September 13th 2014

CEO Interview: Morgan Stanley Private Wealth Management

Charle Ma! o" Morgan Stanley Private Wealth Management #i$%e how the ban! #i""erentiate
itel" in &ia' an# e(plain how it i approa$hing re$r%itment an# talent management to a$hieve it
e(panion plan)
Date: *%ne 2010
Tags: +al%e propoition' ,i""erentiation' -iring' .alent #evelopment
In a##ition to it $ale in term o" pro#%$t an# e(pertie' one o" Morgan Stanley/ !ey
#i""erentiating "a$tor in &ia i the tability an# e(perien$e o" it wealth management team
.o #eliver 0%ality a#vi$e to $lient' the ban! p%t a#vier thro%gh a $omprehenive
apprenti$ehip programme to en%re they are $om"ortable an# "amiliar with it pro#%$t an#
ervi$e when meeting $lient
.o e(pan# in &ia' Morgan Stanley plan to e(pan# organi$ally o it ha ma#e re$r%iting an#
talent management !ey to it growth trategy
.he ban! i loo!ing "or people with goo# e#%$ation' lang%age' ale an# preentation !ill 1
b%t mot importantly i peronality an# the ability to win $lient/ tr%t
Differentiation
2ollowing it merger with Smith 3arney' Morgan Stanley be$ame the larget wealth management
provi#er globally with 14'0005pl% bro!er an# 6S71)8 trillion in aet 1 giving the "irm
igni"i$ant $ale in term o" pro#%$t an# e(pertie' ai# Charle Ma! in an interview)
.he ban! alo ha a trong intit%tional "ran$hie' he a##e#' with it pro#%$t' reear$h an#
invetment ban!ing #iviion all "amo% in &ia)
When it $ome to #i""erentiating it b%ine in &ia' perhap mot importantly' ai# Ma!' i the
tability o" Morgan Stanley/ &ian wealth management team 1 whi$h motly ha more than 19 to
20 year with the "irm in the in#%try)
When it $ome to #elivering 0%ality a#vi$e to $lient' thi tart with the ele$tion pro$e)
Ma! ai# the ban!/ approa$h i to hire a#vier "rom the top b%ine $hool' train them' p%t them
into team an# provi#e them with mentoring)
&"ter everal year o" thi apprenti$ehip programme' Ma! ai# that a#vier who meet with $lient
are a lot more $om"ortable an# "amiliar with Morgan Stanley/ pro#%$t)
Expanding in Asia sustainably
2ollowing the merger with Smith 3arney' more than :0; o" Morgan Stanley/ b%ine wa
$on$entrate# in the 6S' giving the ban! no $hoi$e b%t to e(pan# in &ia' E%rope' <atin &meri$a an#
EME&' ai# Ma!)
&ltho%gh there are two way to e(pan# 1 either organi$ally or thro%gh a$0%iition 1 Ma! ai# that
in$e hiring people in &ia i very $otly' pl% the $hoi$e are limite#' the "irm #e$i#e# to e(pan#
organi$ally)
&n# re$ogniing that re$r%iting an# hiring to be the mot important part o" thi trategy' Ma! name#
=i$! Chan a hea# o" re$r%itment an# talent management in &ia)
2rom the vario% option "or growing the b%ine' Ma! ai# the bet approa$h i to %e ea$h one
e0%ally)
2irt i hiring laterally "rom $ompetitor) Se$on#ly i loo!ing internally at people who might want
to $hange $areer 1 thee type o" $reative hire might $ome "rom people in the invetment ban!ing
or a$$o%nting #iviion' or they might be people in the tr%t b%ine or thoe who have been elling
in%ran$e an# have a goo# ale ba$!gro%n# an# now want to be private ban!er) .hir#ly i hiring
people "rom gra#%ate $hool 1 people who $ome in a analyt or ao$iate an# then get traine#)
The right qualities and attributes
When trying to "in# the right type o" $lient a#vier' ome o" the thing whi$h Ma! ai# are
important are goo# e#%$ation' lang%age !ill an# ethni$ ba$!gro%n#) 2or e(ample' he e(plaine#'
Morgan Stanley li!e to hire Chinee people to $over the China mar!et)
Selling an# preentation !ill are alo important' b%t perhap the mot $r%$ial thing when #ealing
with private $lient i peronality' he ai#)
&#vier nee# the type o" peronality whi$h gain people/ tr%t' he e(plaine#' thro%gh being
arti$%late an# getting i#ea a$ro in imple layman/ term)
Servicing ultra high net worth individuals
.he type o" pro#%$t an# ervi$e whi$h the top5tier o" the %ltra high net worth in#ivi#%al
>6-=WI? in &ia are loo!ing "or "rom their private ban! in$l%#e private e0%ity' #ire$t invetment
an# $o5invetment opport%nitie' $orporate "inan$e a#vi$e' $ornertone invetment' an# big blo$!
tra#e)
.hee are thing whi$h many private ban! $annot provi#e' ai# Ma!' epe$ially the maller one)
& a re%lt' he a##e#' 6-=WI $ome to Morgan Stanley "or a$$e to thee type o" opport%nitie
given that the ban! i well5!nown "or invetment ban!ing a well a having it own $orporate
a#viory ervi$e)
@ -%bbi >-A? <imite# 2012