By Gabriel Chen

THE financial crisis has failed to stem the huge demand for private bankers here with one industry expert saying that at least 900 experienced operators will be needed over the next five years.

UBS Wealth Management Singapore's chief executive, Mrs Christine Ong, told a conference yesterday that the talent shortage remains and will pose a challenge for the sector unless the ranks are boosted.

Mrs Ong estimates that the headcount of about 1,200 private bankers already based here - after subtracting the 300 or so 'inexperienced' private bankers - will have to rise to about 2,100 over the next five years.

'This is probably a conservative estimate,' she said. 'If you look at where we are today, the industry requires more experienced bankers because of the more complex wealth management needs of clients.'

Put simply, people are getting richer here despite the ravages of the recession. An estimate in June puts the wealth of well-heeled Singaporeans at about US$310billion (S$442billion), down on a year ago but still well up over a five-year period.

And some of the very rich are still under-served, providing opportunities, said Mrs Ong, who was speaking to private bankers and finance practitioners at the Institute of Banking and Finance's annual wealth management seminar.

Ms Jan Richards, who heads JPMorgan Private Bank's business in South Asia, underlined the point, telling the gathering that there is a 'deficit of top-level private bankers'.

While the bank taps the industry for experienced hires, it also 'looks within its own firm in other countries or from other backgrounds' to complement its pool of private bankers.

'Then you keep these bankers by building up a strong sense of loyalty by not focusing on compensation alone, but rewarding and acknowledging good work,' Ms Richards said.

Talent shortage is not a new issue. Private banks have for years complained about the lack of experienced private bankers in Singapore.

But the talk this time comes at a time when the industry is going through a challenging period, from lawsuits to investment losses and mis-selling scandals.

Large numbers of wealthy clients also pulled out their assets during the crisis after losing confidence in their banks and relationship managers in the wake of heavy losses.

Private bankers said at yesterday's event that technical skills alone do not make a good operator. Soft skills - best described as certain personality traits - are also needed but they can be difficult to impart.

'It's being able to listen and provide the right service. Some people have it, some don't,' said Mr Pierre Baer, SG Private Bank's chief executive officer for Singapore and South Asia.

Mr Baer illustrated how important it is to have an interest in the needs of clients. He said that he interviews many candidates and will ask them 'how much money did you make'.

Some will say they made such and such an amount last year.

'But you don't understand my question,' Mr Baer told the seminar yesterday. 'I'm asking you, how much money did you make for your clients.'

Asian wealthy clients also behave differently from their counterparts in Europe and the United States, and this can be a challenge for private bankers without the necessary soft skills.

Ms Richards said Asian clients have relationships with many banks, citing internal research which showed that 15per cent of clients in Asia deal with about 10 banks.

This is double or triple the number of banks their continental peers deal with, she said.

'It restricts how much of their assets we can manage. We also have difficulty giving the holistic advice required for prudent asset allocation, as the client has a different strategy at each bank,' Ms Richards added.

Monetary Authority of Singapore executive director Ng Nam Sin said in his opening address that 'the industry should make a concerted push in requiring their relationship managers to continually enhance their competence'.

This article was first published in The Straits Times.