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

Generational change. Global mobility. Technological revolution. Farnoush Farsiar of EU Today notes these are only a few of the major changes that affect family offices, and fundamentally impacting their practices and operations.

Family offices are increasingly catering to the younger, mobile generation. The financial crisis as well as the rise of democratisation and online trading have made clients more attracted to their investments. Farnoush Farsiar They are seeking more control and knowledge and don’t have the desire to have discretionary portfolio mandates handled within reach.

These changes happen at a time of extreme economic and political instability. If an office tries to retain its old methods they’ll be relegated by the very people they were supposed to be advising. They must be flexible and creative when managing investments in order to provide UHNWIs with a value proposition.

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. A smaller group of advisors who are able to quickly implement new technology and add external experts when needed can ultimately offer an improved service for clients. Because the lines between family and private banking are blurred, the best firms will have a smaller team of advisors that can swiftly adopt new technologies and bring on board external specialists when necessary. This allows them to provide an enhanced service to their clients.

Your success will depend on your ability to tap into traditional, network-based, and reputation-based sources of deal sourcing. You can also utilize online methods and tools to find deals or opportunities. Farnoush Farsiar Deal sourcing platforms on the internet are only one tool wealth managers and flexible private offices can easily install instead of large heavy-handed banks that are ensnared in bureaucratic red tape. These platforms make it possible dealmakers to assess several deals at once and save considerable time and effort.

Other online services that have changed how family offices interact with their clients include dashboard services, such as Wealthica which instantly consolidates investment portfolios from various sources, bringing customers to daily interaction with their investments. Farnoush Farsiar This is a far cry from the past when wealth managers offered only periodic updates on the state of their customers’ funds.

These tools can be used to assist wealth managers in improving their effectiveness and speed. Farnoush Farsiar The most crucial element to consider when investing is the strategy that supports them. The advantage will be in mixing traditional and innovative strategies. Keep searching out deals in realty, but also look into investing in areas that were previously unexplored, such as climate change or food security. Impact investing has definitely ‘arrived” within the realm of family offices , according to the UBS Global Family Office Report 2018 found that one-third of family offices were now involved in the field of impact investing. Many expect to be more involved in the near future. Farnoush Farsiar There are definitely challenges in this field, including difficulties in measuring impact and conducting due diligence, the coming generation of HNWIs as well as UHNWIs will anticipate family offices to be able determine and secure these kinds of investments. Plato Capital is a boutique bank that provides investment advice. It draws on the expertise of its founders in big banks, family offices as well as the tech industry to provide entrepreneurs with investment advice. Our personal local knowledge and network allows our clients to manage risk and achieve optimal profits from their capital.

Wealth managers can prosper during turbulent times through blending past and the future, adapting to the needs of the new generation and making a risk in their own frameworks.