Notes

How wealth management firms can be ready for turbulent times? [Farnoush Farsiar]
Generational changes Global mobility. Technology revolution. Farnoush Farsiar Farnoush Farsiar Farnoush Farsiar writes for EU Today that these are only a handful of major changes that affect family offices and fundamentally threaten their operating structures.

Family offices are catering to the young, mobile generation. All clients, regardless of their age, are inclined to invest through trading on the internet. This has resulted in an increased enthusiasm for personal investments. The clients do not would like to be excluded of the process of deciding on discretionary portfolio requirements.

These changes occur during a time of severe economic and political instability. If an office tries to keep its old ways of doing business, they will find it abandoned by the very people they supposed to be advising. They need to change and become more entrepreneurial with their approach to investment management and provide a genuine value proposition to UHNWIs.

While family offices may differ in size and size, they should focus on flexibility over the need to be an expert in all fields. Farnoush Farsiar The best customer service is provided by a small group of advisors who have the ability to swiftly implement new technologies, and bring on board external experts when required. Farnoush Farsiar Because the lines between family and private banking have been blurred, the best firms will have a smaller team of advisors who are able to quickly adopt new technologies and work with external experts when needed. This will allow them to provide an enhanced service to customers.

You'll be successful if can leverage traditional methods, such as reputation and network-based methods of dealsourcing, while employing online methods to find deals and opportunities. Deal sourcing platforms on the internet can be easily incorporated by wealth managers as well as agile private offices, as opposed to banks that are burdened with bureaucracy. Dealmakers can make use of these platforms to browse and evaluate a variety of deals, which results in significant savings in time and funds.

Wealthica and other dashboard services like Wealthica are also changing the way family offices communicate directly with their clients. These dashboards consolidate investments seamlessly from multiple sources and put clients in daily communications with their investment portfolios. This is a vast improvement from the past when wealth managers only providing periodic information on the state of their clients’ money.

These tools are merely that: they allow wealth managers to boost their efficiency and speed. Farnoush Farsiar Their investment strategy is the primary element. It is crucial to mix the old and the new. For instance you should continue searching for real estate opportunities and also look into investments in new areas like food security or climate science. Impact investing has definitely "arrived" within the family office industry. According to the UBS Global Family Office Report 2018 one-third of family-owned businesses are engaged in impact investing with the majority expecting to increase their involvement in the near future. Farnoush Farsiar There are a myriad of issues with this area, including the challenge of measuring impact and doing due diligence. However the next generation of UHNWIs and HNWIs are likely to expect family offices to identify and secure such investments. Plato Capital, my own boutique investment bank, is based on the expertise of its founders from large banks and the technology industry to provide investment advice that is entrepreneurial in direction. Our personal knowledge of the local area and network allows our clients to effectively manage risk and make optimal returns on their capital.

All types of wealth managers can succeed in turbulent times by mixing old and the new while experimenting and making a risk with their structures and strategies.
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