How can wealth management firms prepare to face turbulent times [Farnoush Farsiar]

Generational change. Global mobility. Technology revolution. Farnoush Farsiar of EU Today notes these are only a few of the significant changes that affect family offices, and fundamentally challenging their business practices and operations.

Family offices are catering more and more to the younger, mobile generation. In the wake of the financial crisis, everyone is increasingly interested and involved in their investments.

These changes occur at a crucial time in political and economic crisis. If they attempt to continue with their old practices, they will be abandoned by the very people they were created to advise. They need to be flexible and creative when managing investments so that they can give UHNWIs with a true value proposition.

Family offices are available in a variety of sizes and styles. But they need to prioritize efficiency and speed in addition to streamlining the service. Customers will appreciate a smaller group of advisors capable of rapidly adapting to new technologies, as well as hiring external experts when required. These developments make it necessary for the lines between family office and private bank become blurred. The best banks will maintain the trust and loyalty of their family offices while being in the forefront when it comes to technology and the sourcing of deals.

Your success will be contingent on your ability to tap into traditional or network-based sources of deal source. You can also utilize online methods and tools to discover opportunities or deals. Wealth managers can use online deal sourcing platforms to discover deals and opportunities. than banks that are large and cumbersome who are stuck in large-firm bureaucracy. This platform lets dealmakers easily access and evaluate many deals at once which could save them time and money.

Another online service that’s altering the way family offices communicate with their clients is Wealthica. from multiple sources and puts clients into daily contact. It’s a huge change from the past where wealth managers provided occasional updates about the progress of clients’ money. are only that they’re the tools that wealth managers can improve their efficiency and speed. The most crucial aspect to consider when investing is the method that is used to implement these tools. Again, the edge comes from combining the old and the innovative – continuing to seek for deals in real estate and other areas as well as exploring investment opportunities in fields that were previously unexplored like food security or climate science. Impact investing has certainly ‘arrived’ within the family office industry. The UBS Global Family Office Report 2018 showed that one third of family officers are involved in impact investing. Many anticipate taking part in the coming years. There are many hurdles in this field like measuring the impact and conducting due diligence, future generation of HNWIs/UHNWIs will want their family offices to be able find and secure these kinds of investments. Plato Capital, which I started, is an investment bank that is focused on entrepreneurs. Our connections and experience of the local region allows our clients to reduce risk and maximize their capital return.

All types of wealth managers are able to continue to prosper even in difficult times when they blend both the traditional and the contemporary and are open to the changing needs of the market and are willing to take risk with their own structures.