May 29, 2024

The Family Office Boosts Digitization of Regional Wealth Management

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Recognizing the needs of the regional market, The Family Office is following a multi-faceted strategy. Image Courtesy-The Family Office

A leading Bahrain-based wealth manager with offices in Dubai and Riyadh, The Family Office has commenced implementing numerous innovative digital initiatives to advance efforts in engaging with an increasing base of digital-savvy clients. The revolutionary measures enable greater efficiency and personalization to meet client needs for wealth management and wealth preservation in the Middle East region.

Industry sources added that the after-effects of the global pandemic combined with geopolitical instability and rising interest rates are leading investors worldwide to become more defensive. A report by Capgemini on world wealth indicated that priorities are growing towards wealth preservation1, mitigating inflation and stable returns over speculative growth.

While declining globally, the number of high net worth individuals (HNWI) in the Middle East increased by 2.8% in 2021-2022.1 Likewise, a study by Ernst & Young (EY) displayed a record 65% of Middle Eastern clients seeking support in financial planning services,2 thereby presenting a need for effective wealth management in the region.

Owning to the surge in demand for financial advice calls for wealth management firms to offer more personalized services while serving a broader range of clients at reasonable fees without incurring additional costs. 

Industry sources further added that consequently, The Family Office adopts a hybrid approach (face-to-face plus virtual) providing clients greater access to financial advisors with improved efficiency. As clients are commonly accustomed to interacting digitally, roughly two-thirds of wealth management executives have been prioritizing digital initiatives.1

Encouraging the use of digital platforms can also improve access to wealth management for the under-served “affluent” segment ($250,000 to $1 million), who represent the future HNWI clients, but are too small for traditional wealth management firms.

As per the Industry sources recognizing the needs of the regional market, The Family Office is following a multi-faceted strategy. The firm’s investment philosophy adheres to time-honored fundamentals (e.g. diversification by asset class and geography) and agile investment selection in private markets that usually outperform traditional 60% bonds, and 40% stock portfolio strategies with less volatility than public markets3.

The Family Office creates a personalized financial plan based on the unique circumstances, objectives, and risk profile of each client, and a suitable investment strategy. The plan and the strategy are also updated for changes in the macro environment and the client’s own life events.

Furthermore, to address the needs of the next generation of wealth management clients, The Family Office has launched its “Invest Now, Pay Later” program, which allows smaller investors to access opportunities (e.g. private markets) that are normally restricted to institutional investors and ultra-HNWI. Through the program, investors can fund just 25% of their portfolio upfront and pay the remainder monthly over up to five years (more information can be found here).

The Family Office also provides investors of all sizes user-friendly access to its award-winning digital wealth platform with a wide range of informative and educational resources such as articles, whitepapers, webinars, and analytical tools that can be used independently to improve their understanding of the market.

Abdulmohsin Al Omran, founder and CEO of The Family Office

According to Abdulmohsin Al Omran, founder and CEO of The Family Office, the digital platform aims to “democratize exclusive global private market opportunities and access to advanced analytics, complementing the traditional services.”

Moreover, the firm’s hybrid approach enables it to unlock synergies between both digital and traditional wealth management serving all generations and guiding them in stable and turbulent times alike.

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