How wealth management companies can be prepared for turbulent times? [Farnoush Farsiar]
Generational changes. Global mobility. Technology revolution. Farnoush Farsiar writes for EU Today that these are just some of the major changes that affect family offices and could fundamentally alter their operational structures.
Family offices are catering to a younger, tech-savvy, and mobile-savvy generation more often. The financial crisis as well as the democratisation and trading online have led to clients becoming more keen on their investments. They seek more control and information, and no longer want the discretionary portfolio management mandates of their clients in a jiffy.
These changes are coming at a time where there an unprecedented level of economic and political instability. They also mark the end of the fee-based family offices model. If family offices continue using their current methods, they may find that the very people they were created to assist will not be able to keep them. Farnoush Farsiar They have to adapt and be more innovative in their investment management approach in order to offer a true value proposition to UHNWIs.
Although the size and scope of family offices can be diverse, it is crucial that they prioritize efficiency and speed rather than being experts in all things. A smaller group of advisors who are able to quickly introduce new technologies and bring in external experts when needed will ultimately provide better service to customers. These changes have led to the blurring of distinctions between private banking and family offices. The most successful firms will continue to preserve the loyalty of family offices and the level of trust they have while also being ahead of the curve in sourcing deals and implementing new technology.
It is crucial to be able to draw on the traditional, network-based and reputation-based strategies for deal sourcing. https://www.abcmoney.co.uk/2022/04/14/farnoush-farsiar-about-challenges-woman-business-leaders-face/ Online tools can also be utilized to spot deals and opportunities. Wealth managers and private offices that can manage large numbers of deals on the internet are superior to banks with a cumbersome structure. This platform lets dealmakers easily review and access a range of deals at once which could save them time and money.
Wealthica is another online platform which has changed the way a family offices communicate with clients. https://www.tumgir.com/farnoush-farsiar8dddbb11 Wealthica's dashboard features will automatically combine investments from different sources. Customers can keep in touch with their investments. https://www.trackometrix.com/farnoush-farsiar-discusses-challenges-women-business-leaders-confront-4/ This is much superior to the past when wealth management provided only periodic updates regarding the progress and whereabouts of the money they had earned for their clients.
These tools are only that, they're the means wealth managers have to improve their efficiency and speed. The strategy which underpins their investments is ultimately the most important aspect. It is important to combine the traditional and the innovative. For example keep searching for real estate opportunities and also look into investing in areas that aren't as well-known, such as climate science or food security. https://www.trackometrix.com/farnoush-farsiar-why-are-so-few-women-in-finance-2/ Impact investing has definitely arrived within the family office world - the UBS Global Family Office Report 2018 revealed that a third of family offices are now engaged in impact investing and most expect to become more involved in the near-future. Although there are some issues in the field, such as the difficulty of measuring impact as well as due diligence HNWIs/UHNWIs of the future will expect family officers to have the ability to identify the right investment opportunities. Plato Capital is a boutique bank that provides advice on investing. It draws on the knowledge of its founders from large banks, family offices as well as the tech industry to provide entrepreneurs with investment guidance. Our connections and experience within the local community allow our clients to effectively manage risk and increase their capital returns.
Wealth managers of all ages can thrive in turbulent times by blending old and new, adapting quickly to changing needs, and being open to taking chances with their own structures.