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

Generational change. Global mobility. Farnoush Farsiar Technological transformation. Farnoush Farsiar Farnoush Farsiar, EU Today writes that these are only one of the many major changes that have impacted family offices, and in the end threatened their structures and practices.

Family offices cater to the increasingly mobile, tech-savvy and younger generation. The financial crisis as well as the democratisation and trading online has led to more clients becoming interested in their investment choices. Farnoush Farsiar They seek greater control and understanding and don’t want discretionary portfolio mandates handled in a jiffy.

These changes come at a time of unprecedented political and financial turmoil. Offices which try to maintain their old methods will soon find they are abandoned by those they were established to advise. They need to change to be more entrepreneurial and provide the value proposition for UHNWIs. Although the scope and size of family offices can be different, it’s important to focus on agility and streamlining rather than being experts in everything. Customers will get better service if they are able to employ fewer advisors who can quickly implement new technologies and also bring in specialists from outside whenever required. Because the lines between family and private banking have been blurred, the best firms will have a smaller team of advisors that can swiftly implement new technology and bring on board external experts when needed. This allows the firm to offer a more valuable service to clients.

Your success will be contingent on your ability to tap into traditional networks, reputation-based, and network-based sources of deal sourcing. Additionally, you can utilize online methods and tools to find deals or opportunities. Private offices and wealth managers that can manage large numbers of deals on the internet are superior to banks with a cumbersome structure. Dealmakers can access and evaluate a large variety of deals at the same time – a substantial saving of time and effort.

Wealthica and other dashboards like Wealthica are also changing the way family offices communicate directly with their clients. These dashboards consolidate investments automatically from multiple sources and put clients in daily communication with their investment portfolios. This is a vast improvement over the previous system of wealth managers who only provide periodic updates regarding the progress of their clients’ money.

The tools can be utilized to aid wealth managers increase efficiency and speed. Most important is their investment strategy. The secret to success is combining the traditional with the new. It is likely that you will continue to seek out deals in real estate, and will also be looking at investment opportunities that were previously not explored such as food security and climate science. The UBS Global Family Office Report 2018 revealed that impact investing is now a mainstream topic in family offices. A third of family offices participate in this type of investing and many are planning to be more involved in the near future. There are certain problems with this particular field, for instance, challenges in measuring impact and performing due diligence. However, the next generation UHNWIs and HNWIs are likely to expect a family office to be able find and secure these kinds investments. Plato Capital, my own boutique investment bank, is based on the experiences of its founders, who are from large banks as well as the technology industry to offer investment advice that is entrepreneurial focus. Our clients are able to manage risk and get the best returns on their investment due to our network of local experts.

By blending the old and the new, while adjusting to the needs of the new generation, and preparing to take risks with their own methods and structures Wealth managers of all kinds can be successful and relevant during difficult times.