Family Office Technology—Information Management

According to a Deloitte article published in Family Office Magazine, family offices that invest in advanced technology are better positioned to preserve long-term wealth. The article argues that realizing this benefit requires enterprise-wide alignment of people, processes, and data, with the right software at the core. Rising expectations from external parties and the families whose assets they manage are prompting many offices to reassess whether their technology investments are fit for purpose.

The article cites several triggers for such reviews. These include evolving tax and regulatory compliance requirements that demand robust processes, easier data access, and enhanced documentation. Owners and principals are also seeking more personalized reporting, including analysis of current and projected investments. Structural changes, such as a family enterprise moving into adjacent markets or broadening its investment portfolio, can also prompt a review of technology models.

On implementation, Deloitte advises family offices to start with their specific needs and goals, identifying use cases, reporting requirements, and data accessibility before evaluating products. Vendor management is presented as central to success, with dedicated points of contact and relationship managers providing continuity and faster issue resolution. On data, the article recommends thorough review and validation before migration, coordinated with the vendor through a conversion plan that supports testing. It also cautions on timelines: adoption may take eight to 12 weeks depending on complexity, with negotiations and due diligence extending that period, and implementation may take three to six months. Adequate resourcing is also recommended.

The article concludes that the main benefit of technology enablement is seamless integration of data across the enterprise. Connecting portfolio management with tax and fund accounting, performance analytics, and reporting benefits both the organization and the family's individual members. A centralized, interconnected document management system is described as strengthening client relationships and embedding data and cybersecurity across the technology suite.