1. Family office software & technology in 2023
The technology industry rebounded strongly in 2023 from the market-wide volatility of the past few years. Optimism in the sector rests on the ubiquity of connected technologies in our work and personal lives. Global demand and concern about supply chain disruption is leading firms to prioritise resilience across their operations. This is the backdrop for the rise of AI, which will almost certainly be the biggest technology intervention since the widespread adoption of the internet. AI and machine learning are already creating new efficiencies in design and analytics, but generative AI promises to reshape professional work.
The family office software and technology sector is a subset of the broader tech industry and tracks a similar trajectory. Nearly all of the service providers that we surveyed reported strong growth in sales and many expanded their capacity by bringing on new team members in 2023. Similarly, around 80% already include AI functionality or plan to deploy it in their products and services. The top demands of family office software and technology buyers are broader integrations to increase functionality, an expanded feature set, and extended customisation. All of these enhancements should benefit from the successful implementation of AI by service providers.
Software needs to keep pace as family offices adapt to a difficult macroeconomic environment. Increased market volatility, rising interest rates, and geopolitical tension promise to continue, at least in the near term. Families re-evaluating their portfolios and evolving their investment strategies recognise that operational excellence is the foundation of an investment team’s performance. Technology is the foundation for top-tier operations.
“Families have high expectations, and while certain aspects of serving a family cannot be solved through technology, many can, and will be.” -Paul Lussow, Giving Place
Simple’s fourth annual Family Office Software and Technology Review continues our mission of increasing transparency in all aspects of family office operations and management. Simple is committed to helping family offices understand their bespoke needs and bringing clarity to the service provider ecosystem. The largest multi-family office and a small single family office share the same end goal of optimising operations to enable focus on making future-oriented decisions based on the most accurate information. A curated tech stack is essential to provide this edge today and into the future.
This review is based on a survey (n=35) of family office software and technology service providers that shared deep insight into their operations, customer base, and the industry at large. Over the past two years, we aggregated longitudinal data from mini-surveys (n=1439) of Simple platform users about their technology use. Our work is also informed by ongoing conversations and interviews with family offices and service providers.
About the Authors
David Struthers
Research LeadDavid Struthers is the research and technical report writer at Simple.
Connect with David Struthers
Francois Botha
Founder & CEOFrancois believes that the next generation of family leaders need new, simple tools and trusted experts with a fresh outlook.
Connect with Francois Botha2. Today’s family offices
At Simple, we organise our thinking about the varieties of family offices into archetypes. These abstractions help distil typical use cases for software and technology. For our family office readership, comparing your interests and operations with the archetypes should help highlight a specific set of technological needs. Are you focused on active trading? Then a trading platform is one of your top priorities. A commercial multi-family office will prioritise strong CRM and well-designed customer portals to provide clients the highest level of service.
“Thriving in a competitive environment requires firms to deliver an intuitive and frictionless client experience, encompassing aspects ranging from portfolio monitoring and asset allocation to personalised insights and investment ideas.” –Tomas Petky, PetakSys
Family office archetypes
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DownloadFamily offices of all configurations and the landscape of UHNWIs are adapting to meet the demands of a changing world. Simple asked its network of software and technology service providers to identify changes within family offices from their perspective as a trusted partner.
Changes within family offices
Today’s family offices are increasingly adopting technology in what one service provider characterised as a “rush to innovate.” Many of the reasons for reticence in the face of new technology–cost, security concerns, and comfort with legacy systems–have been resolved through increased security and younger generations taking the helm. As existing family offices are building out their technological capabilities, possibly with the goal of bringing more core family office operations in-house, there is a surge in upstart family offices with a digital-first mindset. Some established family offices are also joining with other families to form new multi-family offices to professionalise their operations and governance. There is a late-mover advantage for family offices that have taken a cautious approach to technology up to this point. There are more solutions on the market today, many that offer demos before committing. This advantage is balanced by the increased burden of evaluating more products with functions that unevenly overlap.
“Technology enables both the hard and soft aspects of the family office.” –Aaron Hatton, Copia Wealth Studios
Below are the top ten changes in family offices identified by the software and technology service providers we surveyed.
Changes to family office organisation and operations
Technology Integration
Family offices increasingly embrace technology to enhance their efficiency and effectiveness in wealth management and operations. This includes onboarding digital platforms for portfolio management, data analysis, and reporting. Much of this digitalisation is run through integrated cloud-based technology solutions. An important characteristic of this trend is that technology is standardising, which avoids the costs of proprietary systems. There is also increased interest in off-the-shelf enterprise software, especially in large SFOs and MFOs.
The primary focus of technology is to integrate functions to optimise operations and decision-making. Information hubs serve as the family’s centre of gravity for all types of protected and private information, but deliver easy and protected access from all devices.
“Many family offices want to automate as much as possible their operational setup and increase their reporting capabilities.” – Pierre Dupont, WIZE by TeamWork
“Broader adoption of software and technology as family offices are becoming more institutional.” – Tomas Engel, Swimbird
“As more families diversify their portfolios and look to include different asset classes, having a single dashboard to manage everything from holding companies to trusts becomes not just a luxury, but a necessity.”–Jon Ricci, MyFO
Next Gen and Succession Planning
As younger generations become more involved in family office affairs, there is an emphasis on impact investing, sustainability, and socially responsible wealth management. This generational shift is reshaping investment strategies and priorities. There is also attention to educating the next generation of family members about wealth management and succession planning. Family offices are investing in programs to prepare heirs for their future roles.
“The need for a more holistic wealth management approach will see family offices align with the next generation who is looking for quality of life beyond managing their wealth.” – Jacco de Bruijn, Nines
“It’s a new generation moment. Leadership is changing.”– Santiago Reyna Herrero, Atalaya
Professionalisation, Transparency, and Governance
There is a greater focus on transparency and governance within family offices. Many establish formal governance structures, conduct regular audits, and implement best practices to ensure transparency and compliance. Tomas Hurcik at ORCA observed that professionalisation brings “more specific roles within the family office, making it easier to identify the right people to talk to.” Another noted the interconnection between governance and succession planning: “There is a growing trend towards increased transparency and governance. Families believe that in order to have an efficient succession plan, transparency and governance are fundamental.”
Outsourcing Services
As some family offices deploy technology to build out their internal capacity, others are outsourcing functions such as investment management, accounting, and legal services to specialised third-party providers. Other families make the decision to join a multi-family office. These approaches allow them to tap into expertise and may reduce costs.
“Family offices are seeing the benefits of outsourcing many functions to service providers. Outsourcing many of the administrative functions allows them to benefit from the expertise of these providers while controlling their costs and facilitating their growth.” – Tom Nicholson, STP Investment Services
One software provider connected recent economic volatility to the drive to optimise operations within family offices:
“Everything is no longer moving to the upper right, and family offices cannot afford to be even slightly constrained by operational inefficiencies.” – Pete Clancey, Canoe Intelligence
Customisation
Customisation from top to bottom. Users of software and technology demand tools that fit their needs, tools that work for them. Multi-family offices are tailoring their services to meet the specific needs and preferences of individual families. This includes offering bespoke investment strategies and personalised wealth management solutions.
This drive to customisation appeals to families building out their tech stack:
“Our client onboarding process is now fully available as an off-the-shelf product that allows customisations to make it look like your own software.” – Christian Terpe, Fincite
Changes to family office investing, activities, and outlooks
Globalisation
Family offices continue to invest and operate globally. This includes diversified portfolios across international markets and investing in opportunities in emerging economies. Software needs to keep pace with these activities, in addition to meeting the requirements of multiple legal jurisdictions and data storage regimes.
“More internationalisation!”– Tomas Hurcik, ORCA
Alternative Investments
The analytic requirements of family offices are in line with increases in allocations to private equity and investment funds. Software has to keep pace with an increasing number of asset classes, custodians, and currencies held in different legal entities such as trusts, LLCs, foundations, and personal accounts:
“This complexity makes creating a complete picture of how wealth is invested difficult and time-consuming to produce. It can lead to unintended concentration risks, unnecessary costs, and ill-informed decisions.”– Hugh Porter, Landy Tech
ESG and Impact Investing
Family office interest in ESG and impact investing is increasing as they seek not only financial returns, but also social and environmental good. This trend aligns with the long-standing values and philanthropic priorities of many families. Both investing outlooks require specific tools to measure and aggregate data.
Families are “adapting investment strategies to align with environmental, social, and governance (ESG) principles as sustainable investing gains prominence.” – Chirag Nanavati, Asset Vantage
Adaptation to external factors
Evolving Regulatory Environment
Changing regulatory requirements, especially in the financial sector, are influencing the way family offices operate. Compliance with these regulations is a key consideration.
“Changing regulatory requirements, especially in the financial sector, are influencing the way family offices operate. Compliance with these regulations is becoming a key consideration.” – Christian Jedlicka, Etops Group AG
Data Security
Given the increasing reliance on technology, family offices are prioritising data security and privacy. Robust digital security measures are needed to safeguard sensitive information.
Clients expand service providers to “safeguard their sensitive financial information with state-of-the-art security protocols, encryption, and compliance with relevant data protection regulations.” – Chirag Nanavati, Asset Vantage
In summary, family offices are adapting to changing times by embracing technology, incorporating ESG considerations, enhancing governance, and responding to their beneficial owners’ evolving needs and values. These changes are aimed at ensuring the long-term sustainability and success of family wealth management. Family office software and technology needs to align with sustainable investment strategies, security requirements, and provide real-time data aggregation to enable decision-making.
3. Key technological needs of family offices
Family offices are “embracing the digital transformation.” – Max Wattel, Elysys Financial Systems
The changes within family offices discussed above may turn their technology needs into a moving target without clear planning to future-proof tech stacks. Family office software and technology is designed to meet demand from three distinct market segments. Identifying your family office’s key needs is a good place to start evaluating your current and future tech stack.
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DownloadThe software and technology value chain for these three market segments comes across three core functional stages: aggregation, management/analysis, and reporting. These stages comprise the core of the family office software and technology industry.
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DownloadSoftware for family offices targets one or more of the core functions. In addition to having a single dashboard, some families may be looking for software solutions that go beyond aggregation. Other family offices may prefer valuation tools, AI, and digital document storage to make end-to-end management more efficient.
Technology plays a pivotal role in modernising operations and meeting the next generation’s needs. Software firms continue to add functionality to their products to meet the demands of their customers. Understanding your family office’s specific use case and the core functionality of family office software is the best starting point for evaluating your tech stack.
4. The state of family office software and technology
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DownloadFor each of the past three years our survey of family office software firms reported high levels of growth in the industry. Service providers also reported strong increases in their year-over-year revenue. The firms responded in qualitative and quantitative terms from “increasing,” “growing,” and “our revenue grows constantly” to “we have grown over 300% year over year,” “our revenue has doubled year-over-year,” and “increased by more than 30%.” There is a justifiable reason for optimism in the industry.
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DownloadStrong growth in the family office software industry and the uptick in digitalisation of family offices notwithstanding, many of the Simple platform users report not yet adopting these key technologies. This indicates that there is considerable room for continued growth in this sector.
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DownloadOur discussions with family offices indicate that the majority that do not use family office-specific software primarily use Excel or other off-the-shelf solutions and have low annual costs. This is a clear market opportunity for family office software providers. For late-mover family offices, this is a time for measured reflection about your specific needs with more options for tailored solutions than ever before.
Updates and changes
Service providers are proving nimble as they adapt to meet the needs of a changing and growing market.
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DownloadSoftware firms gave detailed responses when asked to fill out this picture of change. Many firms expanded their service offerings and updated existing platforms to increase their functionality. Many firms also brought on new staff to meet the needs of their clients, some through mergers or acquisitions.
“Expanded the range of portfolio construction tools and investment committee narrative support for family offices and wealth management firms. These tools build on the success our underlying models and signals have seen with hedge funds and asset managers.”– Niall Boland, ClearMacro
Client demands
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DownloadThe family office market is constantly evolving and clients expect exceptional support. Software and technology service providers expanded on their responses with keen observations of the changing market landscape. Integrations are the top client demand and this functionality is in clear focus to the service providers. Family office clients demand a seamless experience, making integrations between products one of their top priorities to enhance operational efficiency.
A consideration for single family offices looking for a dashboard providing a holistic view of their wealth is the ability of their software to seamlessly integrate with custodians, alternative investment aggregators for private equity and real estate, and market data service providers. While a commercial multi-family office might prioritise CRM on a portfolio management platform.
Software companies vary in their ability to tailor their products and services. Some have the resources to adapt to meet a family office’s specific operational needs and business models. While other firms view customisation through a UX lens: “Customisation really means ‘personalisation’ from our standpoint.” – Paul Lussow, Giving Place
Of course, the software must be easy to use without extensive training of staff. We’ve learned that clients demand user-friendly software that does not require significant retraining for staff. Family offices also demand seamless access to their financial data and reports across devices and location.
Feature updates
When we asked the service providers to detail the features they updated this year, they aligned with what they identified as client demands.
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DownloadSpecific features added include:
“This year, we have introduced a new mobile app with cross-platform support and a focus on functionality suited for the mobile form factor.”-Klaus Lauenborg Breitenstein, Assure Wealth
The ability of software to integrate data from various sources relies on APIs that need constant updates to ensure interoperability. In a nod to the realities of software development cycles, one firm noted, “we are continuously developing the tool to ensure it operates swiftly, efficiently, and effectively, even as the number of users grows, and it seamlessly retrieves data from banks and technology partners.”–Alicja Szabłowska, WealthArc
Firms also provided concrete examples of AI integration:
“The launch of Document AI, which is our first major foray into the AI space.” – Michael Melia, Masttro
Other capabilities added or improved this year are improvements to dashboards with embedded analytics and reporting capabilities, foreign currency management, new forms of reporting (e.g., risk and liquidity), increased security, stakeholder mapping, and new valuation tools.
Onboarding
Streamlining onboarding for new clients has long been a selling point for service providers. Across the industry, more or all the steps for identity verification have moved online to reduce time and paperwork. Some software firms are now automating document verification, background checks, and compliance checks to speed onboarding even more. These efficiency gains are being paired with enhanced security for confidence and client-facing progress views for transparency.
Some software firms concentrate resources on personal onboarding support:
“Our process now involves a step with explicit ‘customer success’ definitions.”–Niall Boland, ClearMacro
While other firms focus on easing onboarding to the point that it does not require assistance:
“We’ve streamlined on-boarding with more self-service guides. We also now offer a free trial for companies evaluating our product.”– Ben Taylor, SoftLedger
While other firms provide more of a hybrid onboarding experience:
“We have added more features to enable clients to self-onboard and manage/control their data themselves. We have invested heavily in user design, intuitive drag-and-drop, and point-and-click controls to optimise the client user experience. Of course, new clients can still rely on our in-house onboarding team to do the work for them if they choose.”– Craig Pearson, Private Wealth Systems
Focus on AI
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DownloadOver three-quarters of respondents indicated their product currently has AI functionality or they plan to deploy it in the future. Pulling apart the firm’s detailed responses reveals considerable nuance to this picture.
Some firms have a gradual approach:
“We don’t currently incorporate AI into our platform’s infrastructure. With that being said, it is on our roadmap to include in the next 12-24 months. We will focus on the use of generative AI to help us better predict and respond to client needs and requests.”– Tom Nicholson, STP Investment Services
Another firm maintains focus on their product’s core functionality:
AI is “on the roadmap for the future. Our view is always: what problem does AI solve? We’re not using AI as a solution looking for a problem.”– Paul Lussow, Giving Place
While other firms have already deployed AI to streamline portfolio management, risk assessment, and data analysis, or in aggregation and accounting:
“We use AI for document reading, integration to banks and to manage such data.”– Tomas Engel, Swimbird
“One notable addition is our advanced AI tool that reviews estate documents, summarises them for you, and identifies key and missing clauses while suggesting best practices.”– Jon Ricci, MyFO
Current and planned AI-driven functions range from automating simple, yet time-consuming tasks like extracting data to complex operations analysing portfolios across asset classes. Family offices can also use off-the-shelf and publically available AI services such as OpenAI, Chatpot, and the tools embedded within Microsoft and Google products to summarise reports, create first drafts of documents, and create efficiencies in other areas.
Focus on ESG
We asked firms to elaborate on their integration of environmental, social, and governance (ESG) frameworks into their products. ESG analysis is a data-driven investment approach. Software is the ideal tool for efficient and effective adherence through data integration, scoring, evaluation, and reporting. ESG software packages assess potential or current investments along user-selectable criteria and then generate scores on the sustainability of their portfolios. Approaches to ESG features vary. Some ESG-specific software places analysis as its core purpose. This is another area that AI is impacting software development.
Other service providers incorporate ESG into their products with broader functionality, some through third-party integrations:
“To enhance our ESG capabilities, we collaborate with a specialised third-party provider with expertise in sustainability approaches and analysis. We integrate these external insights seamlessly into our ecosystem, enriching the depth and breadth of our sustainability information.”– Christian Jedlicka, Etops Group
Some firms are expanding their offerings in ESG and this investment approach becomes more mainstream.
“As a step in this direction, we are in the exploratory phase of building a data feed in partnership with Morningstar’s Sustainalytics. This integration would allow users to benchmark their portfolios against relevant ESG metrics, aiding them in aligning their investments with their sustainability goals and ensuring compliance with evolving regulations.”– Jon Ricci, MyFO
ESG integration varies considerably among software service providers and this is a key distinction for family offices evaluating their current tech stack and new potential new providers.
Focus on security
Firms take a comprehensive approach to digital security to safeguard clients’ sensitive financial data.
Core components of security include:
- Encryption
- Multi-factor authentication (MFA)
- Firewalls
- Backups
- Employee and vendor vetting and training
- Role-based permission
- Third-party vendor vetting
It is clear that all service providers view security as the biggest risk to their businesses. A data breach or fraud would cause immense damage to clients and reputational harm to the firm. Software firms are fully aware of the trust it takes to provide services to the family office software and technology market. Working with personal and financial data requires a comprehensive and multi-layered approach to digital security.
“We employ multi-factor authentication, intrusion detection and remediation, daily vulnerability scanning, regular penetration testing, physical site safeguards, and security-conscious personnel. Security extends from the outer physical site to the inner system infrastructure, application, and customer data.”– Dan Gregerson, Summitas
5. Addressing future challenges
Family offices will need to adapt to changing macroeconomic and political conditions as they have done so in the past. At this point in time, this adaptation will come as family offices are going through an intergenerational transition. As a new generation takes the helm their priorities and needs will shape the path families chart into the future.
One way to approach volatility is to continue to diversify assets effectively. Family offices have long prioritised a wide range of asset classes with the twinned wealth creation and preservation strategies. A nimble approach increases the burden on investment teams at a time when operational costs are growing and there are staff shortages in some regions. Speedy and efficient adaptation is of paramount importance for family offices going forward to keep up with the rapidly evolving financial landscape.
Diversifying into new asset classes increases data management and reporting requirements. Investments span more complex asset classes split across multiple fund and asset managers, banks, custodians, and brokers. Public and private markets, private equity, real estate and direct investments require specific accounting and liquidity management. Further, diversification is reaching beyond asset classes to span sectors and geographies. Family offices will need forward-looking asset allocation processes to manage liquidity. A consolidated, on-demand view of portfolio performance and visually simplifying such a complex investment picture is essential to enabling effective monitoring and informed decision-making.
Family offices that can adapt to these challenges by leveraging advanced family office software, adopting sustainable investment practices, and staying informed about industry trends will be better positioned for success in the evolving financial landscape. However, there are potential pitfalls to consider. The first is tech lag, a slow response to technological advances means getting left behind as innovative technology surges ahead. The second is underestimating new tech by being caught off guard by how advanced and impactful emerging tech solutions and automation can be. It is helpful to view this through a change management perspective as families go through their digital transformation.
The challenge for many family offices is selecting the right technology providers to support their long-term growth. Onboarding new systems is costly and time-consuming. New firms are entering the market at the same time that incumbents are adding features at the same time that the full impact of AI is still unknown. Technology buyers will be best served by first identifying their needs and then seeking out service providers that can meet them.
To successfully navigate the coming years, family offices will need to remain agile, adaptable, and proactive in their approach to wealth management, governance, and technology adoption. Additionally, seeking expert advice and staying informed about industry trends will be essential for addressing these complex issues.
6. Acknowledgements
This review was made possible because of expert input. Simple wishes to thank the following service providers for taking the time to share their knowledge and expertise in technology and software.
- Abbove
- Altoo
- Asora
- Asset Vantage
- Assure Wealth
- Atalaya
- Canoe Intelligence
- ClearMacro
- Copia Wealth Studios
- Croesus
- Elysys
- Etops
- eXeer by Point Group
- Fincite
- Giving Place
- IQ EQ
- Landytech
- Masttro
- MyFO
- Nines Living
- Openfire
- Orca
- PetakSys
- Private Wealth Systems
- Softledger
- STP Investments Services
- Summitas
- Suisse Tech Partners
- Swimbird
- Trustworthy
- WealthArc
- Wize
Additionally, we would also like to thank the following providers for their commitment to improving the family office software and technology industry:
Addepar
Affinity
AgilLink
Aleta
Apliqo
Arch
Bill.com
Black Diamond Wealth Platform
Canopy
Carta
Centtrip
Ethic
Eton Solutions
FundCount
Global Asset+ by Lombard Odier
Hemonto
KeeSystem
Ledgex
Nasdaq Asset Owner Solutions
Northern Trust Family Office Technology
PandaConnect
Performativ
SEI – Archway Platform℠
Sharpfin
SS&C Family Office Services
Way2B1
