The Digital Transformation of Family Offices
Concerned about the state of your Family Office? Maybe it’s time to rethink how you engage with technology.
Technology acts as a force multiplier for businesses. The correct application can create huge returns and give you a leg up on the competition. Sadly, high-net-worth individuals sometimes fail to apply similar thinking to their Family Offices.
At its core, a Family Office is a professional organization. Just like any business, it demands attention. Consider this: the average employee spends almost two hours a day locating information. Apply this number to your Family Office and you’ll see how much you may be paying in terms of your precious leisure and family time, not to mention the hourly costs of hiring outside advisors.
Most families rely on a team of professionals. Lawyers, accountants, analysts and advisors each make unique and often vital contributions to the Family Office.
However, this expertise can be pricey. When you consider what these experts bill, information gathering becomes a painful expenditure.
What should you do?
Start thinking about your Family Office as a Technology Company.
Finding effective ways to apply technology in your Family Office can reduce your reliance on advisors. Not only will you improve your operations, but you’ll save money in the process.
How can you find the right technology solution?
Run your Family Office like a business: Expect a clear set of deliverables, and set expectations accordingly. Any new technology suite you implement should meet a clear and defined need--with measurable gains.
Ask specific questions: When assessing new technology, the questions you ask are important. Any provider worthy of your time and energy should be able to answer, at minimum, the following:
Do you have an API layer?
How do you handle security?
How is data encrypted in transit?
Where is the data stored?
Do you embody a user-first design philosophy?
Watch the trends: The best businesses are always paying attention to what is coming next. Ensure you’re building your ecosystem with an eye to the future.
Every Family Office is now a technology company. Run yours like a business: you’ll save time, generate more significant returns, and keep up with the competition.