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

Generational change. Global mobility. Technological transformation. Farnoush Farsiar of EU Today writes these are just some of the significant changes that have affected family offices, and ultimately impacting their practices and operations.

Family offices are catering more and more to the young, mobile generation. The economic crisis and the democratisation of trading via internet-based tools has created a new generation of clients, regardless of age and interests, more interested in their investments which means they are looking to have more knowledge and involvement in their investments as well as losing the desire to have discretionary portfolios that are managed by distance.

These changes, which come during a time of unmatched political and economic instability will bring the demise of the fee-based family office model. Offices which try to maintain their old methods will soon be relegated to the very people they were created to help. They must adapt to a more entrepreneurial approach in the field of investment management, to provide UHNWIs the best value.

Family offices come in a variety of sizes and styles. But they need to prioritize efficiency and speed and improving the efficiency of their services. A smaller group of advisors who can quickly implement new technologies and bring on board external specialists when required will provide better service to clients. These changes will require the blurring of the line between private banking and family offices the most successful companies will be those who maintain the loyalty and level of trust of a family office while staying ahead of the curve with sourcing deals and adopting technology.

Your success will depend on your ability to access traditional, network-based, and reputation-based sources of deal sourcing. You can also make use of online tools and methods to discover opportunities or deals. Deal sourcing platforms online can be easily installed by wealth managers and agile private offices, as opposed to large banks which are burdened with bureaucracy. Farnoush Farsiar Farnoush Farsiar Farnoush Farsiar This platform allows dealmakers to easily access and evaluate many deals at the same time which could save them time and money.

Farnoush Farsiar Other online services which are changing the way family offices communicate with their clients includes dashboards, like Wealthica which instantly consolidates the investments of a variety of sources, bringing clients in daily contact with their investments - an improvement from the past when wealth managers gave periodic information on the status of their customers' funds.

These tools do exactly tools that allow wealth managers to boost their efficiency and speed. https://artmight.com/user/profile/1105982 Their investment strategy is what matters most. It is important to combine the traditional and new. For instance you should continue searching for real estate opportunities, while also looking into investment opportunities in emerging areas such as climate science or food security. Impact investing has certainly 'arrived" within the realm of family office - UBS Global Family Office Report 2018 found that one-third of family office were now engaged in impact investing. Most expect to be more involved in the near future. Farnoush Farsiar There are certain problems with this field, including difficulties in measuring impact or performing due diligence. But the next generation of UHNWIs and HNWIs will want their family office to be able find and secure these kinds investments. Plato Capital, my own boutique investment bank, draws on the experience of its founders, who are from large banks as well as the technology industry to offer investment guidance that is entrepreneurial in the focus. Our clients are able to achieve maximum returns and reduce the risk through our personal network.

Wealth managers can thrive during turbulent times through blending past and the future by adapting to the changing needs of the new generation and making a risk with their own structures.


Public Last Update: 2023-04-09 14:25:49