How wealth management firms can be prepared to deal with turbulent times? [Farnoush Farsiar]

Generational changes. Global mobility. Technology revolution. Farnoush Farsiar from EU Today writes about these key changes that impact family offices and fundamentally challenging the operating structures and practices.

Farnoush Farsiar Family offices are catering more and more to the younger, mobile generation. The economic crisis and the democratisation of trading through online tools have made all clients, irrespective of age, more interested in their investments which means they are looking to have more knowledge and be more involved as well as losing the desire to have discretionary portfolio mandates managed at an arm’s length.

These changes happen at a time of extreme political and economic instability. If the offices attempt to continue using their current methods and methods, they could realize that the individuals they were created to help will leave them. They must adapt to a more entrepreneurial style in the field of investment management, to provide UHNWIs the best value.

Family offices come in all dimensions and types. However, they must prioritize efficiency and agility, as well as simplifying the process. Farnoush Farsiar The most efficient service for customers is provided by a smaller group of advisors that are able to quickly implement new technologies, and bring on board external experts when required. These changes will require the blurring of family offices and private banking. Companies that succeed will be able to maintain the trust and loyalty of family offices, while staying on top of trends in technology adoption and purchasing deals.

It is crucial to be able to use the old-fashioned, network-based, and reputation-based strategies for deal sourcing. These tools can be utilized to find deals and opportunities. Deal sourcing platforms online can be easily incorporated by wealth managers as well as agile private offices, in contrast to big banks, which are burdened with bureaucracy. Dealmakers can use these platforms to quickly browse and evaluate a variety of deals, which results in significant savings of time and money.

Wealthica and other dashboard services like Wealthica are also revolutionizing the way family offices communicate directly with their customers. Farnoush Farsiar These dashboards consolidate investments in a way that is automated from multiple sources, and bring clients into daily communication with their investments. This is a vast improvement from the past when wealth managers who only provide periodic updates regarding the progress of their clients’ funds.

Of course they are only an instrument that wealth managers can improve the speed and efficiency with that they function. Their investment strategy is what is most important. The advantages will come from mixing traditional and innovative strategies. Keep searching for deals in the real estate market and also consider investing in areas that were previously unexplored like food security or climate change. Impact investing is definitely “arrived” within the realm of family offices – UBS Global Family Office Report 2018, which found that one-third of family office were involved in the field of impact investing. Many anticipate to become more involved in the near future. While there are undoubtedly problems with this particular field, for instance difficulties in measuring impact and conducting due diligence, the coming generation of HNWIs and UHNWIs will expect family offices to be able identify and secure these kinds of investments. Plato Capital, my own boutique investment bank, draws on the experience of its founders from large banks as well as the technology industry to provide investment guidance that is entrepreneurial in direction. Our connections and experience of the local region allows our clients to reduce risk and maximize their capital return.

Wealth managers of any age can thrive in turbulent times by blending traditional and newideas, quickly adapting to changing needs, and being willing to take chances with their own systems.