Specifically, it can be divided into "individual or team entrepreneurship" and "institutional expansion". Individual or team entrepreneurship means that the partner team or founder decides to set up their own wealth management company for various subjective and objective reasons. Institutional expansion refers to the internal and external factors such as organizational strategy, competitive advantage or business environment, and various legal entities decide to expand their business areas and carry out wealth management business.
In reality, the single sponsor is still the main component of the founder; But recently, more and more cases are that individual entrepreneurs and institutional expanders form long-term contracts through reasonable ownership structure design to realize complementary advantages.
Condition 2: Resource endowment
Both individual entrepreneurship and institutional expansion need to clearly describe their own development path and resource endowment. At present, China can be roughly divided into three categories: customer resource capability, asset management capability and technical capability.
Customer resource ability refers to the quantity, quality and stickiness of high net worth customer resources and the ability to rapidly expand high net worth customer resources. Or simply, it is the ability to raise products. Further subdivision, the product feeding ability needs to be divided into single product feeding ability and diversified product feeding ability according to the types of products that can be fed; Or according to the means of fundraising, it can be divided into institutional channel fundraising ability and direct retail fundraising ability. Asset management ability refers to the management ability in terms of asset quantity, asset quality and asset pricing power. Or simply put, it is the supply capacity of products.
It also needs to be divided into two categories: single asset management ability and diversified asset management ability; Or according to the way of asset management, it can be divided into direct management ability and indirect management ability. The so-called technical capability is a new force recognized by the industry in recent years due to the rise and precipitation of Fintech/WealthTech.
Many players and founding teams in this field are not the resource background and development path of traditional wealth or asset management in the past, but start from local technical fields such as P2P, social networking, industry training, industry self-media, blockchain/bitcoin, and smart investment. , gradually establish their own differentiated advantages in user traffic, brands, user communities, data analysis, investment algorithms and other technologies and Internet fields, and then intentionally cut into high-end wealth management business.
Three types of endowments can naturally have both. But more often, it starts with a unique skill. Few two can be formed at the same time at the beginning of their establishment. Even if there is, there are often obvious differences between the two abilities. There are very few start-ups with strong strength balance, which is also the essence of top-level architecture and resource combination allocation in the early stage of entrepreneurship. Of course, if you don't have these three things, wash and sleep first and come back when you are ready.
Condition 3: Commercial purpose
The conditions of the first two dimensions are more objective conditions, while the business purpose is subjective selective conditions; Namely: why do you want to open a wealth management business? It can also be divided into three types: customer-centered, building an independent wealth management business-independent business; Carry out diversified business around its own central business and set up a wealth management business module-diversified business; A necessary supplement to the physical industry and asset management business, enriching and enriching the fund source of the industrial chain/asset management chain-the fund-side business.
The so-called independent business refers to some independent wealth management studios, small wealth management companies, boutique wealth management institutions or family wealth management offices created by professional financial planners or professional individuals.
They start from customers' needs, customize solutions for customers, and comprehensively collect and match products and services on the market. The so-called diversified business means that some of the original main business is not the traditional narrow sense of wealth management business (such as selling wealth management products or providing asset allocation services), but other business models around high-net-worth people and wealthy people (such as immigration, high-end real estate development or real estate brokerage, study abroad consulting, high-end community service, high-end training, etc.). ) is established to increase revenue sources, enhance customer stickiness and enhance customer experience.
The fund-side business refers to the asset management business that was born due to the Group's development strategy and its corresponding investment and financing needs, and continues to derive the corresponding wealth management business needs. The latter two are not independent businesses, but a simple way to distinguish fund-side business from diversified business is to analyze whether the financing purpose of the products raised is to meet the capital needs of its own group strategy, industry and asset management development, or just to earn intermediate income and realize diversification of income sources. Its main business has nothing to do with product financing.
In the same way, the business purpose can be single and pure, cross-integrated, and even gradually adjusted and changed in the promotion process. But on the whole, the purpose is clear and important. Because purposeful conditions will directly affect the design of the company's top-level architecture, the choice of development path, the deployment of product lines and the construction of team talents.
Source: NewBanker blog