How Family Offices Are Transforming Private Banking in the Americas

As wealth in the Americas expands and diversifies, family offices have emerged as the new powerhouses of private banking. By blending institutional discipline with personal vision, these entities are reshaping how high-net-worth families manage, protect, and grow their assets across generations.

The Shift from Traditional Banking to Family Offices

In the past, wealthy families in the Americas relied almost entirely on private banks for investment management and trust services. However, over the last decade, a profound transformation has taken place. The rise of single-family offices (SFOs) and multi-family offices (MFOs) has disrupted the conventional model — empowering families to bring investment oversight, tax strategy, and governance in-house.

According to UBS and Campden Wealth’s 2024 Global Family Office Report, over 2,400 family offices now operate in the Americas, collectively managing more than USD 1.6 trillion in assets. The U.S. and Brazil account for the majority, followed by Mexico, Chile, and Panama as emerging hubs.

Why Families Are Creating Their Own Offices

The motivations behind this trend are clear:

1. Control and Customization – Wealth owners seek to align portfolios with family values and long-term goals rather than bank-driven mandates.
2. Cost Efficiency – Large portfolios often pay less in management fees when services are consolidated under one roof.
3. Privacy and Discretion – Family offices operate with confidentiality while meeting regulatory standards.
4. Cross-Border Coordination – Many families have assets, citizenships, or business interests spanning the U.S., Caribbean, and Latin America — requiring seamless international structures.

For these reasons, family offices are increasingly becoming the anchor clients of private banks, dictating the terms of service rather than passively receiving them.

Integration with Private Banking Institutions

Rather than replacing private banks, family offices often collaborate closely with them. Private banks provide custody, trading infrastructure, and access to exclusive investment opportunities — while the family office manages strategic asset allocation, philanthropy, and succession.

Top-tier banks such as J.P. Morgan Private Bank, Citi Private Bank, and BNP Paribas Wealth Management have established dedicated Family Office Advisory divisions to bridge this relationship. These teams offer governance workshops, consolidated reporting tools, and bespoke deal-sourcing services for ultra-wealthy clients.

In Latin America, banks like BTG Pactual and Itaú Private Bank have introduced “Institutional Family Office Platforms,” which combine capital markets access with estate planning and next-generation education.

Investment Behavior of the New Generation

A new generation of wealth holders — often educated in the U.S. or Europe — is redefining priorities. They emphasize:

• Sustainability and Impact Investing – Capital directed toward climate technology, healthcare innovation, and education.
• Direct Investments – Rather than relying on mutual funds, families co-invest in startups or private equity ventures.
• Diversified Holdings – Portfolios are increasingly multi-asset: combining equities, real estate, art, and digital assets.
• Philanthropy as Strategy – Many family offices integrate social impact into governance frameworks, aligning capital with purpose.

These shifts reflect a move away from passive wealth preservation toward active, responsible capital deployment.

Regulatory Evolution in the Americas

Regulators in the U.S., Brazil, and Panama have gradually defined clearer frameworks for family offices.

• The U.S. SEC exempts single-family offices from standard investment adviser registration, provided they serve only family members.
• Brazil’s CVM Resolution 175 recognizes family offices as professional investors, enabling broader portfolio options.
• Panama and the Caribbean jurisdictions offer flexible legal structures, such as Private Interest Foundations and trust companies, favored by Latin American families for estate continuity.

This legal clarity is fostering confidence among wealthy families to institutionalize their wealth management functions — a shift that ultimately benefits the broader financial ecosystem.

The Future: Collaboration, Not Competition

Private banks are learning to coexist with family offices by adopting a partnership model. Instead of competing for discretionary mandates, banks now position themselves as strategic service providers — offering credit lines, alternative investment access, and next-generation financial education.

Meanwhile, technology platforms are emerging to streamline this collaboration. Fintech firms like Addepar, Mirador, and Altoo provide real-time portfolio analytics, enabling family offices to maintain control while integrating seamlessly with bank custodians.

Conclusion

Family offices are reshaping the private banking landscape of the Americas. They represent the evolution of wealth management — from a transactional service to a holistic enterprise rooted in family vision, governance, and long-term impact.

For banks, the message is clear: the most successful institutions will be those that empower, rather than replace, family offices. For wealthy families, the era of passive capital is over — the future belongs to strategic, transparent, and purpose-driven private wealth management.

family office, private banking, wealth management, Americas, high net worth, investment strategy, legacy planning

About the Author

Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen. Read more articles