How can wealth management firms be prepared for turbulent times? [Farnoush Farsiar]

Generational change. Global mobility. Farnoush Farsiar Technology transformation. Farnoush Farsiar of EU Today writes that these are but a few of the significant changes that have affected family offices and fundamentally challenging their business practices and operations.

Family offices cater to the technologically advanced, mobile and younger generation. The financial crisis and the rise of democratisation and online trading have led to clients becoming more attracted to their investments. Farnoush Farsiar They want more control and information and don’t have the desire to have the discretionary portfolio management mandates of their clients at arm’s reach.

The changes take place during a time of severe economic and political turmoil. If family offices maintain their current strategies however, they might realize that the people they were created to advise will abandon them. They will need to adjust to a more entrepreneurial approach in investment management to offer UHNWIs a true value proposition.

Family offices are diverse in size and size and. They should be able to concentrate on scalability and streamlining their offerings rather than trying to be experts in each area. Clients can benefit from a smaller number of advisors who are adept at quickly implementing new technologies and bringing in specialists when needed. These changes will require blurring the lines between family offices and private banking The most successful companies will be those that maintain the loyalty and level of trust of a family office while staying in the forefront of the sourcing of deals and embracing technology.

Your success is contingent upon your ability to tap into traditional, network-based, and reputation-based sources of deal sourcing. It is also possible to utilize online methods and tools to identify deals or opportunities. Farnoush Farsiar Deal sourcing platforms online are easily installed by wealth managers as well as agile private offices, in contrast to large banks which have bureaucratic burdens. Dealmakers can utilize these platforms to swiftly browse and evaluate a variety of deals, resulting in substantial savings of time and funds.

Other online services which are changing the way family offices communicate with their clients includes dashboard serviceslike Wealthica, which automatically consolidate investments from a range of sources, bringing clients to daily interaction with their investments. This is which is a vast improvement over the days of wealth managers who offered only periodic updates on the progress of their customers’ funds.

They aren’t the only way wealth managers can improve efficiency and speed up their processes. Most important is their investment strategy. The benefit will be mixing traditional and innovative strategies. Continue to seek for opportunities in the field of real estate as well as investing in previously unexplored areas for example, the effects of climate change and food security. Impact investing has definitely arrived within the family office world – according to the UBS Global Family Office Report 2018 showed that one-third of family offices are now engaged in impact investing and the majority expect to be more involved in the coming years. While there are some challenges with the field such as difficulties in quantifying impact as well as due diligence HNWIs/UHNWIs of the future will expect family members to have the ability to identify the right investment opportunities. Plato Capital is my boutique investment bank. Plato Capital draws from the experience of its founders, who have worked in large banks as well as the technology sector. Plato Capital provides investment advice that focuses on the entrepreneurial. Our clients can successfully deal with risk and earn the most value for their investment due to our network of local experts.

Wealth managers of every type will continue to flourish during turbulent times when they blend both the traditional and the contemporary, are open to adapting to new demands and take risks with their own structures.