Managing significant wealth is a great position to be in—but it also comes with some big decisions. One of the most important is choosing how to manage that wealth.
For high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), two of the most common options are private banking and family offices.
But how do you know which one is right for you? Especially if you’re an expat navigating multiple countries, regulations, and currencies, choosing the right approach can make all the difference.
Let’s break it down in plain English.
What is Private Banking?
Private banking is a personalised financial service offered by banks to wealthy individuals. Think of it as a “VIP” service where your bank helps manage your investments, savings, and even estate planning.
Most private banks offer:
- Investment management
- Tax and estate planning
- Lending services (like mortgages or business loans)
- Day-to-day banking support with a dedicated relationship manager
Pros of private banking:
- Easy access to a wide range of financial services
- Global expertise, especially helpful for expats
- Lower cost compared to running your own office
Cons:
- Less tailored to your personal or family situation
- Banks may promote their own products, which might not always be the best fit
- Limited focus beyond financial matters
What is a Family Office?
A family office is a private company that manages the financial—and sometimes personal—affairs of one (or several) wealthy families. There are two main types:
- Single-family office (SFO): Serves one family
- Multi-family office (MFO): Serves multiple families, often pooling resources
These offices don’t just help with money—they often handle philanthropy, succession planning, tax strategy, property management, and even concierge services like travel or private tutoring.
Pros of a family office:
- Fully customised wealth strategy
- Greater control over investments and decisions
- Support across generations (succession and governance)
- Higher level of confidentiality and independence
Cons:
- Expensive to set up and maintain (often millions annually)
- Requires skilled staff or external advisors
- Not always necessary unless wealth is particularly complex
Key Differences: Private Banking vs. Family Office
| Aspect | Private Banking | Family Office |
|---|---|---|
| Customisation | Moderate – based on bank’s services | High – fully tailored to the family’s needs |
| Control | Bank oversees portfolio and decisions | Full control remains with the family |
| Cost | Lower – fees or minimum balances apply | High – requires setup and dedicated staff |
| Services Offered | Mainly financial (investments, banking) | Comprehensive (financial + personal + lifestyle) |
| Best For | HNWIs with straightforward needs | UHNWIs with complex, multigenerational goals |
| Independence | Dependent on bank’s offerings and products | Independent and product-agnostic |
| Scalability | Limited – may outgrow bank’s capabilities | Highly scalable with growing family needs |
Special Considerations for Expats
If you’re an expat, your financial life may be spread across several countries, currencies, and tax regimes. That adds layers of complexity—and makes wealth management even more critical.
Private banking might suit you if:
- You want global reach with minimal hassle
- You need help managing cross-border investments or currency risks
- You prefer to keep things simple
A family office might be better if:
- You’re managing assets in multiple countries for multiple family members
- You need help with estate planning that spans jurisdictions
- You want a dedicated team to manage personal, legal, and financial matters
So… Which One Is Right for You?
Ultimately, it depends on your situation, your goals, and your lifestyle.
Choose private banking if:
- Your financial life is relatively straightforward
- You want expert help without building a team
- You’re looking for a cost-effective solution with global capabilities
Choose a family office if:
- You have a high level of wealth with complex needs
- You’re planning across generations
- You want to be deeply involved in your wealth strategy—or leave it to a trusted team
There’s also a middle ground: many families start with private banking and transition to a family office as their needs grow.
Final Thoughts
Wealth management isn’t one-size-fits-all.
Whether you’re looking for simplicity and convenience, or tailored, in-depth support, the good news is—you have options. For expats in particular, getting the right advice and structure in place can make global living smoother, more secure, and more rewarding.
Still unsure? Talk to a trusted adviser who understands both worlds. They can help you decide which route suits not only your portfolio, but your long-term vision.
Need help navigating your wealth journey as an expat?
We work with clients across the globe to build wealth strategies that suit their lives—wherever they are. Get in touch today to start a conversation.
