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

Generational change.  https://www.anochords.org/farnoush-farsiar-why-are-so-few-women-in-finance/ Global mobility. Technological transformation.  Farnoush Farsiar Farnoush Farsiar writes for EU Today that these are just a few key changes that affect family offices and pose a serious threat to their structures of operation.

Family offices cater to technologically advanced, mobile and younger generation. Everyone, regardless of their age, are more interested in investing through trading online. This has resulted in increasing interest in personal investments. Clients no longer want to be left out of the decision-making process regarding discretionary portfolio requirements.

These shifts, which happen in a period of unprecedented economic and political instability are a sign of the end of the fee-based family office model. Offices that attempt to keep their current practices will soon be relegated by the people they were founded to advise. They must be flexible and innovative in managing investments to offer UHNWIs with a true value proposition.

Family offices are available in various sizes and styles. However, they must prioritize efficiency and speed and improving the efficiency of their services. Customers would appreciate a smaller staff of advisors that can quickly adapting to new technologies, and the hiring of external experts as needed. These new technologies require that the lines between private and family offices banks blur. The most successful firms maintain the trust and loyalty of their family office while being ahead of the curve in terms of technology and sourcing deals.

Your success will be contingent on your ability to tap into traditional, network-based, and reputation-based sources of deal sourcing. You can also use online methods and tools to discover opportunities or deals. Wealth managers can use deal sourcing websites to identify opportunities and deals. They're much simpler than banks that are large and cumbersome that are entangled in big-firm bureaucracy. Dealmakers can access and evaluate large numbers of deals simultaneously this is a huge savings in time and resources.

Farnoush Farsiar Another online service that's altering the way family offices interact with their clients is Wealthica. This dashboard service automatically consolidates investment from multiple sources and puts clients in daily communication.  Farnoush Farsiar It's a vast improvement from the past when wealth managers would only provide occasional updates about the progress of the clients' investments.

These tools are only that, they're the means wealth managers have to improve their efficiency and speed. The way they invest matters the most. It is essential to blend the old and the new. For instance you should continue searching for deals in real estate, while also looking into investment opportunities in emerging areas such as climate science or food security. Impact investing is definitely 'at last within the world of family offices. the UBS Global Family Office Report 2018 showed that one-third of family offices are now active in impact investing, and the majority expect to be more active in the near future. Although there are certainly issues in this field, including the difficulty of measuring impact and carrying out due diligence, the next generation of HNWIs and UHNWIs are expected to anticipate family offices to be able find and secure these types of investments. My own firm, Plato Capital, is an investment bank that is boutique and draws on the experience of its founders, in family offices, big banks, and the tech industry, to offer investment advice with a a focus on the entrepreneurial. Our clients are able to successfully control risk and receive the most value for their investment due to our local network.

Farnoush Farsiar Wealth managers can flourish in turbulent times by blending past and the future, adapting to the needs of the young generation and taking risks with their own structures. Farnoush Farsiar