How wealth management companies can be prepared for turbulent times? [Farnoush Farsiar]

Generational change. Global mobility. Technological transformation. 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 are increasingly catering to the young, mobile generation.  https://www.businesstelegraph.co.uk/why-there-are-few-women-in-finance-farnoush-farsiar/ All clients, regardless their age, are becoming more attracted, regardless of their financial situation in managing their personal investment portfolios. This means that they are looking for more information and involvement and not just a portfolio manager to manage.

Farnoush Farsiar These changes, which occur in a period of unprecedented economic and political turmoil are a sign of the demise of the fee-based family office model.  Farnoush FarsiarFarnoush Farsiar If an office attempts to keep its old ways of doing business, they'll be relegated by the very people they were supposed to be advising. They have to adapt and be more entrepreneurial with their approach to investment management, to provide a real value proposition to UHNWIs.

Family offices vary in dimensions and their the scope. However, they should be able to focus on agility and streamlining their services and not try to be experts in each area.  Farnoush Farsiar The best service for clients will be offered by a smaller group of advisors who are able to swiftly implement new technologies, and bring on board external experts as needed. As these changes necessitate the blurring of lines between family offices and private banking, successful firms will be those who maintain the trust and loyalty of their clients. trust that a family office has while staying in the forefront of sourcing deals and adopting technology.

You'll be successful if are able to leverage traditional methods, such as reputation and network-based approaches to dealsourcing while also making use of online tools to identify deals and opportunities. Wealth managers and private offices that can manage large numbers of deals online are far more efficient than cumbersome banks. Dealmakers can review and access a huge variety of deals at the same time, resulting in a significant savings of time and effort.

Other services online that have changed the way family offices interact with their customers include dashboards, like Wealthica, which automatically consolidate investments from a range of sources, bringing customers in daily contact with their investments - a far cry from the past when wealth managers offered only periodic information on the status of their customers' investments.

Of course the tools are just tools - the methods by which wealth managers can improve the efficiency and speed with that they function. The most crucial element to consider when investing is the method that is used to implement the strategies. The key to success is to combine traditional methods with new ones. It is likely that you will continue to search for deals in real estate, and also explore investments that were previously not explored, like food security and climate science. Impact investing has certainly 'arrived' within the family office sector. The UBS Global Family Office Report 2018 showed that one third of family members are actively involved with impact investing. Many anticipate taking part in the coming years. There are a few issues in the field, such as difficulties in measuring impact as well as due diligence HNWIs/UHNWIs in the future will want family officers to have the ability to identify these investment opportunities. My company, Plato Capital, is an investment bank that is boutique and draws on the experience of its founders, including family offices, big banks, and in the tech industry to provide investment advice with a focus on the entrepreneurial. Our clients are able to maximize their returns and control the risk through our personal network.

Wealth managers of all ages are able to survive turbulent times by blending old and newideas, quickly adapting to the changing demands, and being open to taking chances with their own systems.