For most family offices, implementing new fintech software means working with a third-party vendor, but not always.

While most speakers at the Family Office Fintech Forum agreed that outsourcing was most efficient for family offices, some firms install proprietary systems, primarily for confidentially, according to Erin Hulse, founder and CEO of Deviate Consulting. “The biggest variability is that firms want control of data,” Hulse said. 

Before deciding what kind of software a family office should buy, use focus groups to decide where pain points are for staffers, suggested Leanne Haupt, head of family office services for mega RIA Corient. Conversely, family offices should avoid asking the IT department for requirements, she said.

“Make sure the end users have buy-in,” advised Ben Collins, senior director of growth marketing at Sage Intacct, “Be mindful of who’s involved.” Tapping into the experience of software user groups can also be helpful when evaluating different products, said Josh Kanter, founder and CEO of leaflplanner. And while family offices are bound to talk to each other and compare notes, Kanter cautioned that they won’t all have the same operating requirements.

Talking points
When family offices are ready to talk to a vendor, they should have a clear objective of the business case and a timeline in mind, as well as “an understanding of what the end state looks like,” Collins said. 

An RFP  should reflect a family office’s unique needs and not be a template, Collins stressed. Similarly, demos from the vendor should be tailored to address an office’s particular needs, said Jack Arrix, director of strategic alliances for Sage.

Above all, the evaluation and negotiation process with vendors shouldn’t be rushed, Arrix said. “That’s a huge red flag that sets you up for failed implementation,” he said.

Family offices should also keep in mind that fintech vendors provide a tool but “don’t solve all your problems,” said Paul Freeland, head of PwC’s Wealth Compass unit.

Demo highlights
Top industry vendors presented the following demos at the Forum:

-- bill showcased a secure, end-to-end bill pay solution for family offices and high net worth clients. Features included financial management with enhanced security, automation, and compliance. Integrated workflows, fraud prevention, and customized controls worked to streamline complex payments while maintaining confidentiality and efficiency; 

--  Bridge featured artificial intelligence-driven automation for alternative investments, streamlining data aggregation, document collection, and AI-powered extraction. The demo showed how Bridge’s software transforms unstructured documents into structured insights, eliminates inefficiencies, and enhances decision-making; 

--  Eton Solutions demo illustrated how its EtonGPT AI software integrated with AtlasFive to deliver intelligent automation by streamlining complex workflows. The software enhances efficiency by significantly reducing manual tasks, and generates actionable insights tailored for wealth management and family office operations.

-- The First Rate demo showcased innovative tools for data aggregation, consolidated reporting, and actionable intelligence tailored to family offices and wealth managers. The software included data integration, advanced reporting and AI-powered insights.

--  KnowLedger showed how its middleware platform eliminates manual entry of investment data into the General Ledger. The software is designed to help firms reduce time spent on the monthly/quarterly business process of data entry to the GL, which slows the capability of reviewing cash flows.

--  Omega Systems highlighted the growing cybersecurity risks faced by family offices and the basic cybersecurity hygiene required to protect family investments. The demo explained the practical and cost-effective IT security family offices need for operational efficiency.

--  Truewind showcased its AI Accountant, supporting transaction categorization, document collection, and client follow-ups. The software is also designed to accelerate the month-end close, improve accuracy, and provide real-time financial insights.