Research by SEI, a global provider of asset management, investment processing and investment operations applications, has found that a third of non-US private banks had over 10 percent turnover in relationship managers in 2006, whereas only 4 percent of US banks experienced similar levels.
The importance of relationship managers in the retention of clients and client assets is highlighted by the fact that of those that experienced over 10 percent turnover last year, two-thirds lost client assets under management (AUM).
Furthermore, of those that experienced this level of turnover, 42 percent lost at least one of the RM’s top 20 clients.
“We believe that the wealth management industry is moving away from a product to a service based business, and obviously the relationship manager is key player in this,” says Brandon Sharrett, managing director of SEI’s Global Private Banking business in the EMEA region. “From an organisation’s point of view it is therefore critical that they fully equip their existing RMs with a range of tools that will enable them to service clients to the highest possible standards, thereby increasing job satisfaction and retention of not only the RMs, but also their clients.”