Conflict within family offices is on the rise, according to a report from Standard Chartered Private Bank.
The report, which surveyed 160 family office professionals, found that 74 per cent of respondents had seen an increase in intra-family conflict. Alongside this, respondents cited the need for better succession planning and the embrace of AI as key priorities for the future management of HNW and UHNW family wealth.
The report sheds light on the decision-making processes within family offices. While the final say typically rests with the family, some decisions are made with significant input from the office’s professionals, while others remain largely within the family’s control.
Decisions over conflict resolution are made personally by families 76 per cent of the time, as shown in the chart below. Likewise, 77 per cent of decisions concerning succession are made by family members themselves – a long-standing source of tension among HNW and UHNW families.
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By contrast, only 31 per cent of investment decisions are made directly by family members. As family offices adopt a more holistic approach – extending their remit beyond investment portfolios to education, lifestyle management and philanthropy – professional influence appears to be growing.
‘We have moved from an age of preservation to an era of positioning,’ said Raymond Ang, Global Head of Private Bank and Affluent Clients, and Head of Wealth and Retail Banking. ‘The most sophisticated families are now strategically reviewing their entire wealth ecosystem: where it is housed, how it is governed and who makes decisions. This is not only about mitigating risk; it’s about building resilience in an age of uncertainty.’
While investment decision-making is already informed by experienced professionals, many family offices are now exploring the potential of AI to support management decisions — with human oversight remaining the final arbiter.
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This comes as the wider finance sector also begins to integrate AI. JP Morgan recently announced that employees can now use machine learning tools to assist with their end-of-year reviews.
‘We have reached an inflection point,’ said Mike Tan of Standard Chartered Global Private Bank. ‘Families increasingly view technology as a strategic wealth management partner. Beyond administrative support, AI is being used to enhance portfolio management and anticipate risk. But its true value lies in augmenting human judgment – combining speed and scope with the intuition and discipline of experienced decision-makers.’
The report also highlights the financial benefits of proactive succession planning. Eighty-seven per cent of families recognised that better planning could save money, as legal disputes over assets often lead to costly battles.
‘In an increasingly unpredictable world, the architecture of wealth management must evolve to build resilience, unlock opportunities and protect legacies,’ said Ang. ‘Families must move beyond reactivity and plan for change, embedding relevance and longevity for generations to come.’
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