Increased competition, technological changes, and an increasing desire for niche investment opportunities are changing the way that family offices work with advisors. Whether they go by the moniker of financial advisers, wealth managers. private banks or multi-family offices – these are the firms entrusted with managing the outsourced components of the family investments.
Oftentimes, there are several wealth managers or advice firms used by a family for specific reasons. Of course, their investment competencies are a key consideration for the family, yet there are a number of emerging factors of increasing importance. In Boston Consulting Group’s recently published whitepaper titled “At the Crossroads – Wealth Management in North America”, they highlight two of the most pressing issues being access to a world-class digital solution and a customised investment experience.
According to the report, wealth managers targeting the UHNW baby boomer generation are going to be left behind in the 2020s and those that target just Gen X will be left behind by 2030. This also means old-school ties will not last past the current client. If the firm is putting the engagement of the kids and the grandkids in a too-hard basket, the relationship will end.