Salary Trends for Private Banking in Singapore

Time flies, and we now find ourselves in November, nearing the end of 2020. As the year draws to a close, so does the approach of salary review and bonus season. Despite the uncertainty this year, private banking has remained a priority for many financial institutions in Singapore throughout the pandemic.

HSBC plans to recruit 500 private bankers

Despite global job cuts, HSBC is expanding its private banking operations in Asia. The bank has announced plans to recruit 500 private banking and wealth management professionals in the region by 2022, with a significant number of these roles based in Singapore.

Salary for private bankers

Private banking and wealth management have shown resilience during these uncertain times. But does that reflect in salaries? According to eFinancial Careers, here’s an overview of base salaries in this sector.

To stay or to move?

There’s a saying: "Loyalty can hurt you in the long run." Remaining at the same company for years can result in salary caps with each promotion, potentially leaving you 40-50% below market value. This often leads to the question: Should you stay or move?

If you plan to stay in your current private banking role in Singapore, a significant pay rise may not be on the horizon. However, it’s a different story for those switching between banks. “As pay remains steady overall, banks that are hiring are offering attractive increments to lure mid and senior-level bankers,” says Andrew Zee, Team Lead in private banking at Selby Jennings, in an interview with eFinancial Careers. The average salary increase for switching banks in Singapore is around 10% - 15%.

What’s in demand?

Banks continue to seek Relationship Managers (RMs) who can bring their client books, particularly in the ultra-high-net-worth (UHNW) segment. According to the Knight Frank Wealth Report 2020, Singapore's ultra-high-net-worth population is growing rapidly, presenting strong opportunities for private banking and wealth management in the region.

While Executive Directors (EDs) and Managing Directors (MDs) often secure high salary increments without strict AUM (assets under management) commitments, others may need to meet specific AUM targets within 18 months to two years. Failure to do so could result in significant pay cuts.

If you’d like to learn more about the Private Banking & Wealth Management sector in Singapore, get in touch with the team.