custodianship of bitcoin cash as a service other than exchanges?

one thing that came up when discussing cryptocurrency with some of my friends is that some of them did not like the risks associated with holding the private keys and recovery phrases themselves.

just like there are risks to losing your money if its cash under a mattress lost to a fire regular users also have to deal with potentially losing a lot of money if they send to the wrong address, lose access to their device, or something else happens.

are there any options out there for custodianship as a service? ideally with features such as some combination of

1. the owner has the ability to withdraw their funds without permission of the custodian(maybe some strategy that includes the owner holding the wallet recovery phrase?)

2. a streamlined process to have your savings with the custodian while easily being able to move spending money to your phone whenever you want

3. an option to prevent your funds from being used in fractional reserve banking and pay a fee for custodian services

this is just brainstorming though. i know its ironic looking for a good custodian service and on the other hand telling users "not your keys not your coins" when they get lost on an exchange, but hopefully there are services out there that can mitigate risks associated with holding the keys yourself without completely losing control of the money