Principal Financial Group announced this week the expansion of its Custody Solutions Bank Referral Program, aimed at helping regional and community banks access institutional trust and custody services without ceding ground to larger competitors.
Regional and community banks often face operational and complexity challenges when seeking a custody services partner, leading many to turn to large national providers. But those partnerships can sometimes overlap with a bank’s existing commercial relationships. Principal Custody Solutions, which does not offer commercial lending or treasury management services, is positioning itself as a partner that complements rather than competes with client relationships banks have already built.
“Banks are looking for partners who help them deliver more to their clients while reinforcing the relationships they’ve built,” said Mike Gaul, CEO of Principal Trust Company and head of Principal Custody Solutions, in a statement. “We support that effort by providing specialized capabilities that help banks expand their offerings while remaining at the center of the client relationship.”
The referral program offers flexible engagement options, including referral partnerships and full acquisition support for banks looking to transition their custody operations. Participating institutions can gain access to institutional-grade custody and trust services, revenue growth through referrals, protection of client relationships, and reduced need for capital investment and operational buildout, according to a news release.
Northrim Bank, based in Alaska, is among the institutions using the program.
“Working with Principal allows Northrim Bank to deliver a more comprehensive, integrated solution to our Alaska clients,” said Doug Ladenburger, senior vice president of Treasury Management Services at Northrim Bank. “By combining our local relationship-based banking model with custodial capabilities through Principal, we’re able to offer secure asset safekeeping, transparent reporting, and a seamless client experience.”
Principal Custody Solutions currently serves more than 2,100 clients across over 11,500 accounts and safeguards more than $1.2 trillion in assets, according to the company.
“At a time when many banks are being asked to do more with less, this program provides a clear path for banks aiming to grow, retain, and compete more effectively,” Gaul said. “It’s about helping banks stay at the center of their client relationships and remain the trusted financial partner as customer expectations continue to evolve.”
More information is available at principal.com/custodysolutions.
Custody and trust services under the program are provided by Principal Bank, a member of the FDIC, and Principal Trust Company, a trade name of Delaware Charter Guarantee & Trust Company, operating together under the trade name Principal Custody Solutions.
Principal Financial Group has about 19,000 employees and has been in business for 146 years, serving 82 million customers with planning, insurance, investment and retirement services, according to the company. Principal was named to the 2026 World’s Most Ethical Companies list and recognized as a “Best Places to Work in Money Management.”
