JP Morgan Private Banking interview

Hey yall,

I have a first round interview with JP Morgan for an FT Analyst role in Private Banking. Most of my experience has been in IBD so I not very aware of the types of questions one can expect in a private banking interview.

Could anyone give me any pointers as to some good websites or what types of technical questions are usually asked of private banking analysts?

Many thanks

 

I can shed some light on this:

JPM PB is divided into 2 Sections: PB Products and Integrated teams. You could also include a third branch (PWM) but that is usually for clients with much smaller net worth (typical PB clients have 25 million + net worth).

Depending on where you are applying, you may be placed in a Products Team or an Integrated Team (client facing advisors). Products people tend be centered in their NYC office at 270 Park Ave while others are spread all over the country. Obviously, for most entry level analysts, products groups are more sought after because they are perceived to be more "challenging" and involve more technical work. However, products groups only hire a very limited number of SA and FT every year.

Products groups tend to be divided into a large number of smaller specialist groups like: PB Alternative Investments (Hedge Fund team, Private Equity Team, etc.), PB Fixed Income, Currency, and Commodities (FICC, fully equipped with their own sales and trading desks almost like IB's S&T), and others like Equities Derivatives, OTC, and plain vanilla equities trading. PB Products, just like their Integrated teams, are very very diverse with lots of avenues of opportunity. Because of the size of their clients, JPM PB almost operates like a BB investment bank with a full range of services ranging from research, sales and trading, and investment advisory. It is literally of one the best, if not the best, Private Banking group in the world.

A lot of interns and prospective candidates tend to look down upon the PB business, preferring the typical IBD route. I can tell you that JPM's PB business can offer an equally dazzling array of products and services and lots of potential for internal mobility and advancement. JPM Asset Management is also one of the most friendly employers that you can find in today's market environment.

Hope you get the job!

 
12345C3PO:
I can shed some light on this:

JPM PB is divided into 2 Sections: PB Products and Integrated teams. You could also include a third branch (PWM) but that is usually for clients with much smaller net worth (typical PB clients have 25 million + net worth).

Depending on where you are applying, you may be placed in a Products Team or an Integrated Team (client facing advisors). Products people tend be centered in their NYC office at 270 Park Ave while others are spread all over the country. Obviously, for most entry level analysts, products groups are more sought after because they are perceived to be more "challenging" and involve more technical work. However, products groups only hire a very limited number of SA and FT every year.

Products groups tend to be divided into a large number of smaller specialist groups like: PB Alternative Investments (Hedge Fund team, Private Equity Team, etc.), PB Fixed Income, Currency, and Commodities (FICC, fully equipped with their own sales and trading desks almost like IB's S&T), and others like Equities Derivatives, OTC, and plain vanilla equities trading. PB Products, just like their Integrated teams, are very very diverse with lots of avenues of opportunity. Because of the size of their clients, JPM PB almost operates like a BB investment bank with a full range of services ranging from research, sales and trading, and investment advisory. It is literally of one the best, if not the best, Private Banking group in the world.

A lot of interns and prospective candidates tend to look down upon the PB business, preferring the typical IBD route. I can tell you that JPM's PB business can offer an equally dazzling array of products and services and lots of potential for internal mobility and advancement. JPM Asset Management is also one of the most friendly employers that you can find in today's market environment.

Hope you get the job!

^this^

except I am pretty sure FI and Currency&Commodity are two separate groups and I am pretty sure they have a asset allocation group and a risk management team.

 
Best Response

Ah, thats a tough one, but I will take a shot.

Maybe in IBD, 30% of the time, you are staying up all night doing graphic design for a pitch book. Maybe OP felt like his brain was atrophying, because 70% of the work didn't require his brain. Maybe he doesn't like the hours and need a life. Maybe he likes financial markets more than the backward-looking valuation. Maybe he is tired of being lied to by companies' management. Maybe he realize the market is so correlated these days, that fundamental valuation - bottom up approach is getting more and more useless. Maybe it is because IBD only hires 1-2 FT analysts, that he doesn't feel like struggling through the process for something he is not passionate about. Maybe he is innately a contrarian, who doesn't like to follow the herd. Maybe he doesn't care about prestige. Maybe he understands that, as long as he is smart and put in sufficient effort, he is gonna make a shit ton of money no matter where. Maybe he wants to work in a position where he has a bigger edge. Maybe he is doing some thinking on his own...

Maybe for all reasons listed above.

just my $0.02... ;P

 

The reason why I applied to this position at JPM are for many of the reasons stated above by Gekko. I could also add that the old school advisory business had pretty much gone and i think that IBD is something quite different now that i am not sure i am made for. I wanted to go into a relationships based business and IBD is slowly moving away from that as client relationships become increasingly institutionalized.

So if I understand correctly from your comments above i need to have a good idea about the markets in general, ie stocks to pick to invest in. I would actually be more interested to go into one JPMs Integrated team (im not too hot on technicals)

 

Even in integrated team, you would need some market knowledge. I think you should at least be able to talk about markets. Probably not as detailed as which stocks to pick. But more generally, you should know which asset class would perform better in the current environment. IMHO, 80% of asset management is investing in the right asset class, than doing fundamental analysis to pick the individual stocks, bonds or commodities.

 
GekkotheGreat:
Even in integrated team, you would need some market knowledge. I think you should at least be able to talk about markets. Probably not as detailed as which stocks to pick. But more generally, you should know which asset class would perform better in the current environment. IMHO, 80% of asset management is investing in the right asset class, than doing fundamental analysis to pick the individual stocks, bonds or commodities.

@GekkotheGreat hit the nail on the head. You most likely will not be asked anything about specific stocks or accounting technicals. Focus on asset allocation and general trends in the market. Have an answer for why you are interested in finance and what you do to follow the markets (beyond WSJ, CNBC, etc.). Most importantly, be relaxed, conversational, and show a real interest in the industry. PB is all about relationships (even internally) and they need to know you can handle that. Best of luck.

 

What makes product groups more technical? What kind of work would an entry-level analyst do in a product group? What experience and skills are required for a PB analyst?

 
rjohnmicah:
Would a PB analyst be exposed or educated at all in security analysis?

Depends on the group. Even in the specific product groups you won't really be analysing the product(s) as most of the time you'll be executing small trades. Once you progress to an Investor position or go into the Portfolio groups you start doing all the analysis. Also, there's a lot of communication between PB and AM.

 

wow. I am back... a year without WSO. hmm, JENS88, thank you. lol

For all of you who hasn't done with final round yet. I have one advice for you. Prepare stories to show you have awesome relationship management skills. My experience tells me that this is way more important than your market knowledge. Good luck out there.

 

Sorry if this is too late. I've just had my final interview with JPM PB, PM me if you'd like advice on the questions, they aren't very difficult. After the 7th interviewer you begin to get the gist of things....

 
cmc342:
Sorry if this is too late. I've just had my final interview with JPM PB, PM me if you'd like advice on the questions, they aren't very difficult. After the 7th interviewer you begin to get the gist of things....

Hi, I will be having a final interview with JPM PB soon too, which office were you interviewing for? Would you mind giving some advice regarding how to best prepare myself?

Thanks a lot! (I can't PM you cuz i don't have enough banana points :s)

 

I was offered a FT over Thanksgiving break, but I'm pretty sure my experience was not typical.. It's in a smaller market (think l Columbus, Jacksonville, Denver). But I phone interviewed with two analysts who are already there and they hit me with technicals. Not too bad, just market currents, bond pricing, and basic functions of debt/equity. Passed that, then went on to talk to Banker and he was all fit. I didn't really have the Superday experience.

 

JPM has a cute little section about career changers, which i would fit in to. I've been a hotel manager for several years now, but graduated with a BS in Economics with a 3.5 and 6 extra hours in Econometrics in 2011. I am MOS master level trained in Excel as well. Am I prospectively the type of career changer they are looking for?

 

tan, if you had a banana for every time you've had to post a link how many bananas would you have? Wait a second...

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Haha, the best part of this is that the above link goes to a thread where tan just posted another link. That other link leads to a thread where he posted 2 more links. It's like a scavenger hunt...

 

I actually didn't neg you for that, I was trying to imply the people that post these questions should do a forum search, but oh well

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 
Forex509:
So I got an interview with JP Morgans private banking summer internship, and I was wondering if anyone had some insight to this, or private banking as a whole? Im not sure if private banking is something Im very interested in, but I'm keeping an open mind as I apply to places.

Thanks!

You're in the wrong forum, buddy. Private banking isn't at all the same thing as private equity; private banking is more along the lines of private wealth management, where you're performing different services for wealthy individuals (i.e. recommending investments, helping them plan their estate/savings, etc. I don't work in PWM or Private Banking so I'm not totally sure, but these seem to be the kinds of services offered).

Private equity, on the other hand, is a field where you're actively making investments buy acquiring whole companies, levering them up, and then paying down debt and exiting some time later (typically 3-5 years). That's a very broad generalization, but hopefully you can see that you might get more of a response in the Asset Management or general IBD forum.

 

My buddy worked over there ... I work within PB space at another out fit.

  1. Is it true that gaining the promotion from analyst to associate (by your third year) is extremely difficult? If on grad scheme, no. They made this within a year or so, but did intern at JPM prior to joining to the grad scheme. not sure what this would be like for someone outwith.

  2. Is the salary-bonus structure only for analysts/associates or does it hold for VP level and above as well?

I would imagine across the various levels, if you are a revenue generator then you gotta get paid :) As you move up the ranks you obviously can take the road towards management and therefore aren't in the trenches as much fighting for $$$.

  1. Generally, what are the CONS for JPM Private Banking? Not sure, i'm guessing as U.S boutique they may have a more cut throat culture in comparison to its European cousins. I did hear they paid much better for those who are big hitters.

Just depends what you want dude. PB is a funny world, I stumbled into it ... and still here trying to set the world on fire.lol.

 
  1. Typically the associate class is 50/50 internal promotions frm the analyst pool and MBA/lateral hires. My analyst class started with roughly 200 kids and by the time the last year of the analyst program came we probably had half if not more drop out. 3rd years that wish to move on to associate go through an assessment day with different role plays etc...and of those who stay for the 3 years 70-80% pass and move on to associate.
  2. Base and Bonus across all levels.
  3. With base and bonus it can frustrate some people. On one hand more consistent pay checks are great but working on commission gives you unlimited upside with more risk of course. Analysts come in relatively high on the PB pay scale but earnings curve tends to be a tad gradual.
 

I applied to the PB analyst program but the only position open was Nashville( COL is good but prob not much $$ in that region..). Currently, I am in PWM MO at a BB for 2 yrs. I have an active Series 7(does this help make me stand out? thinking of taking Series 66 as its self sponsored- my bank wont pay for it since i sit in Ops) but graduated in 2012- non target ,state school. Has anyone seen guys transition from PWM Ops ? I don't care if i start at a 1st yr again if Im in the right role, it wont matter. What do you feel my chances are?

 

It's essentially a sales role at the end of the day, so it's not for everyone. If you have connections, are good at kissing rich people's ass, and reeling them in, then it's the right job. On the other hand, if you like intellectually challenging work, doing actual research/modeling/valuation, etc., then it's not right for you.

 

Well, DCF and accounting are not the standard for PB. Just be aware of what is going in the markets, what do you think about things like oil prices, what is QE, how would you value a company (in basic terms), what is HNW/UHNW, what investment ideas do you like, and rarely explain some of the ratios like P/E, debt/EBITDA, etc... Mostly those interviews are fit, not too heavy on the technical side.

 

Wkaplan- when did you hear about your final round- in NY or regional? Biznazzman- I went through the first round and was told to expect next steps within a week or two. Anyone else hear anything about this summer's recruiting?

 
MotivatedMonkey:
Wkaplan- when did you hear about your final round- in NY or regional? Biznazzman- I went through the first round and was told to expect next steps within a week or two. Anyone else hear anything about this summer's recruiting?

It took them 2 weeks to get back to me about the 2nd round after my phone call.

 

I read somewhere on these boards that JP Morgan PB uses different salary options for its analysts that aren't commission based or something and this is what that sets them apart. My question (in 2 parts):

1) When they ask "Why JP Morgan PB?" is this somethign I should mention? Or is the issue of pay never something you sohuld talk about even though I would say this structure increases productivity and develops better client relationships or something. 2) Well, haha I don't really get how them not being paid based on comission helps. If they aren't getting a commission wouldn't they theoretically be less motivated to work? Can someone clarify this for me?

Of course I could have this all wrong, haha. Thanks

 

Yeah I know that generally that's the case, but from what I've read its what makes them unique. I wouldn't say that "OH the pay is better at JP Morgan thats why I want to work here", but rather "The unique pay structure fosters better client relationships as the bankers are more _______ than at other banks." But is that taboo too? Again I'm a bit confused on how having a non-commission based system helps (so someone please explain that to me, and then I can fully develop what I mean).

This is what tan86 wrote in one of the other threads (follow the link posted at the top-> then the first link posted in that thread.

"JPM PB/PWM is best in class, with Goldman being a close second. You are right in that they differentiate themselves through their pay structure. They use that as a way to win clients over their competitors who use the brokerage/commission model. That is, we (JPM) have are interests aligned with you (client) since we get paid on growing our client assets and acquiring new clients, not by sellign you the flavor of the month stock/bond/hedge fund, etc.

The structure is interesting in that the front office/advisor teams rely almost soley on the strategy/solutions teams in NYC for the info that they relay to clients. So the strategy team is the one who sets the asset allocation, macro strategy, manager due diligence, etc. And all that info is then fed to the front office advisors so that they can focus on their clients (rather than focusing on researching a stock or what interest rates are going to do, for example)."

 

Vault lists it at 76, but I can't imagine that being the case.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

A lot of this info has been posted in the past. I advise you look up tan86 and read everything he has written. The guy is smart, provides great insight, and communicates it well

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

I'm graduating June 2016. Does anyone actually get interviews from blindly applying online? I've never heard of anyone getting one without some type of connection or on-campus recruiting. I believe my resume is fine, I've gone to multiple resume advisers. I think it's just my lack of network to be honest.

 

Yes, these are good questions, thank u! However I don't know how to deal with other questions....I mean, should I consider: Tax savings? Trustee? Retirement plan? If he/she has someone to protect....like children?

Which kind of questions are the most appropriate ones? Which kind of solutions I may suggest?

I am reading the JP website and understanding how the PB function is structured but I don't know how to deal with ultra high net worth individuals!

Thanks in advance!!

 

Yes, there is a difference. PWM competes with all the big, major wealth management firms, but also Edward Jones, Scottrade, and 'local' wealth management shops. PB competes only with other major banks, and only with ultra-hnw people. The standard is $10MM in assets, not including your first home for PB.

 

I have a PB interview coming up as well. I already interviewed for JP AM and it was pretty straight forward with mostly behavioral, then why jpm/am, and some technical portfolio questions. Should PB be much different?

 

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