Private bankers work in the private banking divisions of large retail banks, in investment banks and wealth management companies. They provide personalized financial services mainly to wealthy people (HNWI).

Below is an overview of the field, what the job entails, and the qualifications required to become a private banker.

What private bankers do

Private bankers meet with clients to define their investment goals, then work with financial analysts and other business professionals to create individualized investment strategies to achieve those goals.

After defining a strategy, private bankers select appropriate combinations of securities and investment products for their clients. walletswhich they then continually manage and adjust.

In addition to investment advisory and portfolio management services, many private bankers oversee deposit and cash management services, credit and lending services, tax planning services, trust services, retirement products, and insurance products.

Many private banking divisions at major banks handle virtually every aspect of clients’ finances. A private banker often works with relatively few clients to provide the targeted, personalized service that private banking customers often demand. In some companies, private bankers focus on managing client portfolios while relationship managers handle other client needs.

Education

A bachelor’s degree in a business discipline or other relevant subject is a basic qualification for working as a private banker. However, in most cases, a bachelor’s degree must be combined with substantial work experience to qualify for a position in this field.

Most employers prefer to hire experienced candidates with master’s degrees in business disciplines such as finance, accounting or business administration. Many employers also look for experienced candidates with an advanced degree in mathematics, statistics, or law. Courses in subjects such as taxation, risk management, investment and financial planning are particularly valuable for aspiring private bankers.

Other qualifications

Many employers seek private bankers with one or more relevant professional certifications in the field, such as the Chartered Financial Analyst (CFA) designation, the Certified Financial Planner (CFP) designation, and the Certified Trust and Fiduciary Advisor designation (CTFA). Each of these certifications requires candidates to pass one or more exams.

Private bankers generally must obtain the appropriate licenses from the Financial Industry Regulatory Authority (FINRA)which is responsible for overseeing securities firms in the United States. Many private bankers require Series 7 and series 63 licenses. Other licenses may be required, depending on the position. Private bankers who intend to deal with life insurance, variable annuitiesand related products may also require appropriate licensing from their local insurance commissions.

The essentials

Many private bankers start working at entry level financial analyst positions with wealth management firms, banks, brokerage firms or other organizations in the securities industry. Many financial analysts study stocks, bonds and other securities to produce financial plans, analytical reports and recommendations for the firm’s private bankers, portfolio managers and other senior investment professionals. With his experience and high performance, a financial analyst specializing in investments can access the position of private banker.

Other professionals in the field begin working as personal financial advisors serving retail clients at banks and other financial services companies. Personal financial advisors do much of the same work as private bankers, but they typically deal with clients who don’t have the wealth to justify the cost of the highly personalized services that private bankers typically offer. A track record of success as a retail advisor can lead to a position as a private banker.