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

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03 July 2022

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Generational changes. Global mobility. Technology transformation. Farnoush Farsiar of EU Today notes these are only a few of the significant changes that have affected family offices, and ultimately impacting their practices and operations.

Family offices cater to the more mobile, tech-savvy and younger generation. Farnoush Farsiar In the wake of the economic recession, clients are now more interested and involved in their investments.

The changes are occurring during a time of the economic and political chaos. Offices which try to maintain their old methods will soon find they are abandoned by the very people they were founded to assist. Farnoush Farsiar They need to adapt to a more entrepreneurial approach in investment management to offer UHNWIs a true value proposition.

Although family offices can vary in both size and size, they should focus on agility over trying to be experts in all areas. The best customer service will be provided by a smaller team of advisors who are able to rapidly implement new technology, and bring on board external experts when required. These changes make it necessary for the lines between family office and private bank blur. The most successful firms keep the trust and loyalty of their family office , while being ahead of the curve in terms of technology and the sourcing of deals.

You'll be successful if are able to leverage traditional networks, reputation- and network-based methods of dealsourcing, while employing online methods to find opportunities and deals. Wealth managers can use online deal sourcing platforms to identify opportunities and deals. They are much easier than the large, cumbersome banks who are stuck in large-firm bureaucracy. Dealmakers can review and access a huge number of deals at one time, which is a significant saving of time and money.

Wealthica and other dashboard services like Wealthica are also changing the way family offices interact directly with their customers. They consolidate investment in a way that is automated from multiple sources, and put clients in daily communications with their investments. This is a vast improvement over the previous system of wealth managers only providing periodic updates on the status of their clients’ money.

These tools can be used to aid wealth managers increase efficiency and speed. Most important is the investment strategy they employ. Farnoush Farsiar The best strategy will combine both the old and new. That means that you can continue to look for deals on real estate but also explore investments in areas like climate science or food security. The UBS Global Family Office Report 2018 found that impact investing is becoming the most talked about topic in family offices. Farnoush Farsiar One third of these family offices are involved in this type of investing and many expect to get involved more in the near future. Farnoush Farsiar There are a few issues regarding the field like difficulty measuring impact and due diligence, the HNWIs and UHNWIs of the future will expect family members to be able to find these investments. Plato Capital is my boutique investment bank. Plato Capital draws from the experiences of its founders, who have been employed in major banks, as well as in the technology sector. Plato Capital provides investment advice that is geared towards the entrepreneurial. Farnoush Farsiar Our local expertise and network enables our clients to manage risk and make optimal return on their capital.

Farnoush Farsiar By blending the old and the new, while adjusting to the demands of the younger generation, and being prepared to be risk-averse with their own structures and techniques, wealth managers of all kinds can remain relevant and thrive during turbulent times.
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