19Jul2024
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Unlocking the ‘Bad Leaver’ Status: Navigating Private Banking Challenges

Disclaimer: The views and opinions expressed in the vapa Swiss independent wealth management blog posts featured on this page are solely my own and do not necessarily represent the views of any institutions or organisations I may be associated with. These posts are intended to share personal insights and perspectives and should not be interpreted as official statements or positions of any affiliated entities.

In private banking, the label “Bad Leaver” is primarily awarded to successful Relationship Managers. This honorary status has implications that affect one’s professional life and private accounts with their former employer. An ironic twist: You now know your “enemy” for the future.🔮

This treatment is a wealth management industry-specific problem. Imagine this: I work in the local administration of my hometown. I accepted another position in a neighbouring municipality and asked to leave my residence. Well, maybe that’s a bit of a stretch, but the sentiment is similar.

Switching to another bank might make the “Bad Leaver” status seem irrelevant. After all, one still has to woo clients to the new employer according to industry rules. But what about moving to an independent wealth manager? 💼

In this case, the client still has to switch banks, but now the client is yours and is no longer part of a carefully designed bank brand strategy. The “bad leaver” status primarily refers to older promises made by wealth managers to their clients: “Join me, and the fee schedule remains the same. I am paid by the fees the bank collects-“

“Bad Leaver” sounds harsh. But it’s less intimidating than one might think. It means considerable effort, whether switching to another bank or an independent wealth manager. However, the latter offers even more opportunities like a “wallet-share-increase” across various custodian banks, holistic wealth management services, or an open product platform.🌍

In conclusion, an observation: Employers who assign the “Bad Leaver” status have made a mistake. They failed to interpret the signals from their employees accurately and did not cater to their needs. Content and valued employees? They wouldn’t even consider switching.🚫

Source: LinkedIn

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A discussion on the implications of the “Bad Leaver” status in private banking

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