How wealth management companies can be prepared for turbulent times? [Farnoush Farsiar]
Generational changes. Global mobility. Technological transformation. These are just a few of the key changes impacting family offices, and that are fundamentally changing their structures and practices, writes Farnoush Farsiar for EU Today.
Family offices serve a younger, tech-savvy, and mobile generation more often. Because of the financial crisis, all clients are now more interested and involved in their investments.
The changes take place at a time of extreme economic and political instability. Offices which try to maintain their previous methods will be relegated to the very individuals they were established to advise. Instead, they need to adapt and adopt a more entrepreneurial approach to investment management to develop the best worth proposition for UHNWIs.
Although the scope and size of family offices are varied, it is important that they focus on flexibility and streamlining over being experts in all things. Customers will enjoy better service if they have fewer advisors that can quickly implement new technologies and also bring in specialists from outside when required. As these changes necessitate the blurring of the line between private banking and family office the most successful companies will be those that maintain the loyalty and trust of a family office whilst remaining ahead of the curve in new technology and deals to source.
The ability to use traditional, reputation-based, and network-based methods for deal sourcing can lead to the success. However, you can also use online methods to locate deals and opportunities. Wealth managers and private offices that have a highly skilled staff can implement online deal sourcing platforms. This is in contrast to the cumbersome banks that are in bureaucracy. Dealmakers can utilize these platforms to quickly browse and evaluate a variety of deals. This results in significant savings in time and money.
Other online services that have changed the way family offices communicate with their customers include dashboard serviceslike Wealthica which instantly consolidates investments from a range of sources, bringing customers in daily contact with their investments. This is an improvement from the days when wealth managers gave periodic updates on the progress of their clients' funds.
These tools aren't just tools they're the tools that wealth managers can improve their effectiveness and speed. The strategy that underpins their investment strategy is the most crucial factor. The advantages will come from combing traditional and innovative strategies - continue to search out deals in realty as well as investing in previously unexplored areas for example, the effects of climate change and food security. The UBS Global Family Office Report 2018 revealed that impact investing is becoming a mainstream topic in family offices. About http://companycheck.co.uk/search?term=farnoush farsiar of family offices are involved in the type of investing that they are involved in and many are planning to be more involved in the near future. There are a few issues with the field such as difficulty measuring the impact of investments as well as due diligence HNWIs/UHNWIs of the future will expect family members to be able to locate these investment opportunities. Plato Capital is a boutique bank that provides investment advice. It draws upon the knowledge of its founders who have worked in big banks, family offices and in the tech industry to offer entrepreneurial investment guidance. Our connections and experience in the local area allows our clients to reduce risk and increase their capital returns.
Wealth managers can thrive in turbulent times by blending past with the present and adapting to the demands of the younger generation, and making a risk with their own structures.