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Question 1

What does AUM mean?

Answer 1

Assets Under Management

Question 2

What does NRI mean?

Answer 2

Non-Resident Indian

Question 3

What are the differences between a private banker and an IFA (independent financial advisor)

Answer 3

• IFAs do not work for a bank, bankers do
• Private bankers work with HNWI / UHNWI (high/ultra-high net worth individuals) usually £2m+NW to open an account
• Private bankers offer specialised services for their clients who have specific requirements but IFAs recommend financial services based on the market as a whole

Question 4

What is the role of a Portfolio manager?

Answer 4

• They are primarily responsible for creating and managing investment allocations for private clients.
• They determine a client’s appropriate level of risk based on the client’s time horizon, risk preferences, return expectations and market conditions.

Question 5

Give an example of a recent private banking news story in Asia

Answer 5

HSBC ambitious plans - Citywire Asia 26.11.18
A
- HSBC has $330bn worth of assets in Asia & wants to capture more by increasing customer facing head count by 2/3 in eight years
- will expand cf team by 1300 by 2020, 700 of which in private banking ( 370 in Hong Kong / 300 in Singapore )
- forking out $100m on digital tech

Philip Kunz, HSBC’s Head of Private baking in Asia said these plans are some the of most ambitious in HSBC’s history

Question 6

Give an example of a recent private banking news story in Europe

Answer 6

Deutsche bank shakes up hiring structure
Bloomberg.com 21.3.19

• new European wealth management head Claudio de sanctis ( from Crédit Suisse ) cut regional managers + announced aggressive restructure plans.
• cut market heads from 14 to 6 and hired Marco pagliara from Goldman Sachs as one of them to oversee NE Europe
• he cut Germany’s regional chiefs by 2/3 to simplify the Command structure

Question 7

3 services that private bankers offer to their clients

Answer 7

WET

• W) Wealth Management
• E) Estate Planning
• T) Tax advice

Question 8

What are 2 important questions to ask a private banker about their client base ?

Answer 8

• Are they likely to follow you? I.e if you got them from scratch they are more likely to have stickability
• Are they new or retiring investors? I.e. are they risk adverse?

Question 9

What is the difference between a family office and a boutique bank?

Answer 9

• A family office manages the investments and trusts of a single wealthy family in value of £100m+ as it usually costs £1m/annum to run
• A boutique investment bank is a non-full service investment bank that specializes in at least one aspect of investment banking, generally corporate finance

Question 10

What 3 parts make a lead?

Answer 10

• Company name
• Interviewers name
• Role applied for