This paper proposes a theoretical framework which sets alternative business models (BMs) in the wealth management industry, testing them with experimental data. Our “map” of business models arises when wealth managers (WMs) potentially make a mix of business process standardization/customization, together with ‘make or buy choices’, after an external and internal strategic analysis has been carried out. As far as the demand-side is concerned, the size of wealth under management is integrated with a new criterion to cluster customers, which also considers the client’s risk propensity and his/her willingness to diversify investments. In addition, internal conditions in the WM organization are adequately considered. Demand and supply operational information, referring to a unique dataset of Italian WMs covering more than the 88% of the national industry, allows us to test the reliability of the theoretical layout and to show the positioning of a relevant sample of Italian WMs. Operational data support that our business models map can be a reliable instrument both to describe and to guide the strategic position of WMs. Theoretical BMs corresponding to “direct” customization may unambiguously be undertaken by three different clusters of Italian WMs.

A Business Model Map in the Wealth Management Industry

LUCARELLI, Caterina;
2012-01-01

Abstract

This paper proposes a theoretical framework which sets alternative business models (BMs) in the wealth management industry, testing them with experimental data. Our “map” of business models arises when wealth managers (WMs) potentially make a mix of business process standardization/customization, together with ‘make or buy choices’, after an external and internal strategic analysis has been carried out. As far as the demand-side is concerned, the size of wealth under management is integrated with a new criterion to cluster customers, which also considers the client’s risk propensity and his/her willingness to diversify investments. In addition, internal conditions in the WM organization are adequately considered. Demand and supply operational information, referring to a unique dataset of Italian WMs covering more than the 88% of the national industry, allows us to test the reliability of the theoretical layout and to show the positioning of a relevant sample of Italian WMs. Operational data support that our business models map can be a reliable instrument both to describe and to guide the strategic position of WMs. Theoretical BMs corresponding to “direct” customization may unambiguously be undertaken by three different clusters of Italian WMs.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11566/74636
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