Family Office Digital Transformation

Digital transformation is well underway in the financial services sector. FinTech startups began the digital transformation and disruption of traditional financial services offerings in the retail sector, followed by robo-advisors’ disruption of wealth management firms. Family offices, at the top of the pyramid of wealth services providers, are now beginning to feel pressures similar to what private banks and wealth managers felt a few years ago.

Family offices, however, have been slow to digitize due to factors related to scalability, the complexity of their offerings, and the uniqueness of each family. Growing pressure for digitization is coming from internal and external influences, and family offices need to begin their digital transformation or risk falling behind in terms of providing the innovative services their clients want, and of safeguarding their earnings.

In this flash report, we examine the latest trends in the digital family office and take a closer look at the technological innovations driving recent efforts by FinTechs to break into the space. We explore key features and capabilities that software providers can offer family offices, and we take an objective look at the benefits of digitization and at some of the possible drawbacks.