Who Should Your Private Banker Report To?

Taking Stephen Covey’s 7 Habits (habit #2) “begin with the end in mind,” the best way to approach this question is doing exactly that… “The end” goal for most of us is around our clients and members. Based on this, let’s add to the above question:

“To ensure our clients and members have the best possible experience”, who should our private banker(s) report to?

In the context of banks and credit unions that have wealth management programs, your private banker (preferably licensed) should report to the head of wealth management.  In our experience, this ensures that they are aligned with the overall strategic goals and objectives of the financial institution’s banking and wealth management services. It also allows for more effective communication, accountability, and coordination within the wealth, retail, and business banking teams.

However, there is no black-and-white answer to any complicated question…

  1. If the Financial Institution has a “Head of Private Banking”: Obviously, in this scenario, the private bankers will report to the individual heading up that department. For the most part, wealth program managers can handle having 3-4 private bankers reporting to them as long as they have the systems and structure in place to accommodate this. Once a financial institution has more than 3-4 private bankers, they should consider a different strategy.
  2. If the wealth program’s manager is a producing manager: In almost all situations we have come across, a producing manager in wealth management does not have the bandwidth to take on the supervision of even one private banker. In this scenario, the private banker should report to your head of retail or head of business banking.
  3. If the wealth program’s advisors report to a bank / CU executive: Like number 2 above, the private banker in this scenario should report to the same person who manages your financial advisors. But you are likely approaching the point where you need to hire either a producing or non-producing manager.

If you have any questions about private banking and/or private wealth inside a community bank or credit union, please reach out and I can offer more tailored insights.

About Compass Consulting

Compass is dedicated to supporting community banks and credit unions, specific to their efforts in offering comprehensive private wealth, securities, insurance, trust, and other wealth management and advisory services.

Central to our mission, is bridging the gap between the major Wall Street firms and the banks and credit unions that serve the public at the community level. To learn more about Compass’ services, visit our website www.compassconsulting.com or call 760-477-1299.


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