Paperjam: What’s your philosophy when it comes to relationship management?
Stéphane Pardini: We look for client advisors (which is how we refer to ‘relationship managers’ at Quintet, reflecting the advisory nature of the role) who possess strong technical skills and expertise, knowledge of relevant regulations and sustainability topics, and familiarity with digital tools and trends.
It is a complex profession--far more than in the past--so there is a baseline skillset they need to have or to show the appetite to acquire through training. At Quintet Luxembourg, that includes familiarity with our asset servicing and financial intermediaries business line. While the technical requirements are demanding, interpersonal skills are even more important. At Quintet, we look for people with a collaborative mindset, who embrace teamwork and recognise that we can only do the right thing for our clients by serving them as a team
Client advisors must be active, empathetic listeners. They must be able to communicate clearly and simply--cutting through complex concepts and technical jargon to address the individual needs of the clients we have the opportunity to serve. They must be honest and transparent, and have an almost indefinable quality that allows them to earn the role of trusted advisor.
Hélie de Cornois: The firm’s philosophy is to put the family at the core of our business, whereas wealth managers focus primarily or solely on a family’s assets. What is important for us is supporting a family in maintaining and building their legacy over the long term. We approach this by focusing equal attention on preserving a family’s cultural, social and intellectual capital alongside their financial capital. We work with several generations of a family at once, as required, to ensure all perspectives are heard and as smooth a transition as possible to the next generation is implemented.
How are client demands changing?
SP: Client requirements are constantly evolving, especially today in the context of the largest intergenerational wealth transfer in history. An increasingly significant trend is the rise of family offices and their role in wealth management. Many clients now have multiple banking relationships, which are managed by family offices staffed by seasoned financial services professionals. This elevates the expectations for private banks in terms of transparency, performance and long-term value creation. As family office intermediation continues to accelerate, it will further raise the bar for the skills and knowledge required of client advisors.
HC: Client requirements are constantly evolving in an environment of increasing complexity, particularly for those families who operate cross-border. The regulatory outlook in Europe, in particular, has undergone significant change over the last decade, and this demands strong relationships and networks in local jurisdictions. It has rarely been so important to invest time in developing local relationships.
What skills do relationship managers need?
SP: A great client advisor possesses a strong mix of emotional and cognitive intelligence. They are first and foremost an active, empathetic listener who can earn the trust of a client by understanding their unique needs. In parallel, they have a broad technical skillset--spanning everything from philanthropy to private equity and including knowledge of relevant regulations, sustainability topics and digital trends.
HC: Successful relationship managers need to be very well-networked and proactive in all of their professional dealings. They also need to be highly agile and versatile and able to demonstrate a capacity for thinking quickly on their feet.
Is it hard to recruit for those skills?
SP: Recruiting client advisors with the right blend of emotional and cognitive intelligence, along with strong technical skills and expertise, is particularly challenging in Luxembourg, especially for senior roles. This stems partly from historical changes in the grand duchy, notably the end of banking secrecy in 2013 which transformed the private banking sector. As a result, it is often easier to recruit a 30-year-old client advisor than one over 50. The private banking landscape has evolved significantly over the past decade, and today’s client advisors must possess the necessary skills and expertise to meet contemporary challenges.
Are there any constants of the role?
SP: Yes: almost everyone is generally uncomfortable talking about money, and client advisors must be able to earn the trust of the families they serve so they can have transparent conversations about a subject that is so frequently taboo. That can be very, very difficult. When I interview candidates, I often ask myself: if I won the Euromillions lottery tomorrow, would I trust the person sitting across from me to manage my newfound wealth? If the answer is yes, then a job offer is quite likely to follow.
And evolutions?
HC: The role has professionalised significantly as the private wealth management industry has evolved quickly from a fairly niche sector to a major constituent of the financial services landscape. Relationship managers are now, by necessity, much more team-oriented as they often have to deal with a plethora of advisors for one client, such as--for example--wealth planners and discretionary portfolio investment specialists.
Technology has also changed the operational nature of the relationship manager’s role for the better. The increasing use of disruptive technologies, such as AI, big data and blockchain, is welcomed by wealth managers, 90% of whom--according to PWC’s 2023 Global Asset and Wealth Management Survey--believe such technologies will drive improved outcomes and returns for portfolios.
That said, while technology enables us to improve efficiencies, ultimately we are a business built on the strength of our long-term, close relationships with clients. Technology should be viewed as a tool to support the highly specific, responsive and nuanced relationship-building skills that our relationship managers need to support their clients effectively.