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.