Demand for private banking is on the rise in China. Where will China's private banks find the talent they need to keep growing in the future?
While the financial crisis of 2009-2011 briefly slowed the growth in the number of millionaires in China, massive stimulus spending by the Chinese government helped the Chinese economy recover quickly and maintain its double-digit growth in GDP. As a result, the rising number of high net worth individuals (HNWIs) in China is driving an increased demand for private banking services.
For private banks in China, managing and deploying talent causes retention problems and increases the demand for outside hiring of both experienced and entry-level talent.
The talent race is on, and the cannibalistic practices of poaching talent from direct competitors has created the potential for a talent market bubble within private banking, which is compounded by the changing needs of HNWIs.
The ability for private banks in China to expand their client base depends in part on an organization’s flexibility to meet differing client needs based on demographics, wealth tier, and preferences. Equally important is developing a team-based approach to building relationships with heirs and building close relationships with the next generation.
The right talent for the private banking sector in China