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

Generational shifts Global mobility. Technology revolution. Farnoush Farsiar of EU Today writes that these are but a few of the major changes that affect family offices and fundamentally threatening their operations and practices.

Family offices serve a younger, tech-savvy, and mobile generation more frequently. The financial crisis as well as the democratisation and trading online have led to clients becoming more interested in their investments. They seek more control and information and do not are they looking for discretionary portfolios that are managed at arm’s reach.

These changes occur at a crucial time in political and economic turmoil. If they attempt to continue with their old methods in place, they’ll soon be rejected by the very people they were designed to help. Farnoush Farsiar They must be flexible and innovative in managing investments in order to offer UHNWIs with a true value proposition.

Farnoush Farsiar Family offices vary greatly in their dimensions and scope, but irrespective of this they should focus on agility and streamlining their service rather than trying to be experts in all things. Customers will get better service if they have fewer advisors that are able to implement new technologies quickly and bring in outside specialists when needed. These changes will require the blurring of family offices and private banking. Successful firms will maintain the trust and respect of family offices and stay ahead of the curve with the adoption of technology and sourcing deals. The success will come from the ability to capitalize on more traditional, traditional, network- and reputation-based approaches to deal sourcing, whilst also using online methods to find deals and opportunities. Deal sourcing platforms on the internet can be easily incorporated by wealth managers as well as agile private office, as opposed to banks that are burdened with bureaucracy. These platforms allow for dealmakers to evaluate multiple deals simultaneously and reduce time and effort.

Other services online that have changed the way family offices interact with their clients include dashboard services, such as Wealthica, which automatically consolidate investments from a range of sources, bringing customers to daily interaction with their investments. This is an improvement from the days when wealth managers gave periodic updates on the progress of their customers’ funds. These tools do exactly tools that allow wealth managers to increase their effectiveness and speed. The most important factor in investing is the method that is used to implement them. The advantage will be in combing traditional and innovative strategies. Continue to seek out deals in realty as well as investing in areas that were previously unexplored like climate change or food security. The UBS Global Family Office Report 2018 showed that impact investing has become the most talked about 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 coming years. Although there are many challenges in this field including the measurement of impact and conducting due diligence next generation HNWIs/UHNWIs will expect their family offices to be able to determine and secure these kinds of investments. Plato Capital, which I started in 2004, is an investment banking institution which focuses on entrepreneurs. Our clients can make maximum returns and manage risks through our own network.

Wealth managers of all kinds will continue to flourish in turbulent times if they mix the old and modern, are open to adapting to the changing needs of the market and are willing to take risks with their own structures.