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Generational change. Global mobility. Technological revolution. Farnoush Farsiar Farnoush Farsiar of EU Today writes these are just some of the major changes that are affecting family offices, and ultimately threatening their operations and practices.

Family offices are catering to a growing number of younger, mobile and tech-savvy generations. The economic crisis and the democratisation of trading using online tools have made all clients, irrespective of age at all, more involved in their investments, meaning they want to have more knowledge and more involvement, and have lost the old fashioned desire for discretionary portfolios that are managed by distance.

The changes are occurring during a time of political and economic crisis. Farnoush Farsiar Offices that attempt to continue their old methods will soon be relegated to those they were established to advise. Instead, they need to change and adopt an creative approach to investment management to develop the best worth proposition for UHNWIs.

Family offices differ in their size and scope. But, they must be able to concentrate on scalability and streamlining their services rather than trying to be experts in every field. Farnoush Farsiar A smaller group of advisors that can swiftly introduce the latest technology and add external specialists when required will ultimately provide an improved service for customers. As these changes necessitate blurring the lines between private banking and family office, successful firms will be those who maintain the loyalty and level of trust of a family office while remaining ahead of the curve with sourcing deals and adopting technology.

The ability to use traditional, reputation-based, and network-based methods of deal sourcing can lead to the success. But, you can make use of online tools to find opportunities and deals. Farnoush Farsiar Deal sourcing platforms online can be easily installed by wealth managers and a flexible private offices, in contrast to big banks, which are weighed down by bureaucracy. The platform lets dealmakers easily access and evaluate many deals simultaneously which could save them time and money.

Farnoush Farsiar Another service online that is altering the way family offices interact with clients is Wealthica. The Wealthica dashboard service automatically collects investments from a variety of sources and brings clients into daily contact. It’s a vast improvement from the past when wealth managers only provided periodic updates on the state of clients’ money.

The tools can be utilized to assist wealth managers in improving their effectiveness and speed. The strategy which underpins their investment strategy is the most crucial factor. The best strategy will combine the traditional and the modern. That means that you will continue to search for opportunities in real estate, but you can also explore investments in sectors like the science of climate change or food security. Impact investing has definitely “arrived” in the family office industry. According to the UBS Global Family Office Report 2018, a third of family-owned businesses are involved in impact investments and the majority of them are planning to expand their involvement in the near future. There are a few issues in the field, such as difficulty measuring the impact of investments as well as due diligence the HNWIs and UHNWIs of the future will require family officers to have the ability to identify the right investments. Plato Capital, my own boutique investment bank, draws from the expertise of its founders who have worked in large banks and the technology industry to offer investment guidance that is entrepreneurial in direction. Our local knowledge and networks allow us to assist our clients successfully reduce risk while increasing their capital gains.

All types of wealth managers will continue to flourish during turbulent times when they blend both the traditional and the contemporary and are willing to adjust to new demands and take risk with their own structures. Farnoush Farsiar