One in five US family offices has a dedicated IT professional on staff and the average firm spends 5% of their budget on technology, new research reveals.
The Family Office Exchange study Technology in the Family Office, which surveyed single and multi family offices, revealed security was the top technology concern when it came to family offices.
Only 56% of family offices expressed confidence in the security of technological processes they use at their firm. As a result, 71% of family offices opted not to send financial data to clients’ mobile devices, such as smartphones and iPads.
Forty-six per cent of family offices use cloud-based computing, which provides real-time communication between a network of linked computers, despite the fact this is sometimes seen as prone to security deficiencies.
The report revealed that in the wake of Hurricane Sandy last year – the second-costliest hurricane in US history – 97% of family offices were developing a process for disaster recovery or business continuity.
In terms of software, the survey found the majority of family offices were left wanting when it came to an aggregated package that serviced all their needs – and this was perceived to be the second biggest concern after security. In 88% of family offices, Excel spread sheets were used to bridge this gap.
FOX senior consultant Jane Flanagan said: "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."