Navigating the evolution of family offices

More than private banking

• Family offices are now seeking a strategic discussion partner in their banking institutions.
• Historical expertise is valued for providing deeper insights, comprehensive wealth management, and best-practice perspectives within the private wealth ecosystem.
• Singapore’s DBS Bank sets an exemplary precedent with its in-house multi-family office, offering full compliance and governance services. However, a pertinent question arises about the independence of advice when linked to a bank.

 Globalisation comes standard

• The next generation emphasises a global outlook, reducing attachment to single jurisdictions in family office structures.
• There’s an amplified need for fully globalised banking solutions.
• Banks with a worldwide presence, like JP Morgan Chase or UBS, hold a unique advantage, outpacing smaller, niche-focused banks. Despite recent events like the Credit Suisse incident, established family office banks retain trustworthiness in managing intricate international financial needs.

 Technology is inherent

• The professionalisation of family offices is driving increased integration with multiple service providers.
• Banks embracing emerging technologies are poised for success.
• SEB, a leading Nordic bank, exemplifies this approach through its digital-first strategy and the innovative SEB-X lab. This has facilitated seamless AI integration in data analytics and service capabilities, culminating in an open banking platform for clients to manage their finances across multiple banks seamlessly.

 Transparency breeds trust

• The ‘Google-generation’ values transparency in pricing and contracts.
• Recent revelations regarding the worthlessness of major carbon offset projects highlight the skepticism the next generation holds towards institutions.
• A values-oriented approach, exemplified by Swiss private bank Lombard Odier, is recognised and rewarded. Their B Corp Certification and commitment to aligning customer interests with actions mark sustainability as the “largest investment opportunity in history”.

 Focused philanthropy

• Philanthropy is evolving, demanding more effective measurability.
• Banks managing philanthropic strategies must go beyond replication and provide personalised advice.
• The next generation displays a targeted approach in their philanthropic endeavours, emphasising the importance of aligning current and future generations’ interests.