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

Generational change. Global mobility. Technology innovation. These are only a handful of the key changes impacting family offices, which is fundamentally challenging their structure and methods, writes Farnoush Farsiar for EU Today.

Family offices cater to an increasing number of younger, mobile and tech-savvy generations. to the financial recession, clients are increasingly interested and involved in their investments.

These changes occur during a time of the economic and political turmoil. If family offices keep their current practices, they may realize that the people they were created to advise will abandon them. must adapt to a more entrepreneurial style in investment management in order to offer UHNWIs the best value.

Family offices differ greatly in their size and scope, however regardless of that, they must prioritise agility as well as improving their services, rather than striving to be specialists at everything. The best service for clients is provided by a small group of advisors who have the ability to rapidly implement new technology and engage external experts when required. As between private and family banking have been blurred The best banks will have a small team of advisors who can quickly adopt new technologies and bring on board external specialists when necessary. This allows them to provide a more valuable service to customers.

Your success will depend on your ability to access traditional or network-based sources of deal sourcing. You can also make use of online tools and methods to identify deals or opportunities. Wealth managers can utilize deal sourcing sites online to find deals and opportunities. They’re much simpler than large, cumbersome banks that are entangled in big-firm bureaucracy. Dealmakers can access and evaluate huge numbers of deals at the same time, which is a significant time and money saving.

Wealthica and other services on the internet have also changed the way family offices interact with clients. They automate the consolidation of the investments of a variety of sources, and put clients in daily contact with their investment. It’s a far cry away from when wealth managers would only offer periodic information on their clients’ progress.

Of course the tools are just tools – the methods by which wealth managers can increase their efficiency and speed at which they operate. The most crucial element in investing is the strategy that underpins them. It is important to combine the traditional and new. For instance you should continue searching for real estate opportunities as well as looking at investing in areas that aren’t as well-known, such as climate science or food security. Impact investing is definitely ‘at last within the world of family offices. according to the UBS Global Family Office Report 2018 found that one third of family offices are active in impact investing, and most expect to become more involved in the near-future. While there are some challenges in this area including measuring the impact of investments and conducting due diligence the future generation of HNWIs/UHNWIs will want their family offices to be able to find and secure these kinds of investments. Plato Capital is a boutique bank that offers investment advice. It is based on the expertise of its founders in large banks, family offices and the technology industry to provide entrepreneurial investment advice. Our local knowledge and connections allow us to help our clients successfully manage risk while maximizing their capital gains.

All types of wealth managers are able to continue to prosper in turbulent times when they blend the old and the modern and are open to changing demands and taking risks with their own structure.