Exodus to e-commerce

Private banking executives are leaving the industry in droves as the lure of the Internet hits home.

Private banking executives are leaving the industry in droves as the lure of the Internet hits home.

Despite the recent slide in stock market valuations, the prospect of a lucrative ca-reer in the new economy has claimed three senior private banking executives in re-cent months.

Just a fortnight ago, Macquarie private banking chief Tony Bates shocked the Asia Pacific Private Banking conference with the announcement of his immediate de-parture from Macquarie for the greener e-commerce pastures. Bates would not be drawn on the name of his new employer but confirmed it was in the e-commerce sector.

Bates’ departure follows that of his predecessor Andrew Barnes earlier this year who has also taken up a role in an Internet-based company as has former Westpac private banking head Sally Herman.

Bates says he expects more people to depart the industry in coming months as pri-vate banking groups feel the heat from Internet brokers; a view echoed by recruit-ment specialist Michael Markiewicz.

The managing director of Hamilton James & Bruce says the exodus has created a drought of private banking talent.

“At the moment there is a critical shortage of people in the private banking indus-try. We need more space and more people,” he says.

Markiewicz says the departures are a symptom of a general malaise within the of-fices of private bankers. He reckons private banks need to create an workplace en-vironment that will retain executives.