welcomed proposals by the city-state’s monetary authority to
strengthen subsidies to a range of training programmes. The move
addresses the need to foster talent in one of Asia’s most important
wealth hubs. Titien Ahmad reports from
Singapore.
Private banker training is back in the spotlight in Singapore
amid market volatility and the high-profile alleged mis-selling of
complex financial products linked to the now-defunct investment
bank Lehman Brothers.
Go deeper with GlobalData
In response, Ng Nam Sin, executive director of the Monetary
Authority of Singapore (MAS), has outlined a number of measures
designed to strengthen the quality of advice given to investors.
The new push, which includes increased grants for wealth management
training, will also address the shortage of private bankers in
Singapore, which are needed to meet increasing demand for wealth
services in Asia.
The improved subsidies for a range of programmes have been
welcomed by the industry, including Anthonia Hui, chief executive
officer and co-founder of independent advisory firm, AL Wealth
Partners.
She told PBI: “Given such government backing, many
financial institutions are keen to build or up or strengthen their
wealth management capabilities by structuring their training to
meet the FICS standards.”
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By GlobalDataA vocal proponent for training in the soft skills departments,
Hui highlights that “most banks in Asia, not just in Singapore, are
still very much focused on product training or sales training”.
“The training desperately needed by the industry is in
relationship management or the soft skills,” she added.
“Because of the high sales targets set and staff turnover in the
last few years, many banks are not able to find the time or
resources to set up such training despite management acknowledging
this need.”
“Furthermore, many successful relationship managers do not feel
the need to be trained if they are bringing in business for the
bank. The financial crisis has highlighted the weaknesses of those
who lack the appropriate skills and training in relationship
management.”
The Financial Industry Competency Standards (FICS), based on a
similar framework in to the UK’s, serves as a road map for skills
and is a benchmark for wealth managers looking to replicate
international best practice. Training programmes from local
providers such as Singapore College of Insurance, Singapore
Management University (SMU) and the Wealth Management Institute
have been accredited by the MAS-linked Institute of Banking and
Finance and tasked with developing over 270 FICS-accredited
programmes by 2010.
New measures
The new measures Ng introduced in the speech, to a graduating
class of private bankers from Standard Chartered, included
increasing grant support for trainees under FICS to 80 percent.
There was also the introduction of financial support to wealth
management firms to implement in-house programmes and an extension
of grants to individuals not sponsored by financial
institutions.
Under the Financial Training Scheme (FTS), which provides
financial support to executive programmes, grant support has been
increased from 50 percent to 70 percent. And for the Finance
Scholarship Programme (FSP), a postgraduate scholarship, MAS will
broaden the range of Masters programmes which qualify for
support.
There are more than 50 private banks and wealth management firms
based in Singapore representing a four-fold increase in the past
five years. Such growth, along with the expansion of the HNW market
in the region, has contributed to frantic headhunting and
recruiting from within and outside the industry, thus contributing
to a sizeable number of private bankers with relatively shallow
experience in advising HNWIs.
This lack of depth in adviser experience was highlighted with
the recent debacle of alleged mis-selling of Lehman-linked
structured products to the average investor. The industry has been
criticised for its focus on product-selling and that it has moved
away from original premise of private banking – earning the trust
of the client by providing bespoke wealth management.
“I believe that the profile of banking has changed after this
crisis, the whole business has to be reviewed and understood,” said
Dr Annie Koh, associate professor of finance and dean, office of
executive and professional education in SMU, the university’s
executive training arm.
StanChart increases training
“It has gone beyond product and financial knowledge.
Relationship managers must now learn about the business of private
banking – how to build trust, how to communicate and articulate
clearly amid the market noise and information overload. In
addition, different segments of clientele require different
solutions in terms of guidance, financial planning and engagement.
It will be challenging to do private banking these days,” she
added.
“The focus in Singapore is now on making sure that clients are
kept aware and updated on events unfolding in the market. Many of
the relationship managers are focusing on helping their clients to
preserve their wealth.”
The focus from a product-driven approach to a relationship- and
advisory-driven approach will need heavy investment in staff
training. Standard Chartered, for example, has said that it will
increase its emphasis on frontline training.
Ben de Beyer, head of human resources for private banking,
priority/excel banking and small- and medium-enterprise banking at
Standard Chartered, said: “We are increasing emphasis on the
frontline training programmes we have been building and rolling out
through our Private Bank Academy. We take a long-term view of our
business and will continue to make fundamental investments in
people – training recruitment and development.”
There might even be a move among the private banks to compensate
private bankers according to their soft skills.
“In fact, many senior executives of leading private banks now
acknowledge that they need to use the crisis to review their
business model from product-selling to relationship-building. Some
have even voiced their wishes to change remuneration of
relationship managers from product sales to quality of relationship
and advice,” Hui added.
