A senior executive of the Swiss financial services company, Union Bank of Switzerland, said the firm plans to employ a smaller number of trainees next year but will devote two to three times more on educating and training them to become financial advisers. This is part of the latest sign of the financial firm’s effort to satisfy richer clients and deal with an advanced years workforce.
UBS New Trading Program
Tom Naratil, President of UBS Wealth Management Americas, said that the company would accept 30 percent lesser trainees and they would preferably look for employees who already had more work experience so they could work with seasoned advisers to serve current and future clients.
“The client we need to serve is the wealthiest client we’ve ever had in the history,” Naratil said in a statement.
“We can have fewer advisers but they need to be more highly skilled to meet those clients’ needs.”
In the coming several decades, more than $30 trillion riches are believed to be passed from Baby Boomers to inheritors as the present age of clients. At present, high net worth customers handle more than a third of the wealth in the United States, and more than 67 percent are older than 60.
As those customers begin to hand riches to the next generation, older advisers get anxious on how to cope up with new money generations, some of whom choose computers over humans.
Naratil is hoping that by bringing apprentices from professions like military or pharmaceutical sales with seasoned advisers, current advisers will increase productivity and they will be more well-positioned to take over current adviser’s account in the future.
“Others are still playing a scale game,” Naratil said. “Our success relies on improving the productivity of our advisers because if we improve their productivity, we see better results,” he added.
According to a report, UBS is not the only one to implement such kind of new recruitment plan. In fact, Bank of America Merrill Lynch recently announced it was boosting efforts to hire and teach younger adviser for all units, from its high-end Private Banking and Investment Group to the brokers situated in bank branches.
Historically, the training programs made by Wall Street have high failure rates with as many as 50
The Swiss financial services firm is already in the forefront for average revenue produced per adviser, partially because its advisers only work with clients who have more than $1 million in their accounts. On one hand, Morgan Stanley and Bank of America placed the minimum for their clients at $250, 000.
On average, UBS’s advisors, who are 6, 915 in number, produced $1.2 million in revenue as of the second quarter this year. Meanwhile, Morgan Stanley’s 15,777 advisers on average produced $1.05 million in the second quarter and Bank of America Merrill Lynch’s advisers earned an average $1.04 million each, which includes new ones.
UBS’ new training plan will last for 3 years and trainees will be compensated for the first two years.
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