Interview with Oddo BHF board member: “Private banking has failed to invest in young talent”

Nevertheless, we are currently in a phase where we want and can grow organically. We are attracting talented individuals who are attracted to the Oddo BHF brand. This is, of course, partly due to the strong consolidation of private banks. But also because we are a family-run bank with strong equity, a good rating, and more than €156 billion in assets under management within the group. In addition, our advisors are free to make their own investment decisions.

And when they're growing so strongly organically—we raise between two and four billion euros in new capital every year in Germany alone—it makes little sense to be an active player in the industry's consolidation. We're being approached and are also looking at banks. But the costs of a merger are high.

We feel a strong commitment to our customers, employees, and shareholders. That's why we've left the negotiating table several times in recent years, saying, "This isn't for us."

So, no acquisitions are planned anytime soon. Do you plan to open additional locations?

Häger: With a branch network of 17 locations, we have one of the broadest territorial coverages of any private bank in Germany and an ideal, deeply rooted regional positioning. We are represented from Hamburg to Munich, with a focus on North Rhine-Westphalia and the Rhine-Main region. In Germany, you need broad geographical coverage. You need to be visible. You need to understand the different entrepreneurial mindsets. I think we have covered this perfectly with our locations.

Perhaps at some point, beyond Berlin, we'll open a location in Dresden in eastern Germany. There are good medium-sized companies there, as well as a growing startup scene. But for us, the development of a location always depends on the talent we find. We don't go to a city just to be in a city. Our rule is "Who comes before what." That means it's about the people: their personality, their experience, their energy, and their networks.

An example: Three years ago, we moved to Rottweil. I would never have considered opening a location there before. But the people I met there – our local team – convinced me. We were in talks for three years. And as a bank, we realized that Baden-Württemberg would be better served with two or three locations.

But first and foremost, it was about the people who inspired me, with their expertise and their virtues, which are crucial in wealth management. They are hardworking, honest, sincere, but also humble, because every day they sit in front of entrepreneurs whose entrepreneurial achievements they, as bankers, will never surpass, and for whom they have respect.

How do you find new employees with these qualities?

Häger: First of all, the entire private banking industry has failed to invest in young talent over the past 25 years. Advisors have aged along with their clients. The entire wealth management and private banking industry will face a major demographic problem.

We've decided that we won't be looking for employees who have already worked for many banks. We want to solve our demographic problem by developing young talent. This year alone, I've hired 22 young people: university graduates or young private bankers under 30. We introduce them to the business through specific courses, such as the Certified Wealth Advisor program from the Frankfurt School of Finance & Management, or similar training, and let them learn alongside experienced advisors. This is how we're successful.

And there's another advantage: Our young consultants are closer to the next generation. We give them the freedom to develop their own concepts for working with the next generation of our family business owners. They are more open to new media, tools, and ways to acquire clients.

In France, this has always been the norm at Oddo BHF. My team there is also, on average, five to ten years younger. But success isn't a question of age. What matters are curiosity, creativity, a willingness to serve, and the virtues I mentioned earlier.

We don't use headhunters, but rather our own networks. It's also been helpful that over the past nine years I've hired experienced colleagues at the management level who had to bring one thing with them: a passion for people.

What does this mean for job interviews?

Häger: Oddo BHF doesn't need a management organization, but a customer organization. Our rule: The interests of the customers always come first, the security and future of the bank comes second, and our own interests, that is, the interests of all partners, managers, and our employees, come third. The latter must be subordinate to the interests of the customers and the interests of the bank's shareholders. Only then can we be credible and successful with our clients in the long term. This triad begins right at the top with Philippe Oddo . We promote a customer-oriented culture. And only people who demonstrate that they bring this to the table in the first, second, third, and even fifth interview are a good fit for us.

Questions about organizational charts, management, team sizes, compensation, and company cars are disruptive in the first, second, and even third interviews. They show that they are shaping the mindset of the interviewer. I always imagine an imaginary client present at the interview and consider whether they would enjoy working with the candidate. It's not always primarily about resumes. It's about the personality, attitude, and values that someone brings to the table, which motivate and guide them.

Let’s return briefly to the private banks’ problem of recruiting young talent: Is this a home-made problem?

Häger: Yes. It's a homegrown problem. Young, ambitious people naturally wonder about their career and development opportunities within the bank. However, in a business where advisors define themselves by their client book and access to clients, many find it difficult to let others into these client relationships. In consulting, it's common to work in mixed teams; in private banking, there are many advisors who have gone their own way.

At Oddo BHF, we prioritize teamwork over individual interests: Every client has the right to get to know different employees. We build teams that include a portfolio manager, a consultant, an assistant, and often a junior colleague. This is the only way junior employees can experience the excitement of wealth management.

About the interviewee: Joachim Häger has been a member of the Oddo BHF Board of Directors since 2016 and is responsible, among other things, for Wealth Management. Previously, he served as Head of Wealth Management at Deutsche Bank for almost ten years. Since February 2024, he has also been a member of the Board of Directors of the Oddo BHF Foundation.