Family offices feeling underserved by their private bank will soon have a new alternative.

Veteran banker Anthony Thomson—who has already launched three challenger banks in his career—announced plans this month to launch a new bank that will cater exclusively to family offices and UHNWIs.

Anyone within or working with family offices will have heard the same complaints about banks: from overly complex fees and inflexible structures to impersonal service, amongst other gripes.

It’s no surprise the announcement of Family Offices Bank (a working title until the brand is revealed) has caught industry attention, with Thomson noting the positive feedback included one family office head branding the idea ‘a no-brainer!’

Mr Family Office met with Thomson earlier this week and despite a successful fintech career behind him, his enthusiasm for the new project is palpable.

The man behind both Metro and Atom banks in the UK, and neobank 86 400 in Australia, wasn’t considering a fourth banking venture, but the idea sparked during a conversation with a friend who runs a family office organisation.

“We were chatting last September about the inherent conflict between banks and the family offices they serve,” says Thomson. “Family offices frequently take a long-term, often inter-generational view, whereas banks take, at best, an annual view and often much shorter.”

Thomson put the idea to the side, but it kept coming back.

“In February I decided to research the concept and see whether there really was an opportunity to build something that could better serve the market.”

Feedback from discussions with over 60 family offices, various advisory businesses and UHNWIs highlighted three consistent issues.

“The first point literally everyone makes is that all their bank wants to do is sell them investment products. Second, for many family offices in the $100 million to $1 billion category, they feel that the service they get, and speed of response, is not what they were promised. Third, if the service the family office gets does not meet their expectations then the services the family members get is even worse.”

So how will Family Offices Bank solve these challenges?

“The biggest challenge is, arguably, the dichotomy between the family office's need for long-term service and value and the short-term profit targets of the bank. Because, uniquely, our bank will be owned by the family offices and UNHWIs that are its clients, there is a complete alignment between the bank, its clients and its shareholders.”

Understanding the notoriously risk-averse nature of family offices, the bank will focus on expertly delivering a limited offering to start, then expand to meet needs thereafter.

“Our focus is exclusively on banking - we don't offer investment products or services. We think that this focus enables us to offer better savings and cash management, transaction accounts for both the family office and the individual members and better lending products such as retail and commercial mortgages, Lombard loans and margin loans.”

A tailored digital experience is critical for next-generation wealth owners, and Thomson emphasizes that technology will be core to their service offering.

“Our ability to use a modern, composable, artificial intelligence-led IT architecture enables us to offer better products, service and experience to our clients, either in-app, on screen or through their Relationship Managers.”

Asked about fee structures, Thomson says what matters most to clients is value - that price is but one element of the value equation, along with service, consistency, speed and adaptiveness.

“They understand that some services have costs attached to them - all they ask is that they are fair and transparent, which is our focus. Of course, as a bank we need to be profitable, but our profits are distributed to our shareholders, who are also our clients.”

While family offices can be clients without being shareholders, Thomson is hoping most clients become shareholders to both influence the direction of the bank and share directly in the long-term economic value it creates.

“Our intention is that the shareholding will be evergreen, that it is held by the family offices intergenerationally, although there will be a secondary market and the possibility of a limited IPO to create further liquidity.”

Thomson attributes his previous banking successes to a “relentless focus on the customer” and aims for the same here.

“We've put together a fantastic team and I think we are well positioned to change the way family offices and UNHWIs bank, for the better.”

And they’re taking a global approach from the start, with the first banking license being processed in Jersey, where they are currently building their team and infrastructure, to then be followed by Singapore.

In the meantime, they’re engaging with their potential clients and shareholders, uncovering the variety of family office needs.

“Some are interested in how we manage onboarding and KYC frictionlessly, others ask about acquiring assets in one jurisdiction secured by an asset in another jurisdiction. They all have unique interests but they share an interest in being part of a bank that they can help shape and share in the value that is created.”

Thomson firmly believes this value will come by aligning with the long-term view of family offices, and never forgetting their needs.

“I think the biggest problem with most banks is that they think they exist to make money. They have lost sight of the customer. I believe passionately that profit is a by-product of giving the customer a better product service or experience.”

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With trillions of dollars in family capital seeking a permanent home and growing frustration among wealthy clients with existing banking options, the launch of a dedicated family office bank is such an exciting development. We’ll be following closely.

For MrFO Investment Community members, we’ll also be sharing details on how to participate in Family Offices Bank and how to secure discounts.