How to hire a Relationship Manager

RM candidates often claim AUM numbers and cross-sell ratios they cannot back up. What you need to see is how they act with a client. Do they ask about the client's needs in a set order? Or do they push whichever product pays the biggest bonus this quarter? Knowing the rules for each product is a must. An RM who sells a market-linked insurance plan as a fixed-return product creates a compliance risk. It is not real revenue. Your interview must test whether they put the client first when there is pressure to sell. Reciting product features is not enough.

Four traits set strong RMs apart from people who just push products. Asking about needs first: do they ask about the client's goals, risk appetite and cash needs before suggesting a product? Product depth: can they explain an actively managed fund versus an index fund without reading a brochure? Or term life versus whole life insurance? Keeping clients: what do they do when a client threatens to move money to another bank? Knowing the rules: do they understand KYC norms, suitability duties, and the securities and insurance rules for the products they sell?

Also check three more things. Can they talk with clients in the client's preferred language? Many wealthy clients prefer their first language for money talks. Do they know your CRM and core banking system, such as Finacle, Flexcube or Temenos? And do they review portfolios on a schedule? The best RMs review client portfolios every quarter without being asked. Average ones only call when they have a product to push.

Notice how they talk about clients. Strong candidates describe specific client situations. Examples are a retirement planning talk, a tax-saving tip or a hard talk during a market fall. Weak candidates talk in general terms about "building trust" and give no real examples.

Believing AUM claims without checking them. Every RM candidate quotes a large book. Ask them to break it down. How many clients? What mix of products? What was the retention rate? Strong candidates know their book inside out. Weak candidates give round numbers and change the subject.

Testing product knowledge but not suitability judgment. Picture an RM who knows every product but suggests a high-risk equity fund to a retired schoolteacher. That RM is a danger. Give candidates a client profile and ask what they would suggest and why. The reasoning matters more than the product they pick.

Ignoring compliance. Securities and insurance regulators hand out real, costly fines for mis-selling. Ask the candidate what they do when a client wants a product that does not fit their risk profile. "I sell it anyway because the client asked" is the wrong answer.