In the case of the pledge, the goods are placed in custody of the bank with its name on the god own where they are stored. The borrower has no right to deal with them.
Customers favor hypothecation to pledge because the latter is considered to tower his prestige.
If someone pledges goods, they let a second person take possession of the goods, but the person pledging the goods still owns them. It is often done as security for money owed or to make sure that something is done as promised.