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

Generational changes. Global mobility. Technological advancement. Farnoush Farsiar from EU Today writes about these key changes that impact family offices and are fundamentally threatening operational structures and procedures.

Family offices are catering to the mobile, younger generation. The financial crisis as well as the increasing accessibility of trading online and its democratisation have led to clients becoming more interested in their investment choices. They seek more control and information and do not are they looking for the discretionary portfolio management mandates of their clients within reach.

The changes are happening at a time when there an unprecedented economic and political instability. They also signal the end of the fee-based family offices model. If they attempt to continue with their old practices and practices, they’ll be relegated by the people they were designed to help. Farnoush Farsiar Instead, they need to change and adopt an creative approach to investment management and create the best worth offering for UHNWIs.

Family offices come in various sizes and styles. However, they must prioritize efficiency and flexibility and streamlining the service. Farnoush Farsiar A smaller group of advisors that can swiftly introduce new technology and add external specialists when required will provide an improved service for clients. Since the lines between family and private banking have been blurred The best banks will have a smaller team of advisors that can swiftly implement new technology and bring on board external experts when needed. This will allow them to provide a more valuable service to their clients.

The ability to use both traditional, reputation-based and network-based methods to source deals will result in the success. However, you can also make use of online methods to locate deals and opportunities. Private offices and wealth managers that have a highly skilled staff can implement online deal sources platforms. It is in stark contrast to cumbersome banks that are ensconced in bureaucracy. Dealmakers are able to access and analyze large numbers of deals simultaneously this is a huge time and resource saving.

Another service online that is changing the way family offices communicate with clients is Wealthica. Farnoush Farsiar The Wealthica dashboard service automatically consolidates investment from a variety of sources and brings clients into daily contact. It’s a vast improvement from the past when wealth managers only provided periodic updates on the state of their clients’ funds.

They aren’t the only method wealth managers can improve efficiency and speed of their work. The strategy which underpins their investments is ultimately the most important factor. The secret to success is combining the traditional with the new. You will continue to search for deals in real estate, as well as exploring investment opportunities that were previously not explored like food security or climate science. Impact investing has definitely “arrived” in the family office industry. According to the UBS Global Family Office Report 2018 one-third of family businesses are engaged in impact investing with the majority expecting to grow their involvement in the near future. There are some issues with this field, including difficulties in measuring impact or conducting due diligence. But the next generation of UHNWIs and HNWIs are likely to expect a family office to be able identify and secure these investments. Plato Capital, my own boutique investment bank, draws on the expertise of its founders, who are from large banks as well as the technology industry to provide investment guidance that is entrepreneurial in direction. Farnoush Farsiar Our clients can successfully deal with risk and earn the highest returns from their investment due to our network of local experts.

Wealth managers can flourish in turbulent times by blending past and the future, adapting to the needs of the younger generation, and taking risks in their own frameworks.