Driving Operational Success

Digitally mature firms in the wealth management space reported an increase of 13% in productivity, 8% in AUM, and 8% increase in revenue (Liferay: State of Digital Transformation). Based on our experience and research, we believe that not only will this opportunity continue to grow, but we are convinced that the opportunity for Family Offices and technology is even greater due to their deeper, integrated service models.

In The Future of the Family and the Family Office, Family Office Exchange (FOX) notes several responses for family offices to support the changes that are in progress. These include a more holistic focus, increased transparency, integrated approaches and solutions that leverage technology, and increased digital and analytical tools inside an environment that is more collaborative overall.

With these trends and changes in the industry, we are seeing an increase in remote work and hybrid insource/outsourced service models become more common. The opportunity and need to create and preserve value with technology rapidly accelerates. Simple and complex tools enable teams to easily collaborate and share information. Sophisticated systems provide integration with the external service providers and allow for central governance, financial, and compliance activities that provide greater alignment with family values, more effective capital deployment, and improved risk mitigation.

Understanding your organization and its digital maturity is a useful exercise to build on your operational success.

Client-centricity and Digital CX

Deloitte established that firms with a client-centric approach are 60% more profitable than their product or service-oriented counterparts (Deloitte: Digitalisierung). While single family offices operate for profit differently than RIAs, the benefits from a 360-degree view of your client are still realized in service delivery through the care of the family, their satisfaction, and overall operational efficiency.

Central to a client-centric approach is establishing and evolving your CX (Client Experience) to meet and exceed your client's expectations. The digital CX is not just a value-add or reserved for VFOs (Virtual Family Offices), now a digital CX is expected by almost all clients. Capitalizing on the benefits of a client-centric strategy requires a disciplined approach to your client experience, across all mediums.

"Digital Natives" are Growing in Number and Expect a Digital Experience

Did You Know:

• 90% of those classified as UHNW (Ultra-High Net Worth: $30m+) have their money because they are wholly or partially self-made (Wealth-X: World Ultra Wealth Approach).

  • Newer wealth creators are experienced with the role technology plays in efficiency and managing opportunities.

• $17T+ is expected to be transferred by 2030 by VHNW (Very-High Net Worth: $5m+) individuals to younger generations (Wealth-X: Preservation and Succession: Family Wealth Transfer 2021).

• Across all wealth brackets, 90% of heirs change advisors from one generation to the next (Deloitte Research).

• While 83% of investors prefer to work with human advisors, 95% of investors expect advisors to use the latest technology (Edward Jones).

• 89% of clients now prefer using mobile apps to communicate with advisors (ThoughtLab).

• 50% of the talent available to your organization is "digitally native," and that is expected to exceed 75% by 2025 (Ernst & Young and Accenture).

• 36% of employees consider leaving, and 14% do leave, due to poor digital experience (Lakeside Software: Digital Workplace Productivity Report 2022).

• 61% of employees say digital experience is important or very important when working with a future employer (Lakeside Software: Digital Workplace Productivity Report 2022).

"Digital native" generations receive digitally driven or supported experiences in almost every aspect of their lives, from the moment they wake up until they go to bed. The opportunity to attract and retain rising generations and, if applicable, new clients is essential to multi-generational activities in your family office as one works with more "digital natives."

Additionally, the landscape has changed from when talent just prioritized the needs and well-being of family principles and did what was told in return for a paycheck. Now both young and experienced professionals are evaluating not just the compensation, but also the work experience provided by their employers (FOX: The 3Ts: Critical Forces Disrupting our Future). Given the importance of a good Digital Employee Experience (DEX) to employee retention, this will be an important element to monitor and improve upon. Especially as younger "digital natives" continue to become a larger part of the workforce and your team.

Our Mission and Conviction

We believe the future is bright for those in the family office industry. We believe that families and those in the family office space are positioned in a way unlike any other industry to positively impact on the world through their experience and capital - of all forms.

We share in this commitment of making the world a better place by being a value-driven organization. To us that means that we that we hold our core values central, we bring together people with diverse backgrounds, and utilize respected ESG frameworks in our own operations to provide a platform for the Private Capital Ecosystem.