Principal Expands Custody Program for Regional Banks — Principal Financial Group, Inc.

Event summary

Principal Financial Group expanded its Principal® Custody Solutions Bank Referral Program to help regional and community banks offer custody services without operational overlap.
The program provides flexible engagement options, including referral partnerships and full acquisition support for transitioning custody operations.
Principal Custody Solutions currently serves over 2,100 clients across more than 11,500 accounts, safeguarding over $1.2 trillion in assets as of December 31, 2025.

The big picture

Principal is positioning itself as a specialized partner for regional banks seeking to expand custody services without competing with their core banking relationships. This move aligns with broader industry trends where smaller institutions increasingly rely on outsourced solutions to manage complex financial services. With over $1.2 trillion in assets under custody, Principal’s scale could make it a formidable player in this niche market.

What we're watching

Partnership Dynamics: How Principal’s non-competitive custody model will affect regional banks’ ability to retain client relationships.
Market Penetration: The pace at which smaller banks adopt Principal’s custody solutions as an alternative to larger national providers.
Regulatory Compliance: Whether evolving financial regulations will impact the operational flexibility of custody referral programs.