Operations 65 Private Wealth Management

OPERATIONS

Investment bank operations staff ensure bank transactions are cleared and settled efficiently, profitably, and risk-free.

OVERVIEW

Though the client-facing “front office” of an investment bank usually gets the most public attention, that’s only half the picture. Operations, also informally known as the “back office” is where the bank handles the money it makes - processing transactions from trades, keeping records, and ensuring compliance. It also ensures all the bank’s functions run efficiently on a daily basis.

Unlike client-facing staff, operations teams don’t actively generate revenue. However, they are recognised as key to a bank’s profitability. They play crucial roles in managing risk and minimising losses by ensuring that the bank’s business activities are carried out in an efficient, controlled, and timely manner.

The vast majority of banking processes utilise sophisticated IT platforms and systems. So an additional key task for some operations staff is to develop and implement new IT systems, as well as maintain existing ones and collate the vast amounts of data that flow through them each day.

CAREER PATHWAYS

Qualifications for operations roles vary greatly depending on the specific function you’re applying for. However, most typically require a bachelor’s degree or higher and at least some measure of relevant work experience within your chosen function area. Most graduates begin their operations careers in training programmes before being assigned to an experienced staffer for mentoring and additional onthe-job training. Early-stage work may include working with more experienced team members to introduce a new investment product or improve an internal control process.

Operations roles usually focus on a particular function. This can include clearing or settling transactions, managing documentation, customer service, data analysis, compliance, systems integration, accounting, or risk management (in some organisations).

For example, securities operations may ensure that desks in linked markets have enough capability to communicate with each other and coordinate trades. On the other hand, risk management operations ensures that the bank doesn’t accidentally take on deals that it doesn’t have the capacity to underwrite.

Most graduates will have the chance to work in several different areas of operations. This will allow you to gain an overview of the various types of work available (e.g. process-driven vs. project management roles). As you advance in your career, you will be encouraged to specialise in a particular area.

REQUIRED SKILLS

Speed is key when it comes to operations roles. You can expect to see thousands of time-critical transactions pass through a bank’s back office each day. The work can be very high pressure at times, so it’s essential to be on the ball.

However, technological developments have actually speeded up processes as well. For instance, transferring assets or clearing a client pay-out used to take up to several weeks, but can now take less than three working days.

Strong IT/technical literacy skills are key as well. As mentioned earlier, most - if not all - back office processes are now handled via complex IT platforms. Even if your role does not involve developing or maintaining the platforms themselves, you will still be making extensive use of them to perform your day-to-day duties. These systems may also be upgraded, replaced, or phased out at any time, so adaptability is important.

Other essential skills for operation roles vary depending on the kind of function that you are assuming. However, most of them will require a combination of the following soft skills:

Strong numeracy skills

Communication skills

Technical skills

Analytical and problem-solving skills

Organisational skills and attention to detail

Critical thinking

Time management

Flexibility and adaptability

PRIVATE WEALTH MANAGEMENT

Private Wealth Management involves handling and growing the assets of high-net-worth individuals or accredited investors.

OVERVIEW

Private wealth management (also commonly known as private banking) services very wealthy “high-networth” individuals, along with the occasional small/medium-sized business owners. These clients typically look for specialised services that cater to their distinctive needs as they have a larger-than-usual amount of wealth.

These services include planning and investment management, along with advising on matters such as taxes, retirement funds, non-liquid assets, and family trusts. Highnet-worth clients tend to possess diverse portfolios across a number of industries, and thus servicing them requires customising and tailoring exclusive solutions just for them.

Private wealth management usually offers two types of services: advisory or discretionary. With an advisory service, the client’s private banker will advise them about investment opportunities, and the client will make the final decision on whether or not to invest.

With a discretionary service, the client will have a thorough discussion with their private banker about the strategy they want to take. The bank will then manage the client’s portfolio entirely on their behalf.

CAREER PATHWAYS

There are three broad types of roles in private wealth management – relationship management, investment, and support.

Relationship managers identify clients’ needs and problems and offer them solutions from the bank. Developing and maintaining a good relationship with clients is vital, and this line of work involves frequent travel and close contact with clients.

Investment specialists either offer expert advice to help clients with investment decisions, or invest clients’ money on their behalf. They may also liaise with other product specialists at the bank, who can provide expert advice on particular assets.

Support functions help investment specialists research new commercial ideas, and ensure key business functions are running smoothly and efficiently. It also includes compliance, operations, HR, and accounting.

You will need an undergraduate degree related to financial services, business management, accounting, economics, or financial planning to join a wealth management firm or division of a bank. Given the sensitive nature of this work, you will need to gain sufficient experience on the job before you are allowed to handle clients’ assets. You can expect to start off in an analyst or support role, assisting investment professionals and relationship managers with putting together solutions for clients.

You will eventually transition towards speaking with clients yourself and handling client relationships. Though be aware that some firms may want staff to obtain specialised certifications – such as a master’s in wealth management – before allowing them to climb past a certain point on the ladder.

REQUIRED SKILLS

Language skills are highly sought after in private wealth management. In this international and clientfocused line of work, being able to communicate in several languages is a huge asset.

Other key skills required in this industry are:

Strong customer service skills

Strong numerical skills

Market awareness and the ability to spot investment opportunities

Discretion and trustworthiness