Notes

How wealth management firms can prepare for turbulent times [Farnoush Farsiar]
Generational changes. Global mobility. Technological revolution. Farnoush Farsiar writes for EU Today that these are only a handful of major changes that impact family offices and pose a serious threat to their operating structures.

Farnoush Farsiar Family offices cater to an increasingly tech-savvy, younger and mobile generation more frequently. The financial crisis and democratisation of trading via online tools have brought all customers, regardless of age and interests, more interested in their investments, meaning they want 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 occur during a time of severe political and economic instability. If family offices continue using their current methods, they may find that the very individuals they were created to advise will abandon them. They should adapt to be more entrepreneurial and develop a value proposition for UHNWIs.

https://www.cbetta.com/director/farnoush-farsiar-aidi-2 Family offices vary in terms of their size and the scope. However, they should be able to focus on efficiency and streamlining their services and not try to be experts in every subject. Clients will appreciate a smaller group of advisors that can quickly implementing new technologies and hiring external experts when required. Since these changes 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 confidence of a family-owned business while remaining ahead of the curve in the sourcing of deals and embracing technology.

The ability to employ traditional, reputation-based, and network-based methods of deal sourcing will result in the success. But, you may make use of online tools to discover opportunities and deals. Wealth managers can use deal sourcing websites to identify opportunities and deals. Farnoush Farsiar They're much simpler than banks that are large and cumbersome that are entangled in big-firm bureaucracy. Dealmakers can access and evaluate large numbers of deals simultaneously, which is a significant time and resource saving.

Wealthica and other online services have also changed the way family offices interact with their clients. They automatically consolidate investments across a variety of sources, and put clients in regular contact with their portfolios. It's a contrast to the past the days when wealth managers could only provide intermittent updates on their clients' investments.

They're not tools for anything else, they're the means that wealth managers can improve their effectiveness and speed. The most important factor in investing is the method that is used to implement these tools. Again, the edge will come from bringing together the old and the innovative - continuing to seek for deals in real estate while also considering investments in previously unexplored fields, such as climate science or food security. The UBS Global Family Office Report 2018 found that impact investing has become a mainstream topic in family offices. One third of these family offices are involved in the type of investing that they are involved in and many are planning to be more involved in the future. There are many hurdles in this area including the measurement of the impact of investments and conducting due diligence the next generation HNWIs/UHNWIs will expect their family offices to determine and secure these kinds of investments. Farnoush Farsiar Plato Capital, my own boutique investment bank, draws on the experiences of its founders who have worked in large banks and the technology industry to offer investment advice that is entrepreneurial in the focus. Farnoush Farsiar Our personal knowledge of the local area and network allows our clients to effectively control risk and earn the best returns on their capital.

Through blending the traditional with the modern, adjusting to the demands of the young generation and being prepared to be risk-averse with their own structures and techniques, wealth managers of all kinds can stay relevant and prosper even in the midst of challenging times.
Website: https://www.difc.ae/public-register/rumi-investment-limited/