Systems security was a chief concern of single- and multi-family office participants in a recent survey by Family Office Exchange.
Survey participants answering questions about their technology practices said another big concern was finding a software solution that integrates financial data across multiple functions.
Family offices’ sensitivity to security applied to both data and the communication of data. Seventy-one percent of participants said they did not send financial information to clients’ mobile devices.
In spite of these concerns, 56% expressed confidence in their security practices.
The FOX survey found that the desire for a reporting solution that aggregates data across key functions such as investments, tax, accounting and philanthropy remained a key challenge for family offices. Eighty-eight percent said they still relied on Excel to serve as the bridge between software packages.
“Integration remains the Holy Grail for family offices,” FOX senior consultant Jane Flanagan said in a statement.
Other key findings:
- 46% of family offices said they currently used cloud technology despite security concerns;
- 97% had or were in the midst of developing a process for disaster recovery and/or business continuity in the wake of Hurricane Sandy;
- 21% of family office participants had a dedicated IT professional on staff;
- 5% of the average family office budget was consumed by technology.