Difference among Relationship, Portfolio & Wealth Manager in banking?

August 3, 2019
banking courses

 

Banking careers are prestigious and have been in demand for a number of reasons. Job security, fixed hours, awesome payouts and unending demand being the most notable ones. Wealth management and investment banking are the most sought popular areas in the financial sector and this is where career aspirants with a wealth management course want to be, for the great payouts and benefits. These fields may overlap though they are very different.

Basic differences:

The investment banker is the highest-paid and offers advice and financial services to institutions and corporate entities. They deal with the acquisitions and mergers-M&A, stock splits, business restructuring, share buybacks, spinoffs, IPOs, and bond issues. They also help corporate clients in their investments for the short-term. The IB-career after a Wealth Management course is most popular and one should remember that:

  • IB and wealth management do overlap in operations.
  • The bankers in IB have bigger paychecks and obviously, work hours like 80-100 hrs per week.
  • Wealth Managers help individuals invest while IB deals with institutions and corporations.
  • The business owners and HNI clients of the wealth management bankers often need help and advice on M&As, issuances of bonds or IPOs from the banker in IB. The high-value clients are offered the services of a Relationship Manager who is their one-stop go-to for personalized services related to banking.
  • The Portfolio Manager is a specialist who offers his services in advising the WM clients on making investments and managing their portfolios for a fixed fee. Their advice is very popular since they cut-across the equity markets and IB areas. They advise on stocks, bond, IPOs, buy-outs, insurance, commodities and more.

Roles in Investment Banking:

The IB bankers need exceptional soft-skills to excel at financial management of the institutional clients and persuasive communication skills to deal in the multi-billion-dollar deals of the modern world. They advise and harbour the leveraged buyouts or hostile takeovers in M&A deals. It is exciting and pays well since the banks earn a fixed commission on these deals which are shared with the IB banker. These deals do not happen often and area result of excellent fundamental business evaluation and long hours put in by the IB banker to broker such deals.

The skills of the IB banker are hence very exacting and require knowledge not just of the financial aspects but also across many industrial realms, stock-markets, industry-specific factors, business structures, issuances of IPOs, debentures, bonds and so on. The market research analyst and the banker who is client-facing both have to collaborate on such deals to make those great presentations of deals, acquisitions, mergers and such.

They do not limit themselves to working only in The Microsoft Excel suite. Rather they make use of many tech tools to analyze huge volumes of data, draw forecasts and predictive insights from extensive research on data, and use their creative skills learned in a wealth management course. In addition to number crunching, operations specialists and account managers in IB also need to collaborate with each other.

Roles in Wealth Management:

Wealth management is a simple enough definition. Wealth managers work with clients on a one-on-one basis as against the IB bankers working with multiples of institutional and corporate clients. They manage the wealth portfolio and charge a fixed fee for their advice and services like portfolio management, managed-account services, investment accounts and such.

Wealth management services are also offered to people who have USD 50,000 to 500,000 and can include HNIs, corporate clients seeking short-term investments, and small clients who need management of their diverse portfolios.

They offer brokerage accounts helping clients to virtually invest in all instruments of their choice and also offer tax planning, retirement planning, and estate planning and management services. They are hence called client relationship managers or investment specialists.

While knowing the client and personally interacting with them is for the communicative relationship manager, the investment specialists effectively deal with the instruments they specialize in like issuances of IPOs, bonds, stocks and such. Such managers work collaboratively and a relationship manager is always assigned to the client to ensure the client’s personalized investments are managed and run effectively and at all times no matter if they are institutional clients or HNI clients.

Conclusions:

The two fields may overlap and the titles may be many. However, it all boils down to training and a wealth management course to be able to cater to diverse exacting job roles. IB is global and the more languages and banking ecosystems of foreign countries you know, the more successful you can become. Certifications like CFA, Series7 exams and such can put you on a different pedestal. A good training course is ESSENTIAL for all.

Join and enquire at Imarticus Learning today! For more details in brief and for further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

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