private bankers must be willing to deliver above-average performance»
This kind of work leads to enriching encounters, interesting insights and stimulating professional responsibilities.
What qualifications must a prospective private banker bring to the table today?
In addition to professional qualifications, personality and soft skills are very important. People who wish to serve demanding clients must have very strong communication skills and a high level of social skills. They must also be willing to deliver above-average performance and be prepared to go the extra mile.
How does the evaluation process at LGT Private Banking work for newcomers?
It is difficult to assess at the beginning of a career whether or not someone will become a good relationship manager. That is why we familiarize young professionals with the tasks conducted in private banking by means of our in-house training programs. A prerequisite for entering this business is outstanding marks in Banking & Finance or in another discipline, for example general management.
«These days, there are a lot of banks that are much too preoccupied with themselves»
That being said, we are also open to people coming from other industries if their performance was above average and the person fits with our corporate culture. Applicants go through a traditional, multi-stage standardized recruiting process that includes individual discussions and a performance evaluation.
How many experienced relationship managers are concerned about their jobs in this environment? What can they do to ensure they remain in demand in the future?
The job profile for private bankers is in a state of flux. I fully understand that this can be unsettling for longstanding relationship managers. But those that are taking part in the transformation needn’t worry. Good relationship managers are still very much in demand.
«In the last fifteen years, we have successfully internationalized our business»
The core tasks performed by a relationship manager cannot be outsourced and cannot be delegated to robots. Providing good advice will always be a people business.
Which growth plans or strategy are you pursuing for private banking at LGT?
In the last fifteen years, we have successfully internationalized our business and today we are geographically balanced, solid and competent in our areas of business. With branches in Liechtenstein, Switzerland, Austria, Hong Kong, Singapore, Dubai and London, we have service centers in the key financial centers in Europe, Asia and the Middle East.
Our task now is to further develop these platforms and make the most of them. We are pursuing a strategy of quality, and in order to be successful, we need the best people.
Thomas Piske who joined the bank in 1986, serves now as the Chief Executive Officer and Chairman of Private Banking at LGT Group.
