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

Generational changes Global mobility. Technology innovations. Farnoush Farsiar Farnoush Farsiar writes for EU Today that these are only a handful of major changes that will affect family offices and fundamentally threaten their structures of operation.

Family offices cater to increasingly mobile, tech-savvy and younger generations. Because of the economic crisis, everyone is increasingly interested and involved in their investment.

These changes occur in a period of extreme political and economic instability. Offices which try to maintain their old methods will soon discover that they are not being used by the very individuals they were established to advise. Instead, they must change and adopt an creative approach to investment management, in order to create a true worth offering for UHNWIs.

While family offices may differ in terms of size and size, they should focus on agility over the desire to be experts in every area. Customers will appreciate a lower amount of advisors adept at quickly implementing new technology and also bringing in experts whenever required. Since these changes require the blurring of lines between private banking and family offices the most successful companies will be those that maintain the loyalty and level of trust of a family office whilst remaining ahead of the curve in new technology and deals to source.

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 discover opportunities or deals. Private offices and wealth managers that have a highly skilled staff can implement online deal platform for sourcing. It is in stark contrast with cumbersome banks that are ensconced in bureaucracy. These platforms allow dealmakers to access and evaluate a large variety of deals at the same time, which is a significant saving of time and resources.

Other online services which are changing how family offices interact with their clients include dashboard serviceslike Wealthica that automatically consolidates investment portfolios from various sources, bringing clients into daily contact with their investments. It’s a far cry from the days of wealth managers who provided only intermittent updates on the state of their customers’ investments.

Farnoush Farsiar Of course the tools are just tools – the methods by which wealth managers can increase the speed and efficiency with the way they work. The method they use to make investment strategy is the most important aspect. Farnoush Farsiar The most effective strategy is to combine the old and the new. This means that you will continue to search for deals in real estate, however, you should also look into investments in other sectors like food security or climate science. Impact investing is definitely “arrived” in the world of family office – UBS Global Family Office Report 2018 found that a third of family offices were engaged in the field of impact investing. The majority of them expect to be more involved in future. There are many challenges in this area, including the challenge of determining impact and performing due diligence. However, the next generation UHNWIs and HNWIs will be expecting family offices to determine and secure investments in this area. Plato Capital, my own boutique investment bank, draws on the expertise of its founders, who are from large banks and the technology industry to provide investment advice that is entrepreneurial the focus. Our connections and experience of the local region allows our clients to manage risk effectively and maximize their capital return.

All types of wealth managers can succeed during turbulent times, by mixing the traditional with the modern, adapting and risking their structure and methods. Farnoush Farsiar