Navigating your way through a career in Retail Banking

Hong Kong has slipped into what economists called a ‘technical’ recession when the GDP has contracted 14 per cent in the second quarter. A global recession is also looming as experts warned.

In times of economic recession, job security matters. Strange as it may sound but working in retail banking is a recession-proof job alongside with healthcare professionals and other public-sector jobs. While high-risk investment plummets, personal financial service would still be in demand to advise clients moving money to safer investment options and to protect their assets from shrinking.

If you are interested in starting a career in retail banking but got bewildered by the various ranks and titles, this article is for you! It covers where to start, the career pathways and strategies to get ahead fast.

Where to start?

Starting your career at retail banking is ideal should you long for a very structured career progression. The starting titles vary across different banks – ‘General Banking Officer’ (HASE), ‘Relationship Executive’ (SCB), or ‘Branch Trainee/ Teller’ (HSBC, BOC and Citi).

The starting monthly salary will be ranging between $16K-18K, complemented with a generous quarterly incentive and year-end bonus. It is worth noting that banks offering better quarterly incentive, such as foreign banks, will usually offer less year-end bonus.

At this stage, you will have a chance to build up your industry credentials which include getting a pass in Paper 1,2,3, and 5 if you would like to sell investment linked products, of Insurance Intermediaries Qualifying Examination (IIQE), as well as Paper 1, 7 and 8 of Hong Kong Securities and Investment Institute (HKSI)’s Licensing Examination. Congratulations if you are graduate of Finance, BBA and Economics majors as you could have HKSI’s paper 7 and 8 exempted.

Career Pathways

As you have obtained the licenses needed, in 1-2 years’ time you will be promoted to Relationship Manager Trainee, then Relationship Manager, or you have an option to become an insurance specialist or joining other teams such as mortgage or loan team. The monthly salary range is about $23-35K, plus quarterly incentive and year-end bonus.

It usually takes 3-4 years before Relationship Managers are promoted to Senior Relationship Manager, or Senior Insurance Specialist/ Junior Investment consultant, depending on which path you have chosen. The monthly salary range for this rank is $42K-50K, plus year-end bonus. Sales roles will usually offer a quarterly incentive as well.

The next level up would be Private Bank Relationship Manager or Semi-private Relationship Manager. The salary range will be $60-80K+, plus quarterly incentive and year-end bonus. To qualify for promotion, one must have accumulated USD$50million worth of assets in their clientele portfolio together with a detailed business development plan.

For those opting for a more administrative pathway from here onwards, they might apply for Branch Manager ($50K-70K), then Senior Branch Manager ($80K+), followed by District Manager ($90K-100K). Some banks offer generous incentive and bonus for these roles.

Although retirement age is generally set at 55, those acquired valuable clientele and networks may have more power to negotiate their gracious retreats.

Strategies to get ahead fast

Overall speaking, working in retail banks requires exceptional communication and people skills as you will be dealing with very personal information of your clients. It is an art to win the trust of your clients in your brief encounters.

Once you have master that, there are various strategies to get you ahead of others.

Although job hopping could be frowned upon in some other industries, it is very much accepted in the banking and finance sector in Hong Kong. It is one of the fastest ways to get a salary increase and is common to have a 15-20 per cent increase for each move.

Not all job-hopping is equal, however. One should aim at getting into branches at more central locations than getting into banks of bigger names. At this point, approaching a recruitment consultant is desirable as they should have insider information regarding the branch locations in need of placements.