This news service talks to the MD of SEI Family Office Services about the work it does in the family offices sector and the challenges and trends it sees.

The COVID-19 outbreak, the associated lockdowns and state measures to contain the pandemic have hit many businesses and caused firms to change how they do business. And family offices are no exception to this. How have organizations serving family offices had to adapt and what sort of trends have come out? 

This news service talked to Paul Freeland, managing director of SEI Family Office Services, part of US-based investments and technology group SEI. The interview also forms a part of our examination of family offices issues during March (check out this link for more detail about our forthcoming feature series.)

What has changed about servicing clients in the COVID-19 environment?
The questions we answer and the problems we help solve have certainly changed. We’re seeing a heightened focus on estate planning, tax planning and financial position reporting, but the way in which we service clients hasn’t changed. Prior to the pandemic, we were well-suited to handle a remote client service environment, using everyday tools like our online client support portal and self-service documentation center. 

Our support team has always been a click, phone call or email away, and that didn’t change when the world went remote. As we got deeper into the pandemic, we continued to be diligent, collaborative and innovative. We continued to value each unique client relationship. We continued to help our clients maximize their investment in our solutions because that’s who we are and always have been.

Has there been an increase in certain needs of clients in this new environment?
At first, clients needed very mechanical solutions. We saw an uptick in requests for things like audit queries and workflow configurations to help provide remote oversight in place of legacy swivel-chair processes. But as the pandemic wore on, we saw more expansive technology and service needs emerge. Firms that had previously been tepid about implementing a client portal for family members began inquiring about a digital way to share quarterly reporting. 

There was an amplified desire to expand service relationships through outsourcing as organizations, particularly family offices and banks, saw the benefit of partnering with a well-capitalized, global, tech-focused firm. Those conversations continue today. Everyone wants a contingency plan in this new world of unknowns, and more clients are looking to leverage SEI’s team of accounting and operations professionals to check those boxes. 

What should clients be doing differently in light of recent events? 
We saw many of our clients use the pandemic and ensuing economic downturn to get their houses in order. Firms used this opportunity to evaluate goals, projects and relationships - all of which are important right now. Above all, the pandemic has proven that wealth management organizations should be acknowledging the importance of choosing strategic partners that can be innovative, nimble and reliable, so that they can maintain continuity in the event of disaster.

Although recent events might have hit M&A activity, do you think that there are going to be further types of acquisitions in this space? 
COVID-19 forced the wealth management community out of their offices and into their homes, which impacted the way firms have gone about M&A, but it arguably hasn’t completely derailed merger and acquisition activity. While in-person negotiating or onsite due diligence isn’t happening right now, wealth management firms are still working on strategic initiatives. It’s unrealistic to wait for life to return to normal or for offices to be bustling again. Digital tools have become invaluable, and wealth management firms are embracing the fact that even though the process is different, the function of changing and growing is the same.

What new markets did the Archway deal open up for SEI, and vice-versa, and what additional markets are you exploring? What business synergies have you been able to achieve now that SEI and Archway have become one?
Prior to the acquisition, SEI was already successfully delivering private wealth solutions to firms throughout the wealth management space, from family offices and intermediaries who serviced the family office space to ultra-high net worth individuals themselves. Now that Family Office Services, formerly Archway, is wholly integrated into SEI, we are able to offer an even more robust solution to large, complex investment management, private wealth management and private banking organizations. Using the technology, knowledge and infrastructure from a myriad of internal units, we can curate a highly-tailored solution for the benefit of the client and their underlying investors.

A lot of changes are happening in wealth management - can you share any thoughts about the trends that you think are going to be important and, in particular, any that perhaps aren’t getting much attention at the moment? 
Digitization isn’t necessarily new, but it has certainly accelerated as a result of the pandemic. Wealth management firms are seeking digital means of communicating, meeting and sharing, and this ultimately comes down to two things. The first is the increasing strength of the client voice as they demand easier ways to access their financial information. Particularly in the high net worth space, customization and personalization is going to be even more important: treating the client first, second and third.

The second is the growing need, or even imperative, to meet this demand, by using new technologies, APIs and data sources to give the client what they want, when they want it and how they want it. Firms that are unwilling to move in that direction, or don’t have the resources or management support, will risk losing their clients to another firm that has already embraced technology as a means to better service their clientele.

What does “success” looks like for SEI Family Office Services going forward?
Success for SEI Family Office Services isn’t a checklist. When we first formed as Archway Technology Partners in 2002, success was growing our business and building out our technology. As our business took root and we were adding clients and regularly enhancing the technology, there was a new measure of success: client satisfaction and retention. Then success became growing our team. But at no point did any of these things taper off or become less important. These continue to be core success metrics, but today our horizons are broader than they’ve ever been.

Success is not just selling family office services solutions or chasing top-line revenue via discrete transactions. Instead, success is crafting a fitted solution using the right combination of technology and services across SEI’s entire solution suite, to ultimately give clients and their investors the best possible experience.

As we approach our fourth year as a part of SEI, the family office services business is becoming an increasingly integral part of every family office and wealth management solution across SEI’s markets.