When Family Offices are looking to implement a software it is crucial to understand their business model and needs. The most required features are consolidated reporting, performance measurement, strategy monitoring and violation controls and non-bankable asset management including document management. In addition some Family Offices are also interested in features such as order routing, fee calculation, risk management and stress testing.
One of the most strategic ques-tion is where to host the data: on-premise (in-house) or cloud based (hosted solution). While in the past on-premise installations where standard practice, the fu-ture lies with private cloud hosting solutions, with the aim to reduce cost and increase cyber security. A private survey amongst UK based Single and Multi Family Offices showed that 75% of the participating Family Offices are considering a hosted platform solution because of bad experience with in-house servers where data burned (fire), were flooded (pipe burst) or in one case a person stole the server (fraud case); in another case the server and firewall with client data were hacked and the data owner was blackmailed. Comparing these issues with a FINMA compliant datacentre (private cloud hosting) with full data encryption plus local CRM data encryption in the Family Office premises, a private cloud setup comes strongly recommend.