Common family office technology challenges and how to resolve them

When compared with multi-client organisations, family offices often face more challenges when selecting and implementing technology. And when it comes to technology to leverage their processes and operations, they need to navigate issues such as systems’ complexity, consistency or cost.
family office technology
Software Updated on October 21, 2022

The challenges with selecting technology are even more substantial for single family offices that do not have shareholders or clients to report to. While financial institutions and fund managers usually have specific departmental needs, and strict, clearly defined governance requirements, single family offices need to rely on their own frameworks and internal regulation. This can affect their response to – and possible avoidance of – technological adoption and improving investment infrastructure which can lead to an inability to keep up with the advancement in wealth management space.

Through various conversations with family office software and technology advisors, we compiled a list of top issues and challenges family offices run into and how to overcome them.

Don’t rush the selection process

Technology solution selections can be complex and time- and resource-intensive. When going through this, make sure you don’t rush it and go for the option solely based on a shorter selection process. If you only look at the big cornerstones of the solution, this can lead to big disappointments or project termination. This is where things can get ugly and expensive.

To overcome this challenge, try not to take shortcuts or try to bypass the request for proposal process. Instead, time and resources should be invested in in-depth solution requirement analysis.

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