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Banking on Trust: the role of the private bankers in family offices

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Mr FamilyOffice
January 19, 2024

Banking on Trust: the role of the private bankers in family offices

My first encounters with private banks made a lasting impact

🏦 The offices: oases of luxury in prime real estate, oak-paneled, not a computer in sight

💼 The relationship managers: often stunningly beautiful, always impeccably dressed and razor sharp. It’s easy to fall in love with private bankers!

But private banks don’t come cheap, so what do they offer that keeps family offices coming back?

➡️ Trust & honesty

➡️ Exclusive access to deals and advice

➡️ Tailored solutions

Part of the Family 👨‍👩‍👧‍👦

The private banker's role extends beyond traditional financial functions, they often become a trusted family advisor

In fact, it’s fairly common for long-term private bankers to jump ship and join the family office they advise

Understanding family dynamics is vital for private bankers

The best private bankers understand not only the financial aspirations of the family but also the relationships, the personalities, the conflicts, the sensitivities

As a result, private bankers ofte end up part-financial advisor, part-counsellor

Cultivating the "Sleep-Well Factor" 🌙

The Swiss private bank Pictet has identified the importance of the "sleep-well factor" for family offices - this refers to the peace of mind and confidence that families seek in their financial advisory relationships

It goes beyond the traditional focus on financial products and investments. When families entrust a private banker with their financial affairs, they are essentially inviting them into their lives

Understanding family values can be as important as financial products

Empathy, the Human Touch ❤️

It’s not a stretch to say that private bankers often become part of the extended family circle circle

The right relationship, grounded in trust, sets the stage for offering genuinely valuable advice 🤝

Talented all-rounders 🌍

A lot is demanded from private bankers

Family offices expect their bankers to have a grip on a range of disciplines including finance, legal, tax, accounting, as well as softer skills in psychology and empathy

And for in-depth discussions, private bankers should have experts at hand

As with many professions, the ability to communicate distinguishes the best private bankers 🗣️

Integrity: balancing money and trust ⚖️

Investment outcomes matter, but trust and integrity are paramount

I have seen family offices sever ties with private bankers and banks the moment trust or integrity is called into question. It can be a brutal end of the relationship

Family offices, can sometimes lack robust processes or internal controls, but instead place a significant reliance on trust. If that trust is broken, the famliy will move on

At the core of integrity lies honesty

That means there is no room for bluffing

In a world where trust can be lost in an instant, clear offerings and an unwavering commitment to the client is the only way for successful private bankers


Accessing the best deals 📈

Clearly private bankers must secure the best deals for their clients

As famliy offices are designated sophisticated investors, private bankers can help provide exclusive access to deals and opportunities. Gaining privileged entry to deals that are unavailable to the wider market is a major draw for private bankers and sets them apart from many wealth advisors

For family offices, the decision to entrust their financial affairs to a private banker hinges not just on financial acumen but on the promise of tailored solutions that align with their aspirations. This access can become a marker of the private banker's capabilities

By curating opportunities that go beyond standard offerings and providing a bespoke financial solution, private bankers can add real value to their clients

Family offices often work with a number of private bankers. This provides families with contrasting advice, some healthy competition and options to shift assets to the best performers

Learning from Families 🎓

The best private bankers are perpetual learners, absorbing the cultures, philosophies, values, and idiosyncrasies of the families they advise

Empathy, integrity, and understanding are key to private bankers forming a lasting connection with the families they serve

𝕏 highlights

Unlikely to be found at a Travelodge

Forecasts for 2024

📚 what to read

Bitcoin is hitting the headlines again. Bitcoin Billionaires by Ben Mezrich is the story of Tyler and Cameron Winklevoss’s punt on crypto

📻 what to listen to

I never get bored of behavioral economics. Freakonomics Radio presented by Stephen J. Dubner co-author of the best selling book Freakonomics “uncovers the hidden side of everything”

📰 family offices news roundup

And finally…

It’s been one of those weeks with a lot of blue-sky thinking… intensive discussions with advisors and partners on ideas that will probably never materialize. But experience tells me that good things will somehow emergy

I just need to figure out what they are

On that note, back to it

See you on 𝕏

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