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; Maggi, S.. - (2012).

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.
2012
Bank Behaviour in Modern Banking
9781137001856
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11566/74636
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? 1
social impact