Private Bank

A private bank differs from a retail bank primarily in the complexity and customization of its services. Rather than offering standardized products, a private bank typically assigns a dedicated relationship manager and provides access to credit facilities, custody of securities, investment advisory services, and estate or trust planning, all under one roof. The bundling is designed to serve clients whose financial lives are multidimensional: business interests, investment portfolios, real estate, philanthropic vehicles, and cross-border needs often all appear on the same balance sheet.

Families exploring how to build a family office frequently interact with private banks as providers of credit, custody, or both. Custody. The safekeeping and record-keeping of securities on a client's behalf. Is a particularly important service for families managing large investment programs. Some families consolidate custody at a private bank for simplicity; others spread custody across multiple institutions to reduce concentration risk.

A key concept to understand is the difference between a private bank acting as a custodian versus acting as an advisor. When a private bank holds assets in custody, it is performing an administrative function. When it recommends investments, it may be operating under a different legal standard and a different fee structure, and its recommendations may favor in-house products. Families commonly work with independent legal and financial counsel to understand exactly which role a private bank is playing in any given relationship, and qualified attorneys can clarify the fiduciary or suitability standards that apply in their jurisdiction.