Notes

How wealth management companies can be prepared for turbulent times? [Farnoush Farsiar]
Generational changes. Global mobility. Technological transformation. Farnoush Farsiar of EU Today writes that these are but a few of the major changes that have affected family offices, and fundamentally challenging their business practices and operations.

Family offices are geared towards the increasingly mobile, tech-savvy and younger generations. The financial crisis, along with the increasing accessibility of trading online and its democratisation has led to more clients becoming keen on their investment choices. https://professionalparaplanner.co.uk/tag/advice-threat/ They want more control and information and don't have the desire to have discretionary portfolio mandates handled at arm's reach.

The changes are happening at a time when there an unprecedented economic and political turmoil. They also mark the end of the fee-based family offices model. Offices that attempt to keep their old methods are likely to be demolished by the clients they were established to advise. They need to change to be more entrepreneurial and develop a value proposition for UHNWIs.

Although the scope and size of family offices can be different, it's important that they prioritize agility and streamlining rather than being experts in everything. A smaller team of advisors who can quickly introduce the latest technologies and bring on board external specialists when necessary will ultimately provide better service to customers. Farnoush Farsiar These changes will result in the blurring of family offices and private banking. Successful firms will maintain the trust and respect of family offices while staying ahead of the curve in the adoption of technology and purchasing deals.

Your success will be contingent on your capability to tap into traditional or network-based sources of deal source. You can also make use of online tools and methods to discover opportunities or deals. Deal sourcing platforms online are just one of the tools wealth managers and agile private offices can readily install as opposed to large cumbersome banks, who are mired in large-firm bureaucracy. Dealmakers can review and access a huge number of deals at one time - a substantial saving of time and resources.

Wealthica and other services on the internet are changing the way family offices interact with their clients. They consolidate investment portfolios across various sources and bring clients into daily contact with their portfolios. This is a far cry away from the days when wealth managers could only provide intermittent updates to their clients' performance.

Farnoush Farsiar They aren't the only way wealth managers can increase the efficiency and speed of their work. The strategy which underpins their investments is ultimately the most crucial factor. The key to success is to combine traditional methods with new ones. It is likely that you are likely to continue looking for deals in real property, and also explore investments that aren't explored before like food security or climate science. Impact investing has definitely "arrived" within the world of family offices. According to the UBS Global Family Office Report 2018, one third of family-owned businesses are involved in impact investment and the majority of them are planning to grow their involvement in the near future. https://www.trackometrix.com/farnoush-farsiar-why-are-so-few-women-in-finance-2/ https://twitter.com/BrexitCentral/status/1140499332128530432 There are a few issues in the field, such as difficulties in measuring the impact of investments and due diligence, HNWIs/UHNWIs of the future will expect family members to be able to find these investment opportunities. Plato Capital, my own boutique investment bank, draws from the experience of its founders who have worked in large banks and in the technology industry to provide investment advice that is entrepreneurial in direction. Our clients are able to maximize their returns and control risks through our own network.

Farnoush Farsiar Wealth managers of all types can succeed during turbulent times, by mixing the old with the new by adjusting and taking risks with their structures and methods.
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