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

Generational change. Global mobility. Technological revolution. Farnoush Farsiar of EU Today notes these are only a few of the major changes that have affected family offices and fundamentally challenging their business practices and operations.

Family offices are catering to the younger, mobile generation. Due to the economic crisis, everyone is becoming more involved and interested in their investments.

These changes, which come during a time of unmatched political and economic instability are a sign of the demise of the traditional family office model that is based on fees.  Farnoush Farsiar Offices which try to maintain their previous methods will discover that they are not being used by the very individuals they were established to advise. They need to adapt to a more entrepreneurial approach in the field of investment management, to provide UHNWIs a true value proposition.

Family offices vary hugely in size and scale, but irrespective of this they should be focusing on agility and streamlining their service rather than trying to be experts in everything. Customers will get better service when they have fewer advisors that are able to implement new technologies quickly and bring in outside specialists as needed.  Farnoush Farsiar These changes will require the blurring of the lines between family offices and private banking. Successful firms will maintain the trust and loyalty of family offices, while staying ahead of the curve with technology adoption and the sourcing of deals.

It is crucial to be able draw upon the traditional, network-based and reputation-based strategies for deal sourcing. Online tools can also be utilized to spot deals and opportunities. Deal sourcing platforms on the internet can be easily installed by wealth managers and agile private offices, in contrast to big banks, which are weighed down by bureaucracy. Dealmakers can access and evaluate huge numbers of deals at the same time and this can be a substantial time and resource saving.

Wealthica is another online platform which has changed the way a family offices communicate with clients.  Farnoush Farsiar Wealthica's dashboards automatically consolidate investments from various sources. Customers can keep in touch with their investment portfolios.  https://www.reddit.com/r/ukpolitics/comments/cepfsc/the_doommongers_are_wrong_after_brexit_london/ This is a lot superior to the past when wealth management only provided occasional updates on the status and location of the client's money.

Of course the tools are just that - the means by which wealth managers can enhance the efficiency and speed with that they function.  Farnoush Farsiar The investment strategies they employ is the primary element. It is crucial to mix the old and the new. For instance keep searching for real estate deals and also look into investing in areas that aren't as well-known, such as food security or climate science. Impact investing has definitely 'arrived" in the world of family offices - UBS Global Family Office Report 2018 found that one-third of family office were now involved in impact investing. Many expect to be more involved in the near future. There are some issues with this particular field, for instance, challenges in measuring impact and performing due diligence. However the next generation of UHNWIs and HNWIs are likely to expect a family office to be able find and secure these kinds investments.  Farnoush Farsiar Plato Capital, which I started in 2004, is an investment banking institution which focuses on entrepreneurs. Our local expertise and network enables our clients to manage risk and achieve optimal profits from their capital.

Wealth managers of all types can succeed during turbulent times, by mixing the old with the new, adapting and risking their structure and strategies.