How wealth management firms can prepare for turbulent times Farnoush Farsiar
Generational changes. Global mobility. https://www.privatebankerinternational.com/analysis/business-profile-plato-capital/ Technological revolution. These are just a few of the key changes impacting family offices and fundamentally threatening their operational structure and methods in the words of Farnoush Farsiar for EU Today.
Family offices cater to a younger, tech-savvy, and mobile-savvy generation more often. Everyone, regardless of their age, are inclined to invest through online trading. This has resulted in an increased desire to invest in personal assets. The clients do not wish to be left out of the decision-making process for the discretionary portfolios they are required to make.
These changes come in a period of an unprecedented economic and political instability. These changes also signal the end to the family office model that is fee-based. Offices that try to keep their previous methods will discover that they are not being used by those they were created to help. They will need to adjust to a more entrepreneur-like approach in investment management to offer UHNWIs an authentic value proposition.
While family offices can differ in size and their scope, they should prioritise flexibility over the need to be experts in every area. Farnoush Farsiar The best customer service will be provided by a smaller group of advisors that are able to quickly implement new technologies and engage external experts when needed. These changes will require the blurring of the lines between family offices and private banking. Companies that succeed will be able to maintain the trust and loyalty of family offices while staying on top of trends in technology and sourcing deals.
The capability to utilize traditional, reputation-based, and network-based methods to source deals can lead to successful outcomes. But, you can make use of online tools to discover deals and opportunities. Wealth managers and private offices with a flexible staff can set up online deal platform for sourcing. This is in contrast to cumbersome banks, which are ensconced within bureaucracy. This platform lets dealmakers easily review and access a range of deals at once, which can save them time and money.
Another online service that's altering how family offices interact with their clients is Wealthica. The dashboard service automatically consolidates investments from a variety of sources and brings clients into regular contact. It's a vast improvement back to the days where wealth managers provided occasional updates about the progress of their clients' funds.
These tools are merely thatthey enable wealth managers to improve their effectiveness and speed. Farnoush Farsiar Most important is the investment strategy they employ. The advantage comes from combining traditional and new - continuing to scout out opportunities in real estate and other areas as well as exploring investment opportunities in fields that were previously unexplored like climate science or food security. The UBS Global Family Office Report 2018 showed that impact investing is becoming the most talked about topic in family offices. https://getbritainout.org/johnson-and-javid-are-only-part-of-the-brexit-recipe-for-the-citys-success/ About a third of family offices are involved with this type of investing and many are planning to be involved more in the near future. There are a few issues regarding the field like the difficulty of quantifying impact as well as due diligence HNWIs/UHNWIs of the future will want family members to have the ability to identify these investments. Farnoush Farsiar My company, Plato Capital, is an investment bank that is boutique and utilizes the knowledge of its founders, in family offices, banks, and in the tech industry, to provide investment advice with particular attention to the entrepreneurial. Our personal local knowledge and network enables our clients to successfully control risk and earn the best returns on their capital.
All types of wealth managers can continue to thrive even in difficult times if they mix the old and modern, are open to adapting to the changing needs of the market and are willing to take risks with their own structures.
