WHAT WILL you do if you win the lottery unexpectedly? "You are a university
student, and you do not need this money within five years. So, why don't you put
your money into stock market? Let me introduce this fund," answers a Private
Banker, giving a tip to richen your lottery earnings. When you need useful
advice on running your assets, you have to visit the PB. PBs design and advise
you how to run your assets more efficiently. Their analysis covers from finance
related factors to your personal factors.
History of the Private Banker
The word "Private Banking Service" was first used by Citigroup in
1977. In Europe, however, there were "conservators" who offered private banking
services for noblemen centuries ago. Switzerland is considered to be a center of
private banking. Many famous private banks were established during early 18th
century to the middle 19th century in Switzerland. Therefore, practically "Swiss
banking" means "Private banking."
In 1997, while Korea was in a great
economic crisis, Hanmi Bank introduced private banking services. Now, Citigroup
advances the Korean financial market after having bought out Hanmi bank and
provides developed private banking goods to Korean consumers.
The way to be a Private Banker
Usually, people tend to think only business graduated students can
become a PB. But many PBs say this is not true. "Apparently, the fact that you
are equipped with financial knowledge will help. But that is not a necessary
factor. In my case, I graduated Dept. of English Lit. Regardless of your major,
you can be a PB," says Yeom Jung-joo (Private banker, Citibank).
If you want to be a PB, you should establish yourself in a financial
company first. Only a few employees who prove his or her certification through
internal selecting process can be a PB. "I heard that each bank has somewhat
different programs in selecting and training PBs. Basically, however, all the
PBs are experts. We continuously have seminars in order to improve our skills
and keep up with the mainstream of market advances," says Yeom.
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Customers, who have an account, usually meet banker twice; when they
open their account and when they close their account and with-draw their assets.
PBs, in contrast with other bankers, need to meet clients continuously. "Because
I run my client's money, I should earn my clients' trust. Relationships between
my clients and myself is more than just business affairs. From this point of
view, Americans called a PB a Relationship Manager (RM)," says Lee Jeo-ock,
(Private Banker of CitiBank). Actually, some PBs are worth billion dollars
themselves. "Clients tend to remain loyal to extraordinary PBs and follow them
if they change companies or location, even if it is to Hong Kong or Singapore.
How much capital moves with the PBs, decides the private banker's value," says
As a result, PBs should be ready to give exceptional advice.
Officially, employees in a bank, including a PB, work 9 a.m to 5 p.m. However, a
successful PB spends his or her free-time to analyze everything; exchange rates,
stock market indices, and so on. "I do not stay all night at work like lawyers,
but I am sure that being a PB is one of the hardest jobs," says Lee.
According to economic statistics, the top 5% of clients accounted for
95% of overall bank revenues. As the partnership between PBs and clients becomes
stronger, the benefits grow exponentially. "I believe that a PB is the blue
ocean for those who are fully equipped with passion and communication skills,"