In previous blog posts we have touched on strategies for family offices and what we’ve seen in the past along with what we anticipate in the future, and it’s interesting how new family offices have a common question: What bank should we go with?
Taking a step back and where our experience comes from that’s focused on investment strategies and looking at data to make informed decisions, there’s no simple answer to choosing a bank for your family office and it depends on a variety of factors which we’ll touch on below.
First off, there’s an element of proximity and being close to your bank and the key people you trust there. You may call Los Angeles, Miami, New York or somewhere else home and in doing that discover the best bank/team where you feel comfortable putting your money. But what if you’re on the road – what level of service will you get?
Secondly, when your generational wealth is at stake you need to take banking seriously and studies over the years show that there are a few banks that continue to lead the pack: J.P. Morgan Private Bank, Bank of America Private Bank, Northern Trust and UBS Global Wealth Management.
Based on our research/experience, it’s interesting how J.P. Morgan Private Bank is a recurring theme with many family offices gravitating towards them which we’re seeing regularly.
Lastly, where do you see yourself and your family continuing to build lasting relationships where everyone wins? Similar to being a regular at a restaurant that tips well and you’re always the nicest person and therefore get the best customer service, the same is applicable when it comes to what family offices should expect from financial institutions.
The moral of the story: Follow your intuitions and go with the most capable, reputable banks with strong balance sheets to ensure safety and success in the future.