Notes

How wealth management businesses can prepare for turbulent times [Farnoush Farsiar]
Generational changes. Farnoush Farsiar Global mobility. Farnoush Farsiar Technological transformation. Farnoush Farsiar from EU Today discusses the major changes that impact family offices and are fundamentally challenging the operational structures and procedures.

Family offices are catering more and more to the younger, mobile generation. All clients, regardless their age, have become interested, regardless of their financial status and in managing their own investment portfolios. Farnoush Farsiar That means they are looking for more information and involvement , not just an investment manager to manage.

The changes are happening at a time when there an unprecedented level of economic and political turmoil. These changes also mark the end of the fee-based family offices model. Offices that attempt to keep their current practices will soon be relegated by the people they were established to advise. Farnoush Farsiar Farnoush Farsiar Instead, they should change and adopt an entrepreneurial approach to investment management, in order to create a true worth offering for UHNWIs.

Family offices are diverse in size and the scope. But, they must be able to focus on efficiency and streamlining their services rather than trying to be experts in every field. Customers will get better service when they have less advisors who can implement new technologies quickly and also bring in specialists from outside as required. Farnoush Farsiar Since these changes require blurring the lines between private banking and family offices The most successful companies will be those that can maintain the loyalty and level of confidence of a family-owned business whilst remaining ahead of the curve with new technology and deals to source.

You will succeed if you are able to leverage traditional, network- and reputation-based strategies for dealsourcing. You can also do this by using online methods for identifying opportunities and deals. Deal sourcing platforms on the internet are just one tool that wealth managers and agile private offices can easily install in contrast to the large, bankers who are burdened by bureaucratic bureaucracy of large firms. Dealmakers can access and evaluate large numbers of deals simultaneously and this can be a substantial savings in time and resources.

Wealthica is another online service which has changed the way a family offices communicate with clients. Wealthica's dashboard services automatically consolidate investments from various sources. Clients are able to keep in touch with their investments. This is much more efficient than when wealth management only provided periodic updates about the status and location of the client's money.

These tools aren't just tools they're the tools wealth managers have to improve their efficiency and speed. The most important factor is the investment strategy they employ. The secret to success is mixing traditional methods with new ones. The company will continue to seek out deals on real estate as well as exploring opportunities to invest that aren't explored before, like food security and climate science. The UBS Global Family Office Report 2018 showed that impact investing is now an increasingly popular topic within family offices. About a third of family offices are involved with this kind of investment and many expect to get more involved in the future. There are certain problems with this particular field, for instance, issues with measuring impact or conducting due diligence. However, the next generation UHNWIs and HNWIs will want their family offices to be able to find and secure these kinds investments. My firm, Plato Capital, is a small investment bank that is based on the expertise of its founders, in family offices, banks, and in the tech industry, to provide investment advice with an emphasis on the entrepreneurial. Our local knowledge and network allows us to assist our clients effectively manage risk while maximizing the capital return.

Wealth managers of all kinds can succeed during turbulent times, by mixing traditional with the modern by adjusting and risking their structure and methods.
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