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Generational changes. Global mobility. Technology innovation. Farnoush Farsiar writes for EU Today that these are just a few key changes that will affect family offices and could fundamentally alter their operational structures.

In a growing number, family-owned businesses are catering to the younger and more technologically adept generation. Everyone, regardless of age, are becoming more attracted, regardless of their financial status, in managing their own investment portfolios. That means they are looking for more information and involvement and not just an investment manager to manage.

These changes occur in a period of extreme economic and political turmoil. Offices that try to preserve their old methods are likely to be relegated by the people they were established to advise. Instead, they should adapt and adopt a more creative approach to investment management to develop the best value offering for UHNWIs.

While the scope and size of family offices is varied, it is important to focus on agility and streamlining rather than being experts in everything. A smaller team of advisors who can quickly introduce new technologies and bring on board external specialists when necessary can ultimately offer better service to clients. As these changes necessitate the blurring of lines between family offices and private banking the most successful companies will be those who maintain the loyalty and level of trust of a family office whilst remaining ahead of the curve in the sourcing of deals and embracing technology.

timebusinessnews.com/brexit-benefited-uk-financial-market-says-farnoush-farsiar/ is important to be able to draw on the old-fashioned, network-based, and reputation-based methods of deal sourcing. Online tools can be utilized to spot deals and opportunities. Wealth managers can use deal sourcing websites to discover deals and opportunities. They’re much simpler than the large, cumbersome banks who are stuck in large-firm bureaucracy. Dealmakers can access and evaluate huge numbers of deals at the same time this is a huge time and resource saving.

Wealthica is another online platform which has changed the way a family offices communicate with clients. Wealthica’s dashboard features automate the consolidation of investments from different sources. Customers can keep in touch with their investments. This is much more efficient than when wealth management provided only periodic updates about the condition and status of the money they had earned for their clients.

They are just tools that allow wealth managers to improve their efficiency and speed. The way they invest is most important. The best approach is to blend both the old and new. This means you should continue looking for deals in real estate, but you can also look into investments in other areas like food security or climate science. Impact investing has definitely arrived within the family office world – the UBS Global Family Office Report 2018 found that one third of family offices are engaged in impact investing and many expect to become more active in the near-future. There are certain problems with this area, such as difficulties in measuring impact or performing due diligence. However the next generation of UHNWIs and HNWIs will expect family office to be able identify and secure these investments. Plato Capital, which I created as an investment bank, is a company that focuses on entrepreneurs. Our connections and experience of the local region allows our clients to effectively manage risk and increase their capital returns.

Through blending the traditional with the modern, adjusting to the changing needs of the younger generation, and preparing to be risk-averse with their own structures and techniques, wealth managers of all types can be successful and relevant in challenging times.