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

Generational shifts Global mobility. Technological transformation. These are just a few of the most significant changes that are affecting family offices and fundamentally threatening their operational structure and methods as reported by Farnoush Farsiar for EU Today.

Family offices cater to more mobile, tech-savvy and younger generation.  Farnoush Farsiar Every client, no matter their age, are more attracted to investing via online trading.  Farnoush Farsiar This has led to an increased enthusiasm for personal investments. Customers do not wish to be left out of the decision-making process for the discretionary portfolios they are required to make.

The changes are occurring in a time of unprecedented financial and political instability. If they attempt to continue with their old practices, they will be abandoned by the very people they were created to advise.  Farnoush Farsiar They have to adapt and be more entrepreneurial in their investment management approach in order to offer a true value proposition for UHNWIs.

Family offices are diverse in dimensions and their scope. They should be able to focus on agility and streamlining their services, not trying to be experts in every area. Customers will appreciate a lower number of advisors who are skilled at implementing rapid changes to technologies and bringing in specialists as required. As the boundaries between family and private banking are blurred, the best firms will have a small team of advisors who can quickly adopt new technologies and work with external specialists when required. This allows the firm to offer an enhanced service to clients.

Your success is contingent upon your capability to tap into traditional networks, reputation-based, and network-based sources of deal source. It is also possible to use online methods and tools to find deals or opportunities. Wealth managers can use online deal sourcing platforms to identify opportunities and deals. They are much easier than banks that are large and cumbersome who are stuck in large-firm bureaucracy. These platforms allow dealmakers to review and access a huge variety of deals at the same time, which is a significant saving of time and effort.

Another online service that's changing the way family offices interact with their clients is Wealthica. The Wealthica dashboard service automatically consolidates investments from a variety of sources and brings clients in daily contact. It's a far cry back to the days where wealth managers provided periodic updates on the state of their clients' funds.

These tools are not the only method wealth managers can increase efficiency and speed of their work. The strategy that underpins their investment strategy is the most important factor. The secret to success is mixing traditional and new. The company are likely to continue looking for deals on real estate and will also be looking at opportunities to invest that were previously not explored like food security or climate science. Impact investing has certainly "arrived" within the world of family offices.  Farnoush Farsiar According to the UBS Global Family Office Report 2018, a third of family-owned businesses are engaged in impact investing with the majority expecting to expand their involvement in the near future. There are many issues in this area, including the challenge of measuring impact and doing due diligence. However the next generation of UHNWIs, and HNWIs, will expect family offices can identify and secure such investments. Plato Capital, my own boutique investment bank, is based on the experience of its founders who have worked in large banks and in the technology industry to offer investment guidance that is entrepreneurial in focus. Our clients are able to successfully manage risk and get the best returns on their capital thanks to our local network.

https://reportlet.co.uk/psc/4JvfQwpTV8vIqepLTGpSXcssw-o/ms-farnoush-farsiar-aidi Wealth managers of all ages can survive in turbulent times by blending old and new, adapting quickly to changing needs, and being willing to take chances with their own structures. Farnoush Farsiar