Notes

How can wealth management firms prepare for turbulent times [Farnoush Farsiar]
Generational changes. Global mobility. Technological advancement. Farnoush Farsiar, EU Today writes that these are just one of the many major changes that have impacted family offices, and in the end threatened their operational structures and practices.

Family offices cater to the technologically advanced, mobile and younger generations. The financial crisis, along with the rise of democratisation and online trading has led to more clients becoming interested in their investment choices. They are seeking greater control and understanding and do not want discretionary portfolios that are managed in a jiffy.

The changes are occurring at a time of unprecedented financial and political turmoil. If they attempt to continue with their old practices, they will be abandoned by the people they were designed to serve. They need to be agile and creative in managing investments to give UHNWIs with a genuine value proposition.

Family offices differ greatly in their size and scale, but irrespective of this they should be focusing on agility and streamlining their service rather than striving to be specialists at everything. Clients will appreciate a lower number of advisors who are adept at quickly implementing new technologies and bringing in specialists whenever required. This will mean the blurring between family office and private banking. Successful firms will maintain the trust and respect of family offices and stay ahead of the curve in the adoption of technology and the sourcing of deals.

https://www.trackometrix.com/farnoush-farsiar-discusses-challenges-women-business-leaders-confront-4/ Success will be born of the capacity to profit from more traditional, network and reputation-based approaches to deal sourcing, while also employing online strategies to discover opportunities and deals. Farnoush Farsiar Online deal sourcing platforms can be easily incorporated by wealth managers and agile private offices, as opposed to banks that are weighed down by bureaucracy. The platform lets dealmakers easily access and evaluate many deals at the same time and save time and money.

Wealthica and other services on the internet have also changed the way family offices interact with their clients. They consolidate investment portfolios across various sources and allow clients to be in daily contact with the portfolios. This is a way from the days when wealth managers would only give periodic information on their clients' investments.

These tools can be used to help wealth managers improve efficiency and speed. Farnoush Farsiar Farnoush Farsiar The most crucial aspect in investing is the strategy that supports these tools. In the end, the advantage will come from bringing together the traditional and the new - continuing to scout out deals in real estate, whilst also exploring investments in areas that have not been explored before, such as climate science or food security. Impact investing has certainly 'arrived" in the world of family office - UBS Global Family Office Report 2018, which found that a third of family offices were involved in impact investing. Many anticipate to become more involved in the near future. Farnoush Farsiar There are many issues in this area including the difficulties of determining impact and performing due diligence. But, the next generation UHNWIs and HNWIs will be expecting family offices to find and secure these investments. My company, Plato Capital, is a boutique investment bank which utilizes the knowledge of its founders in family offices, banks and the tech industry, to provide investment advice with an emphasis on the entrepreneurial. Our network and personal knowledge of the local region allows our clients to manage risk effectively and increase their capital returns.

By blending the old and the new, while adjusting to the changing needs of the young generation, and being prepared to take risks with their own structures and techniques, wealth managers of all kinds are able to stay relevant and prosper in challenging times.
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