HAVING qualified as a professional accountant in London, David Loh has ditched crunching numbers for a job as a wealth adviser to high net worth individuals - an occupation more commonly termed as a private banker.
Backed by more than 20 years of experience in the business, the man is now a senior private banker and managing director of Citi Private Bank, managing a select group of 'mega wealth' clients - those with a net worth of US$250 million or more - from the Philippines, Singapore and Malaysia.
Mr Loh believes that cultivating the trust of his clients is one of the most important factors in a highly successful client-banker relationship.
'Your clients are very bright people and they are always assessing you throughout your interaction with them,' he said. 'Thus it only makes sense to be very aware of your role and respect the relationship and time that they grant you.
'Only when you respect the relationship will you be able to gain their respect and trust in return. This will in turn enable you, the banker, to foster closer ties with your client and members of his family which is pivotal in managing a successful relationship.'
But trust can only be built over the long term by consistently following up in delivering services, asking for feedback and asking good questions.
'Ultimately, the choice lies with your client in deciding whether to allow you to manage his wealth, so a good amount of trust is always essential in developing a strong partnership when it comes to wealth management,' he said.
After-sales service is also critical, he added. New recruits should bear in mind that relationships are developed for the long term - quite unlike deal closures in investment banking, which tend to be on a project basis.
'Hence, being attentive to your clients' needs and taking the initiative to provide solutions for your clients will undoubtedly help to cultivate trust for the long haul.'
While mastering the technical aspects of private banking - such as the ABCs of trust services, investment products, credit and lending - is not difficult, the challenge is in mastering the softer skills required of the job such as effective communication and making others warm up to one readily.
'It is important in this business to be able to warm up to others, especially your customers, so as to facilitate effective communication,' he said. 'Even when you are in a restaurant, the proficiency of your soft skill-set comes into play. You are expected to be able to handle yourself well by behaving politely when you are ordering food and display a competent knowledge of dining etiquette.
'Of course, some of this can be trained for and practised but a portion of it is also determined by a person's character and upbringing. This is the skill set that is the most difficult to train for, especially within a short period of time.'
For undergraduates wishing to prepare themselves for a career in private banking, Mr Loh suggested picking up golf, a game often associated with the high net worth.
'Many people often like to play golf both for the love of the game as well as the character building aspect of the game,' he explained. 'Your behaviour on the golf course speaks volumes of your ability to control yourself and evidently shows your level of emotional maturity. Thus a head start on the golf course will always be very helpful for one aspiring to be a private banker.'
Playing golf as part of a job may sound like a luxury for many. However, there are many challenges that private bankers face as well, especially when their clients' portfo-lios are not performing up to expectations. When that happens, a good private banker should not be afraid to address and discuss the issue with his clients.
'Most of the time, portfolio underperformance might be due to the poor global economic environment which the private bankers have no control over,' said Mr Loh. 'Therefore, it is important to talk it out with your clients to enlighten them about the situation. For them to give you 'face time' is a privilege; you should appreciate and make the best use of it.
'It also helps to talk to your clients in terms that they understand when explaining the underperformance. For example, you might relate investing money in a new product to investing in a new business where economic conditions play a large part in determining the success of the venture, to enable them to understand the situation better.'
The bottom line is to engage clients and maintain regular communication. 'Dedication and commitment in serving your clients is one of the cornerstones of private banking, something which every private banker- to-be should possess even before considering a career in private banking,' he said.
When not working, Mr Loh enjoys working out in the gym, reading and trekking. 'I prefer the open to the cities and I like to travel to unique places, places where tourists seldom frequent,' he added. 'It is there that I find peace and quiet and it gives me time to reflect and put things into perspective. I always seek to live my life to the fullest by trying out things that are different from the ordinary.'
His final piece of advice for aspiring private bankers: 'This is a glamorous and prestigious job but you have to be prepared to work hard for the rewards that come along with it. It is a great career for someone who enjoys interacting with people as private banking is an extremely client-centric business. Live your life to the fullest because clients will appreciate you more if you have a very interesting lifestyle. Through you, they may also see an interesting world and life.'
This article was first published in The Business Times on Jun 16, 2008
