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

Generational changes. Global mobility. Technological revolution. Farnoush Farsiar Farnoush Farsiar Farnoush Farsiar from EU Today discusses the major changes that impact family offices and fundamentally threatening operating structures and practices.

Family offices cater to an increasing number of young, mobile and tech-savvy generations. Every client, no matter their age, are more inclined to invest through online trading. This has led to an increased interest in personal investments. Clients no longer want to be left out of the process of deciding on discretionary portfolio mandates.

These changes are coming at a time where there an unprecedented level of economic and political instability. These changes also signal the end to the model of family offices that are fee-based. If they continue to follow their old methods and practices, they’ll be relegated by the very people they were designed to help. Farnoush Farsiar They must adapt to a more entrepreneur-like approach in the field of investment management, to provide UHNWIs the best value.

Family offices are available in a variety of sizes and styles. However, they must prioritize efficiency and agility in addition to streamlining the service. Clients will appreciate a lower amount of advisors capable of quickly implementing new technologies and calling in specialists whenever needed. This will mean the blurring between family office and private banking. Successful firms will maintain the trust and respect of family offices, while staying on top of trends in the adoption of technology and purchasing deals.

The ability to employ both traditional, reputation-based and network-based methods for deal sourcing will result in the success. But, you may also use online methods to discover deals and opportunities. Wealth managers and private offices with agile staff can install online deal sources platforms. This is in contrast to cumbersome banks that are ensconced in bureaucracy. Dealmakers can utilize these platforms to quickly access and assess a variety of deals, which results in significant savings in time and money.

Other online services which are changing how family offices interact with their customers include dashboards, like Wealthica which instantly consolidates the investments of a variety of sources, bringing customers to daily interaction with their investments. It’s a far cry from the past when wealth managers provided only intermittent information on the status of their clients’ funds.

These tools do exactly thatthey enable wealth managers to increase their effectiveness and speed. The method they use to make investment strategy is the most crucial factor. The benefit will be combining traditional and new strategies. Keep searching for opportunities in the field of real estate and also consider investing in previously unexplored areas like climate change or food security. Impact investing has certainly ‘arrived” within the realm of family offices – UBS Global Family Office Report 2018 found that one-third of family office were now involved in impact investing. Many anticipate to become more involved in the near future. There are a myriad of issues with this area, including the challenge in assessing impact and conducting due diligence. But, the next generation UHNWIs, and HNWIs, are likely to expect family offices to determine and secure investments in this area. Plato Capital is my boutique investment bank. Plato Capital draws from the expertise of its founders who been employed in major banks as well as the tech industry. Plato Capital provides investment advice that focuses on the entrepreneurial. Our clients can make maximum returns and manage the risk through our personal network.

Farnoush Farsiar By blending the old and the new, while adjusting to the needs of the new generation, and preparing to be risk-averse with their own structures and techniques, wealth managers of all types can remain relevant and thrive during difficult times.