Systems security and finding a software solution that integrates financial data across multiple functions rank as family offices’ top technology concerns, according to research from the Family Office Exchange (FOX), a network of wealth owners and their advisers.
The study, titled "2013 FOX Family Office Benchmarking: Technology in the Family Office," surveyed single- and multi-family offices on their technology practices, including software selection, security, budgeting, staffing and use of cloud computing.
Survey participants named security as one of their top two technology challenges. Their sensitivity to security applies to both the data itself and communication of the data, with most participants (71 per cent) opting to not send financial information to clients’ mobile devices. In spite of these concerns, 56 per cent of respondents expressed confidence in their security practices.
The survey also found that the desire for a reporting solution that aggregates data across such key functions as investments, tax, accounting, and philanthropy remains a key challenge for family offices. Most (88 per cent) still rely on Excel to serve as the bridge between software packages.
"Integration remains the Holy Grail for family offices," says FOX senior consultant Jane Flanagan. "The need for a single software solution that can aggregate data across investments, tax, accounting and the family foundation is a challenge that we’ve heard consistently in our benchmarking over the years."
"This year’s study marks the emergence of data security as a top technology priority for family offices," she adds.
