How can wealth management companies prepare for turbulent times [Farnoush Farsiar]

Generational changes. Global mobility. Technology revolution. These are just a few of the key changes impacting family offices and fundamentally threatening their operational structures and practices, writes Farnoush Farsiar for EU Today.

Family offices cater to the increasingly mobile, tech-savvy and younger generations. Everyone, regardless of their age, are more attracted to investing via online trading. This has resulted in increasing desire to invest in personal assets. The clients do not wish to be left out of the decision-making process for discretionary portfolio requirements.

Farnoush Farsiar These changes, which come at a time of unparalleled economic and political instability are a sign of the demise of the traditional fee-based family office model. If they attempt to continue with their old practices and practices, they’ll be relegated by the people they were designed to serve. They must adapt to a more entrepreneurial style in investment management to offer UHNWIs a true value proposition.

Family offices vary in terms of their size and size and. However, they should be able to concentrate on scalability and streamlining their services rather than trying to become experts in every field. A smaller team of advisors who are able to quickly adopt new technologies and bring on board external specialists when required will ultimately provide an improved service for customers. Since these changes require the blurring of lines between private banking and family offices, successful firms will be those that can maintain the trust and loyalty of their clients. trust that a family office has whilst remaining in the forefront of the sourcing of deals and embracing technology.

Your success is contingent upon your ability to access traditional or network-based sources of deal sourcing. You can also utilize online methods and tools to find deals or opportunities. Private offices and wealth managers that manage large quantities of deals online are superior to banks with a cumbersome structure. They allow dealmakers to review and access a huge number of deals at one time, which is a significant saving of time and money.

Another service online that is altering the way family offices communicate with their clients is Wealthica. The Wealthica dashboard service automatically consolidates investment from multiple sources and puts clients in daily contact. It’s a far cry of the days where wealth managers provided periodic updates on the progress of the clients’ investments.

Of course the tools are just that – the means to help wealth managers enhance their efficiency and speed at that they function. Farnoush Farsiar The method they use to make investment strategy is the most important aspect. Farnoush Farsiar The benefit will be mixing traditional and innovative strategies. Farnoush Farsiar Continue to seek for opportunities in the field of real estate as well as investing in previously unexplored areas, such as the effects of climate change and food security. The UBS Global Family Office Report 2018 found that impact investing is becoming the most talked about topic in family offices. About a third of family offices are involved with the type of investing that they are involved in and many expect to get involved more in the near future. Although there are certainly issues in this field, including difficulties in measuring impact and conducting due diligence, the next generation of HNWIs and UHNWIs are expected to expect family offices to be able identify and secure these kinds of investments. Plato Capital is my boutique investment bank. Plato Capital draws from the experiences of its founders who worked in large banks as well as the tech industry. Plato Capital provides investment advice that is geared towards the entrepreneurial. Our clients can achieve maximum returns and reduce the risk through our personal network. Wealth managers of all kinds can succeed during turbulent times, by mixing traditional with the modern by adjusting and making a risk with their structures and techniques. Farnoush Farsiar