There has been a paradigm shift in family office technology.

A decade ago, family offices had to custom build systems to meet their specific needs. It was expensive, cumbersome, and could quickly prove obsolete as the family’s needs grew and evolved. Even when cloud-based solutions first joined the conversation, many offices expressed concern about how trustworthy the systems truly were—particularly when it came to privacy and data security.

Today, the cloud has completely transformed wealth management and family office technological capabilities. Compared to build-from-scratch systems, the cloud is cheaper, more adaptable, and more secure. Let’s take a look at each of these areas a little more closely:

Cheaper:

Modern cloud solutions offer family offices more for less. By giving families the ability to outsource their technology needs, to the cloud has made IT a service. According to our estimates, a cloud-based solution can actually save a family office a significant amount on their software and technology costs when compared to the “old” on-premises model.

Adaptable:

As your office grows and ages, and your needs change, the cloud is much better suited for upgrading and updating capabilities. While a cloud-based solution is technically less customizable than a built-from-scratch in-office system, it is actually more scalable and adaptable than building and maintaining your own system in your own office and on your own servers. With a plethora of new cloud-based options, the odds are good that there is an existing system that meets most or all of your family office’s needs. And when you purchase an existing cloud-based product or application, you help “future proof” much of the technology in your family office, as the responsibility of keeping up with industry needs and the latest software developments is on the vendor, instead of on you.

Secure:

Data security, business continuity and disaster recovery are costs that many family offices don’t take into consideration when it comes to IT, but despite what you might think, this is another area where cloud applications give you an advantage. Federal regulations require that cloud services for financial services provide data security and business continuity at a level that most small family offices would otherwise be unable to meet due to cost restraints. With the cloud, you get a built-in level of security that protects your privacy and ensures business continuity.

Want to know the one underutilized defense against cybercrime that all family offices need to consider? Click here to find out.