Notes

How can wealth management firms be prepared for turbulent times? [Farnoush Farsiar]
Generational change. Global mobility. Technology revolution. Farnoush Farsiar , EU Today writes that these are only some of the major developments that have affected family offices and fundamentally threatened their operating structures and methods.

Family offices cater to a growing number of younger, mobile and tech-savvy generations. Due to the financial recession, clients are becoming more involved and interested in their investments.

These changes come in a period of an unprecedented economic and political instability. They also signal the end to the family office model that is fee-based. If family offices maintain their current strategies, they may realize that the individuals they were created to advise will abandon them. They need to change and become more entrepreneurial with their approach to investment management and provide a genuine value proposition to UHNWIs.

Although the size and scope of family offices are diverse, it is crucial that they prioritize flexibility and streamlining over being experts in all things. A smaller group of advisors who can quickly implement the latest technology and add external specialists when required can ultimately offer an improved service for customers. These new technologies make it necessary for the lines between private and family offices bank become blurred. The best firms will keep the trust and loyalty of their family office , while being in the forefront in technology and finding deals.

The ability to employ both traditional, reputation-based and network-based methods of deal sourcing can lead to successful outcomes. But, you can also use online methods to discover opportunities and deals. Deal sourcing platforms on the internet are just one of the tools wealth managers and flexible private offices can readily install as opposed to large cumbersome banks, who are ensnared in bureaucratic red tape. They allow dealmakers to access and evaluate a large number of deals at one time, resulting in a significant savings of time and money.

Other online services that have changed the way family offices communicate with their customers include dashboard serviceslike Wealthica which instantly consolidates the investments of a variety of sources, bringing clients into daily contact with their investments. This is which is a vast improvement over the days when wealth managers gave periodic updates on the state of their clients' investments.

They are just thatthey enable wealth managers to increase their efficiency and speed. Their investments strategy is what matters the most. In the end, the advantage comes from combining traditional and new - continuing to scout out deals in real estate etc as well as exploring investment opportunities in previously unexplored fields, such as food security or climate science. Impact investing is definitely 'arrived within the family office industry. The UBS Global Family Office Report 2018 found that a third of family officers are actively engaged in impact investing. A lot of people are planning to take part in the coming years. There are certain problems with this area, such as issues with measuring impact or performing due diligence. But, the next generation UHNWIs and HNWIs will want their family office to be able find and secure these kinds investments. My company, Plato Capital, is an investment bank that is boutique and is based on the expertise of its founders in family offices, banks, and the tech industry, to offer advice on investment with an emphasis on the entrepreneurial. http://hawkee.com/profile/1530728/ are able to maximize their returns and control the risk through our personal network.

By blending the old and the new, adapting to the changing needs of the younger generation, and preparing to take risks with their own structures and techniques, wealth managers of all kinds are able to stay relevant and prosper during challenging times.
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