Unregistered |
18-04-2020 03:41 PM |
The problem with all retail banking RM roles (be it private banking, treasures or personal banking) right now is that they're getting devastated by covid. With branches closed and safe distancing measures in place, these sales ppl are getting hit hard, especially since most of their salary is commission-based. Note that this is only for the short-term. Over the longer-term, the tech threat looms big. With online banking, mobile banking apps and even robo-advisors coming into play over the past few years, the future of retail banking looks bleak. These sales ppl typically rely on face-to-face meetings to generate their sales, where they can sweet-talk the client. Charisma is their main weapon. Poorly informed uncles and aunties who are ill at ease with digital banking solutions are their main targets (this is esp true for personal banking and treasures). However, as this group learns how to do their banking online and on their phones in the time of covid, many will get used to it and even come to prefer it, such that even after covid has passed, they will continue to bank online. No doubt many of you have seen the meme of covid driving the digital transformation of companies. It is driving the adoption of digital solutions for individuals as well (and not just in banking), and those in sales are all the poorer for it. Another factor to consider is that this group is of an advanced age already and thus their incomes have stagnated (or even dropped to 0 for those that retire). The young and even middle-aged that are actively climbing the corporate ladder and seeing their incomes rise are much more tech-savvy and prefer to take a more hands-on approach towards investment, to the detriment of financial advisors. All in all, the future prospects of retail banking RMs isn't bright.
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