How sales enablement can quadruple your private banking AUM sales funnel

Private banks are essentially sales organisations created to win the trust of high net worth individuals which is a tall order for most people. These people may not be in the financial sector but they are usually savvy in their own field of business. With the explosion of information on the Internet, the buying process have changed where these prospects consume content before deciding on whether to engage your company.

Sales enablement is the process of allowing sales representative to sell at higher velocity and increase your sales funnel. If it takes 1 year for your new private banker to hit $50 million in assets under management (AUM), then through the sales enablement process, it should take no more than 6 months. Does this sound too good to be true in an area where multi-family offices and other private banks are competing against the expanding pool of clients?

How can enabling financial services and private banking sales teams double sales?

The answer to how enabling sales teams can allow your sales representatives to sell at higher velocity lies in its role and positioning. Sales enablement can be seen as a hybrid between marketing and sales but it is solely focused in direct activities that leads to sales. It is not involved in branding or buying ads. 

From a practical perspective, sales enablers sit down with sales representatives to uncover the personas of their ideal client and how they can work towards securing them. One of the first activities would be to roll out suitable content according to the buyers’ journey. This can include awareness articles which touches on the new trends on wealth management, white paper on the state of the economy in exchange for email address for consideration and case studies on how your bank grew the wealth of your clients for them to make their decision.

It would also include incorporating an enablement tool such as CRM and marketing automation software where activities are automated and measured for its effectiveness. Leads are nurtured and would only pass it to sales when they are ripe for the picking. Sales enablers would also sit in on client calls to see how the clients are reacting to the produced content.

Suitable candidates for enabling sales.

Not every private bank is suitable for sales enablement as it involves a shift in mindset and organizational purpose. If your private bank is focused on serving your existing pool of clients, then it is not suitable. However, if you are targeting to grow your base of clients, you would need high quality content which speaks for itself. 

Someone has to talk to your private bankers and see how clients are responding to the given materials. The private bankers have to be allowed to focus on the sales part of the job instead of being bogged down by the need to locate the right materials. Qualified leads have to be brought in at a fast pace to support rapid growth.

Source: Mindtrickle

The right sales manager can move your company from undefined to a world-class private banking powerhouse, with increases proven by relevant metrics. The right sales manager would measure results and consequently refine the activities on a regular basis.

For instance, if your average asset under management is $2 million with 0.5% management fee, each client is worth $10,000 to the firm. If you can improve the lead to client conversion rate from 5% to 10% and increase the pool of qualified leads from 50 to 100 per month, then your revenue would have increased from $25,000 to $100,000. You can see how a small increase in conversion rate and qualified leads can result in a significant increase in revenue.

The Alchemise Advantage

These are realistic targets after the proper sales enablement strategy is defined and deployed. It is a process which can take between 3 to 6 months before you can see results and not an overnight success. There is basically two ways which you can do these: hire a team or hire a consultancy. Even with 1 experienced sales activation hire, it would likely cost you at least $6,000 per month or $36,000 before you can see the results. The newbie might be cheaper but the results are likely to take longer to materialize. 

Source: Hubspot

If you missed our last article, please read also 4 ways to increase your AUM growth in Singapore private banking.

Alchemise Consulting provides you the advantage and value of combining a suite of experienced industry sector focussed consultants with their low-cost, shared risk and outcome-based approach. Studies have shown that the 99% of the best sales enabled companies hit their quota. Curious how we do it?

Written by Ong Kai Kiat, Singapore – Alchemise Consulting

Register for your complimentary and confidential Business Growth Assessment. We invite you to talk to one of our Senior Consultants based in our Singapore or Australia office locations

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4 Key Ways to increase AUM growth in Singapore Private Banking

Singapore is well known as the mecca for private banking with over $2.6 trillion in assets under management or AUM and plenty of opportunities to reach out to the Asia Pacific region. Still, it is a highly competitive industry where the larger Singapore private banks can leverage on their client connections and scale of their support system.

The Financial Times reported that the biggest winner was OCBC’s Bank of Singapore which grew its assets by 44%, followed by UOB Private Bank’s 23% growth and DBS Private Bank’s 8.3% growth. There were losers too. Deutsche Bank lost 13.4% of its AUM, HSBC lost 3.6% while ANZ, Barclays and Societe Generale threw in the towel. Marquee names such as UBS and Citi barely grew by 4.5% and 3.8% respectively.

Source: efinancecareers

Private banks are faced with rising cost which tends to affect boutiques disproportionately. These rising costs and the shrinking pool of private banks put pressure on private bankers to perform to hit their AUM. They are often given 6 to 12 months to hit their AUM and revenue targets before they are sacked.

As the chief sales officer of your private bank, the vital question is how can you help these private bankers to be more efficient in their sales process. After all, if your private bank must be sold off, everyone’s job is not secure.

Distracted salespeople

The reason why most salespeople don’t perform is that they are often side-tracked by urgent activities with slight importance attached to them. Imagine the routine of the new private banker who had just completed the relevant training and is assigned his own desk. What is the first set of activities that he does?

Source: HubSpot

Besides getting to know his fellow colleagues, he is likely to start replying emails and to find out about wealth products which he can pitch to his clients. According to a Cirrus Insight study, most salespeople only spend 39% of their time selling to their clients.

In other words, your private banker should be cold calling prospects, attending networking events and parties and following up on the latest development of their clients to grow the business most of their time. While email is a good vehicle for private bankers to keep in touch with their clients, it can evolve into a major activity which may provide satisfaction but add little to the bottomline.

McKinsey studied the diary entries of sales representatives and found out that the worst performers are often fragmented in their task. They spend time in the wrong places and ignore core tasks that will help them reach their strategic objectives. One simple step to cure this would be to ask your salespeople to track their activities. Even informal tracking will allow them to have insights about their working pattern.

Avoid initiative overload

Your private banker might be the smart, attractive, endowed with people skill but they are also expensive, costing the bank between $120,000 to $750,000 per year excluding bonus. However, before a private banker can be effective beyond his own warm market, he or she needs to be supported by CRM, marketing and product platforms.

Beyond these daily functions, it is also important to have periodic strategic reviews about the effectiveness of these strategies. One common way to have a strategic review is to gather the head of departments of these units and rope in some private bankers to form a committee to review it. While your organization might save some money, it creates initiative overload where your employees either do a rush job for the strategic review or they drop their current workload leading to reduced sales.

It would be important to hire an external consultancy to conduct such reviews and free up time for your managers to develop and train the salespeople. This is a smart way to respect the time of your managers and productive sales persons.

Master calendar

The effective manner to implement respect for the time of your managers would be to create a master calendar. Think of your employees’ time as you would of scare capital. Only invest their time for projects with positive net present value. Having a master calendar would allow you to plan the activities in advance and allocate schedules to advance your key priorities.

This will allow you to root out time wasting and unnecessary activities. This will cut your private bankers’ excessive involvement in meetings and allow you to arrange overseas clients’ meetings in this same period when your private banker is scheduled to travel. A master calendar will also allow managers to cut down on reporting meetings and spend more time on performance meeting where decisions are made to correct the course of action.

Focus for success

An unprecedented amount of wealth is being created in Asia and this means unbounded opportunities for growing assets under management for the well prepared private bank. Even the largest private banks are faltering, this shows that size is not the key determining factor for success.

A boutique private bank will just have to focus on the key sales activity and provide appropriate support for their private bankers. This will allow them to overcome the smaller size of their support system and product library to create compelling value for their high net worth individuals and build a successful assets under management empire.

To help identify where you can further improve your AUM growth and sales efficiencies in Singapore, please register below to talk to our local Singaporean specialist.


If you missed our last article, feel free to read – 3 reasons for alignment of sales and marketing in financial institutions