Family office technology and automation
Along the technology journey toward automotive automation and self-driving cars, experts frequently talk about five levels of automation, ranging from no driving automation whatsoever (Level 1) to full driving automation (Level 5). Today’s family offices might think about a similar spectrum when considering where they are in harnessing the power of automation to improve the way they get from here to there.
We may not have flying cars already like Back to the Future led us to expect, but surely we’ll have regular self-driving cars soon, right? It seems like that topic is a common headline in automotive news lately. However, the reality is a little different, as explained in this Forbes article:
“Despite the hype that liberation day will dawn soon, and cars will drive themselves, there’s no realistic chance that full-on self-driving will be available before 2030, and then only in a tiny number of top-of-the-range sedans and SUVs, according to consultancy Accenture.”
Level 5, according to the article, is a state of automation that assumes control by a computer with no steering responsibility for humans. And that level of total control is still some time away: “A L5 system that can drive from door to door in the whole of Europe and North America at least, for at least 80% of all itineraries and with 0 accidents and disengagements” is at least a decade away, researchers say.
What does this have to do with a family office?
When you zoom out and look at the big picture, all cars do essentially the same thing, but other considerations determine the make and model you buy. One factor could be the degree of self-driving, and a more fully automated self-driving car may imply a higher-value luxury car. And yes, Rolls Royce has a self-driving concept car. Of course, the other option is a Rolls Royce with a chauffeur!
So what’s the analogy with family office operations?
Business operations in a family office revolve around processing data and information, moving it through various defined processes to achieve the desired outcome. It’s analogous to driving a car from point A to point B, obeying all road rules in the most efficient way possible while avoiding potential obstacles and problems. Is it easy to see the benefit of a “self-driving family office”?
Implementing fully integrated automated processes
In most family offices today, the core problems to be overcome are the lack of an integrated technology system and the resulting reliance on manual processes and procedures. To use the self-driving car analogy, these family offices are at Level 1 or 2, at best. They’re relying on humans to do almost everything in their offices.
Is self-driving possible in family office operations? Yes, and you do not have to wait until 2030.
Depending upon the business process and workflow, Level 5 is attainable. Fully integrated family office software is at the pinnacle of family office technology. This next-gen tech provides a platform that automates the business processes and workflows behind transactional work. This enables family office professionals to focus on data-driven analysis, recommendations, and decision-making — what all family offices should strive to achieve.
Benefits of adopting an integrated platform
Here’s one example of how an integrated platform can help family offices automate critical processes and improve accuracy: Say that a custodian incorrectly enters a digit for a capital call transaction and sends the wrong amount. The exception reports that an integrated platform can automatically generate will catch the mistake the same or the next day, allowing the error to be rectified quickly and with minimal impact on operations, instead of the mistake going unnoticed for potentially weeks (or not at all).
Another way that next-gen tech can immediately improve efficiency in a family office is through automated reporting. In many family offices, data is siloed, and creating a unified, holistic report to share with family members and stakeholders can take staff days to produce. At the same time, they cross-check spreadsheets and compile them. This is both time-consuming and mistake-prone. Fully integrated platforms centralize all the information so that data is quickly compiled into customizable, interactive reports that can be automatically generated. This automation frees staff to perform higher-value tasks, improves accuracy, and reduces risk. Just like the Level 5 self-driving car of our dreams!
AtlasFive: The family office software of the future
We might wait more than a few years for a car that drives itself while the “driver” naps or reads, but the future is now for family offices. Take advantage of all a fully integrated technology platform, like AtlasFive, can do for your team. A family office leveraging existing technology, like the coming Level 5 automobile, can drive itself. Imagine what your family office can achieve with its own personal chauffeur and a fully automated self-driving platform.