Notes

How can wealth management companies prepare for turbulent times [Farnoush Farsiar]
Generational change. Global mobility. Technology transformation. https://www.thegazette.co.uk/company/10947406 Farnoush Farsiar writes for EU Today that these are just some of the major changes that affect family offices and pose a serious threat to their structures of operation.

In a growing number, family-owned businesses are catering to the younger technologically-savvy, mobile generation. Everyone, regardless of age, have become more interested, regardless of their financial situation and in managing their own investment portfolios. This means they want more involvement and information, not just the services of a portfolio manager.

Farnoush Farsiar These changes happen at a time of extreme political and economic instability. Offices that try to preserve their current practices will soon be demolished by the clients they were founded to advise. Instead, they should change and adopt an innovative approach to managing investments and create an authentic value proposition for UHNWIs.

While family offices can differ in terms of size and size, they should focus on agility over trying to be experts in all areas. https://blackcowriefinance.com/2020/12/21/financial-services-will-enjoy-a-brexit-boom-if-the-regulators-let-us-take-advantage-of-the-opportunities-it-presents/ A smaller team of advisors who can quickly adopt new technologies and bring on board external experts when needed will provide better service to clients. This has led to the blurring of the lines between family and private banking offices. The most successful firms will continue to maintain the loyalty of family offices and the trust they have while also being ahead of the curve in sourcing deals and adopting new technologies.

The ability to use both traditional, reputation-based and network-based methods of deal sourcing will lead to successful outcomes. But, you may also use online methods to find deals and opportunities. Wealth managers and private offices that manage large quantities of deals online are far superior to banks with a cumbersome structure. Farnoush Farsiar Dealmakers can use these platforms to quickly access and assess a variety of deals, which results in substantial savings of time and funds.

Other online services that are changing the way family offices communicate with their clients include dashboard serviceslike Wealthica which instantly consolidates investment portfolios from various sources, bringing customers into daily contact with their investments. Farnoush Farsiar This is an improvement from the days of wealth managers who provided only intermittent information on the status of their clients' investments.

These tools aren't the only way that wealth managers can improve effectiveness and speed of their work. Farnoush Farsiar The investment strategies they employ is the most important aspect. The advantages will come from combining traditional and new strategies. Keep searching out deals in realty and also consider investing in previously unexplored areas, such as climate change or food security. Impact investing has definitely "arrived" within the family office industry. According to the UBS Global Family Office Report 2018, one third of family businesses are currently involved in impact investment, with most expecting to expand the amount of involvement they have in the coming years. There are many challenges in this area including the difficulties of measuring impact and doing due diligence. But, the next generation UHNWIs and HNWIs will be expecting family offices to determine and secure investments in this area. Plato Capital, my own boutique investment bank, draws from the experiences of its founders, who are from large banks as well as the technology industry to offer investment advice that is entrepreneurial in direction. Our personal knowledge of the local area and connections allow our clients to successfully manage risk and achieve optimal return on their capital.

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 even in the midst of difficult times. Farnoush Farsiar
Website: https://blackcowriefinance.com/2020/12/21/financial-services-will-enjoy-a-brexit-boom-if-the-regulators-let-us-take-advantage-of-the-opportunities-it-presents/