Level up your operations with family office technology
Technology is crucial for family offices in order to automate and optimise data, which can help with transparency, better decision-making opportunities, and better data security. Not only can technology provide access to real-time data, but family offices can track overall wealth and assist with an outsourcing strategy to free up resources to focus on their growth. Here is a rundown of the types of technology family offices use to take their operations to the next level.
Software Updated on August 18, 2022

Family offices use a variety of software to help them, such as trading software, consolidating reporting systems, customer relationship management systems, and much more. Here are some of the most popular software types that family offices use:

Consolidated reporting systems

Family offices have to provide information and performance reporting to build trust with clients and establish transparency. Consolidated reporting systems can help automate data aggregation from different sources, prepare reports, and offer on-demand information, with efficient security and audit trail. By automating the entire reporting process, family offices can reduce operational risks, as well as the total cost of ownership for them.

Customer relationship management systems

A family office’s client structure can be quite complex and it can be difficult to keep tabs on the multiple relationships that span over generations. A Customer Relationship Management (CRM) system reduces friction when managing client relationships. It manages all information related to family members and stakeholders, as well as deal opportunities in one central location. Family offices can use CRM systems to manage their client relationships and pair them with client communication tools, such as client apps/portals to cater to the needs of the older and next generations.

Portfolio management systems

Many family offices need to manage large portfolios, including private equity, real estate, and hedge funds, which makes the investment management process prone to complications and complexities.

Family offices can benefit by adopting portfolio management systems to automate portfolio creation. With an advanced portfolio management system with powerful analytics and fully integrated reporting, family offices can gain full control of investments.

ESG Data software

Family offices need to consider risk data that take ESG factors into account, which can impact their financial performance. ESG data software is a solution that is used to comply with EHS (Environment, Health, and Safety), sustainability management, risk management, and regulatory compliance. ESG Data software offers family offices a quicker way of collecting, validating, aggregating, and managing data for corporate social responsibility and performance improvements across an organisation. Family offices can use ESG Data software to streamline data across their organisation and across portfolios for streamlined reporting.

Data aggregation systems

Data aggregation systems help to combine data from multiple sources in one place to create new insights and discover new patterns and relationships, without losing track of the source of data. Family offices require efficient data aggregation systems to combine their data, receive automated reporting, plan, and track their performance.

Governance systems

Governance systems or efficient governance software provides organisations with a structure to align their development strategy with their business strategy, by using a framework to track and measure performance with goals. Family offices can use governance systems to manage their organisation across multiple locations, along with tracking subsidiaries, legal persons, and shareholders.

Accounting systems

Family offices need to provide accurate and timely information on accounting and performance reports to establish transparency and build trust with their clients. However, this becomes difficult with diversified portfolios, traditional reporting, and stringent tax regulatory criteria. With accounting systems, family offices can consolidate all activities across tax and compliance reporting, net worth, and asset exposure.

Family offices can use accounting systems to automate data aggregation, as well as, data reconciliation, report preparation, and external integrations.

Crypto custody providers

Cryptocurrency custody solution providers are third-party providers that store and provide security for cryptocurrencies. Family offices can use crypto custody provider solutions to track digital assets and monitor crypto assets at scale.

family office technology

With the right kind of technology, family offices can streamline their operations and take their organisation to the next level.

How can family offices implement new technology?

Family offices need a structured plan to implement technology. They should start by identifying their needs, such as whether they want to improve information security or gain real-time data access or automated reporting. After assessing and identifying their needs, they should then create a suitable team with the right leader to launch this tech project. Learn more about implementing technology in our Simple guide here.

Technology is vital for family offices looking to thrive in the modern world. Being able to automate processes doesn’t just help to save resources, but it also gives the family office the opportunity to focus on their current goals, to enable overall organisational growth.

About the Authors

Raman Garg

Raman Garg

Research & Data Analyst

Raman Garg is a research and data analyst for Simple and works with the Product, Data and Content teams to help benchmark and streamline family office operations.

Connect with Raman Garg

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