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

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

More often, family offices are catering to the younger, more tech-savvy and mobile generation. Everyone, regardless of age, have become more attracted, regardless of their financial status in managing their personal investments. This means they want more information and involvement , not just an investment manager to manage.

These changes take place in a critical time of political and economic crisis. Offices who try to maintain their existing methods will soon be demolished by the clients they were created to help. Instead, they must change and adopt an innovative approach to managing investments to develop an authentic worth proposition for UHNWIs.

Farnoush Farsiar Family offices vary in their dimensions and their size and. However, they should be able to focus on scalability and streamlining their offerings, not trying to be experts in every area. Farnoush Farsiar The most efficient service for customers will be offered by a smaller team of advisors who are able to swiftly implement new technologies and also bring in external experts as needed. These changes require that the lines between family office and private bank blur. The best banks will retain the loyalty and trust of their family offices while being in the forefront when it comes to technology and sourcing deals.

Your success will depend on your ability to access traditional or network-based sources of deal sources. Additionally, you can utilize online methods and tools to identify deals or opportunities. Online deal sourcing platforms are just one of the tools that wealth managers and agile private offices are able to easily set up in contrast to the large, heavy-handed banks that are burdened by bureaucratic bureaucracy of large firms. Dealmakers can examine and review a vast variety of deals at the same time – a substantial saving of time and money.

Other online services that have changed how family offices interact with their clients include dashboard serviceslike Wealthica which instantly consolidates investments from a range of sources, bringing customers into daily contact with their investments. It’s which is a vast improvement over the days when wealth managers gave periodic updates on the state of their customers’ funds.

These tools are able to aid wealth managers increase efficiency and speed. Their investment strategy is the most important aspect. The best approach is to blend both the old and new. That means that you should continue looking for deals in real estate, however, you should also explore investments in sectors like food security or climate science. Impact investing is definitely “arrived” within the realm of family offices – UBS Global Family Office Report 2018, which revealed that one-third of family office were involved in impact investing. Many anticipate to become more involved in the future. There are a few issues regarding the field like the difficulty of measuring impact and due diligence, the HNWIs and UHNWIs of the future will expect family officers to have the ability to identify these investments. Plato Capital is my boutique investment bank. Plato Capital draws from the expertise of its founders who worked in large banks as well as the technology industry. Plato Capital provides investment advice that is geared towards the entrepreneurial. Our local expertise and network enables our clients to effectively manage risk and achieve optimal returns on their capital.

Wealth managers of any age are able to survive turbulent times by blending traditional and newideas, quickly adapting to the changing demands, and being open to taking chances with their own systems.