The Three Most Effective Ways to Prospect in Private Banking
Mastering prospecting is a non-negotiable skill for successful private banking relationship managers (RMs), driving asset inflows and achieving Net New Money targets.
It includes sourcing leads and converting qualified prospects into profitable clients.
If you’re a private banker, you know very well how not prospecting effectively can lead to significant stress. The pressure from senior management to onboard new clients and secure fresh assets can become overwhelming, sometimes putting your career at risk.
We are here to help you with this.
Here are three strategies to excel in this phase of your client journey:
Disqualify Prospects
A crucial aspect of prospecting is generating qualified leads while disqualifying those who don't meet (U)HNW criteria. Many private bankers fall into the trap of the sunk cost fallacy—continuing to pursue a prospect because of the time and effort already invested despite clear signs that it's not a good fit. This often stems from a reluctance to acknowledge loss or guilt over wasted time. The key to overcoming this is awareness and the willingness to move on.
Ask yourself:
Am I continuing to pursue this lead primarily because of the time and effort I've invested rather than its potential?
Would I engage with this lead if I started from scratch today, knowing what I know now?
Does this prospect clearly meet my bank´s (U)HNW criteria, or am I holding on despite evidence to the contrary?
Remember, every minute spent on an unqualified lead takes time away from pursuing a qualified one. Value your time, and shift your focus accordingly.
2. Build a Compelling Personal Brand
Some RMs appear as natural standouts, but what truly sets them apart? These RMs are masters of their craft, constantly seeking new clients with a clear and compelling Unique Value Proposition (UVP). Knowing what makes you unique is the key to creating a successful prospecting strategy. High-performing RMs know precisely how to convey their value and tailor their approach to every prospect they encounter. Often overlooked but incredibly powerful, their personal brand is the secret weapon that gives them an edge over competitors. RMs who neglect this crucial aspect often find prospecting overwhelming and frustrating. By gaining clarity on their distinctive qualities, they accelerate their path to becoming top performers in their market.
If you want to excel at this, consider working with a coach to explore your unique strengths and crafting a compelling Unique Value Proposition (UVP) that sets you apart.
3) Master the Art of Asking for Referrals
Asking clients for referrals is crucial for success in private banking, yet few RMs are truly good at it.
Exceptional RMs are well-known for their mastery of networking and confidence in soliciting referrals—key factors essential for growing their client base and increasing fresh assets.
If you are shy or feel uncomfortable asking for referrals, here are a few steps to get you started:
Timing Matters: Choose the right moments to ask for referrals. These could be after a successful investment, a significant financial gain for the client, or any instance where they express satisfaction. Avoid asking during difficult times for the client, like mourning a loss or after a business setback.
Be Clear: When approaching a client for a referral, be clear about what you're asking. Mention that you're looking to expand your practice and that you believe their network could benefit from your expertise. So this is not just about you but also about them because you want to showcase that you are adding value to them.
Make It Easy for your clients: Facilitate the process for your clients. Give them guiding questions or topics they can discuss when making the referral. The more seamless the process, the more likely they will follow through. So, for example, give them a few of your case studies to showcase success stories from your past clients. Try to make it easy for them. Remind them of your strengths (think about your personal brand, which we touched upon previously).
Prospecting is like a muscle – it can be developed. With proper guidance and support, anyone can master it.
To learn more, contact us today.
