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

Generational changes. Global mobility. Technological revolution. Farnoush Farsiar writes for EU Today that these are just a few key changes that will affect family offices and pose a serious threat to their structures of operation.

Family offices are geared towards the technologically advanced, mobile and younger generation. Due to the economic crisis, all clients are now more interested and involved in their investments.

These changes occur at a moment of unprecedented financial and political turmoil. If continue to follow their old methods, they will be abandoned by the people they were designed to serve. They should adapt to be more entrepreneurial and create a value proposition for UHNWIs.

Although the scope and size of family offices is diverse, it is crucial to focus on efficiency and speed rather than being experts in every aspect. Customers will enjoy better service when they have less advisors who can implement new technologies quickly and bring in external specialists as required. As these changes necessitate blurring the lines between private banking and family office the most successful companies will be those that maintain the loyalty and level of trust that a family office has whilst remaining in the forefront of sourcing deals and adopting technology.

The capability to utilize both traditional, reputation-based and network-based methods of deal sourcing will result in successful outcomes. But, you can also make use of online methods to find deals and opportunities. Online deal sourcing platforms are just one tool that wealth managers and flexible private offices can easily install as opposed to large heavy-handed banks that are burdened by bureaucratic bureaucracy of large firms. have access to and can evaluate huge numbers of deals at the same time and this can be a substantial savings in time and resources.

Wealthica and other services on the internet have also changed the way family offices interact with their clients. They automate the consolidation of the investments of a variety of sources and bring clients into daily contact with their investment. This is a far cry away from when wealth managers would only provide intermittent information on their clients’ investments.

Of course the tools are just that – the means by which wealth managers can enhance the speed and efficiency with which they operate. The strategy which underpins their investments is , in the end, the most important aspect. It is important to combine the old and the new. For instance you should continue searching for real estate opportunities and also look into investment opportunities in emerging areas such as climate science or food security. Impact investing is definitely ‘arrived’ within the family office industry. The UBS Global Family Office Report 2018 found that a third of family officers are actively involved in impact investing. A lot of people are planning to take part in the future. Although there are certainly issues with this particular field, for instance the difficulty of measuring impact and conducting due diligence, the next generation of HNWIs as well as UHNWIs will anticipate family offices to be able identify and secure these kinds of investments. Plato Capital is a boutique bank that provides advice on investing. It draws upon the expertise of its founders who have worked in large family offices, banks and in the technology industry to provide entrepreneurial investment guidance. and connections allow our clients to effectively manage risk and achieve optimal return on their capital.

Wealth managers of all types can succeed during turbulent times, by mixing old with the new by adjusting and risking their structure and strategies.