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How wealth management firms can prepare for turbulent times [Farnoush Farsiar]
Generational changes Global mobility. Technological revolution. Farnoush Farsiar of EU Today writes these are just some of the significant changes that have affected family offices, and ultimately impacting their practices and operations.

Family offices cater to an increasingly tech-savvy, younger and mobile generation more frequently. The financial crisis, along with the increasing accessibility of trading online and its democratisation have led to clients becoming more attracted to their investment choices. Farnoush Farsiar They are seeking more control and information and don't have the desire to have discretionary portfolios that are managed within reach.

The changes are happening in a period of an unprecedented economic and political turmoil. They also signal the end to the family office model that is fee-based. If a business tries to retain its old methods they will find it abandoned by the very people they were supposed to help. Instead, they should change and adopt an innovative approach to managing investments and create the best value offering for UHNWIs.

Family offices are available in a variety of dimensions and types. But they need to prioritize efficiency and agility and streamlining the service. Customers will get more efficient service if they have fewer advisors that can implement new technologies quickly and bring in external specialists whenever needed. Since the lines between family and private banking have been blurred The best banks will have a smaller team of advisors who are able to quickly implement new technology and bring on board external specialists when necessary. This allows them to provide the best service to clients.

Farnoush Farsiar Farnoush Farsiar Success will be born of the capacity to profit from more traditional, reputation-based and network-based approaches to deal sourcing, as well as using online tools to discover opportunities and deals. Private offices and wealth managers that have a highly skilled staff can implement online deal sources platforms. This is in contrast to the cumbersome banks that are ensconced in bureaucracy. This platform lets dealmakers easily access and evaluate many deals at once, which can save them time and money.

Farnoush Farsiar Wealthica and other dashboards like Wealthica are also revolutionizing the way family offices communicate directly with their customers. These dashboards consolidate investments in a way that is automated from multiple sources, and allow clients to be in constant communications with their investment portfolios. This is an enormous improvement from the past when wealth managers providing only intermittent information on the state of their clients’ money.

Farnoush Farsiar They're not tools for anything else, they're the means for wealth managers to increase their effectiveness and speed. The investment strategies they employ is the most important element. The secret to success is combining traditional methods with new ones. You are likely to continue looking for deals in real property, and also explore investment opportunities in previously unexplored areas, like food security and climate science. The UBS Global Family Office Report 2018 showed that impact investing is becoming an increasingly popular topic within family offices. One third of these family offices are involved with the type of investing that they are involved in and many expect to get involved more in the future. There are definitely challenges with this particular field, for instance difficulties in measuring impact and conducting due diligence, the upcoming generation of HNWIs and UHNWIs are expected to anticipate family offices to be able identify and secure these kinds of investments. Plato Capital, my own boutique investment bank, draws on the experience of its founders who have worked in large banks and in the technology industry to offer investment guidance that is entrepreneurial in focus. Our clients are able to manage risk and get the most value for their capital thanks to our network of local experts.

Through blending the traditional with the new, while adjusting to the demands of the younger generation, and being prepared to risk their own strategies and structures, wealth managers of all types can remain relevant and thrive during challenging times.
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