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Making Tech Investments That Benefit Clients

Allocating a client’s assets into the tech sector is often part of the family office investment strategy. But that’s not the only way your office can invest in technology that benefits clients. You can also do so by upgrading legacy systems with new technology.

Top Four Reasons to Invest in New Technology

1. Increase efficiency and accuracy

Increasing operational efficiency is reported as the top challenge facing family offices today. When family offices use spreadsheets, various communication tools, a variety of reporting mechanisms and a separate CRM system, all these disparate measures create data silos. Not only can siloed data reduce accuracy and slow down communications, it can prevent your office from recognizing broader trends, create friction in the collaboration between departments, increase storage needs and limit reporting options.

Using updated technology solutions to remove data silos can streamline operations, improving efficiency enough to make a noticeable difference in your bottom line.  

2. Facilitate better client access 

tech investment

Family offices should be devoted to ensuring that all members of the family, regardless of generation, can easily access and understand information about their portfolio and planning. Because each member might have their own idea of what “easy access” and “understandable” means, you need to invest in technology that gives you a flexible flexibility when presenting data so you can meet a variety of needs and expectations.  

Depending on the family you serve, your office may need to explore adding a client portal, accessible through a secure app. With this option, family members can customize their user experience, enhance their understanding of the data you report and can access information whenever they need to. 

3. Strengthen security

A recent survey from Deloitte shows that 38 percent of European family offices have been hacked. It makes sense that family offices are a popular target for cyber attacks, and combating that will be difficult with a legacy software system. More than half of large family offices anticipate suffering catastrophic impacts after a cyber attack. In cyber crimes, a strong offense is the best defense, and legacy technology systems often have well-known vulnerabilities hackers can easily exploit. 

4. Improve risk mitigation

One of the biggest reasons that ultra high net worth clients rely on family offices is that they have different risk factors requiring specialized investment strategies. Technology can give a new way to analyze portfolios and measure and assess risks. Many tech solutions also give family offices a better way to complete due diligence on emerging asset classes

It may seem less expensive to stick with a legacy technology system, but when you consider the benefits listed above as well as the potential to gain automation and aggregated data to help your office save time and increase accuracy, it becomes clear that upgrading technology is a critical strategy for a family office to employ. 


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