The Prospects of Wealth Management Business to Securities Houses
Date Issued
2007
Date
2007
Author(s)
Chang, Hsiu-Chen
DOI
zh-TW
Abstract
In view of recent developments in Taiwan financial market, all financial institutions are focus on wealth management business to meet with the market trends and customers’ needs. Nevertheless, we want to find out what competitive edges exist for Securities Houses compared to Banks in this business territory. How can Securities Houses prolong these advantages and be competitive to other financial institutes, both onshore and offshore, are the purposes of this study. This study will identify the SWOT of Securities Houses via the six force analyses and conclude why Securities Houses are actually in a better position than other Financial Institutions, in this kind of business segment.
Following are our conclusions :
1.Employees of Securities Houses have competitive edges over other Financial Institutions in products design, product knowledge, selling skills, customer service and salary structure. Through training enhancements, especially on conceptual transformations, from a securities broker to an asset management agent, we expect that employees of Securities Houses can have an outstanding leaning curve and get this business in practice easily.
2.Overall, in comparison, the current customers of Securities Houses have a better understanding of risk-return management, higher acceptance of asset management programs, and a solid mutual trust relationship with the employees of Securities Houses. Under these conditions, to strengthen customer relationship management (CRM) and gain thorough understanding of their needs are the key success factors for the instruction of wealth management business of Securities Houses.
3.A penny saved is a penny earned, on top of revenue developing, risk control is of more importance for financial institutes. Over the years, Security Houses have experienced all kinds of market risks, default risks and liquidity risks, and built up strong awareness and knowledge of risk management. At new product development, risk diversification will be properly built in to ensure risks be effectively controlled. This risk management skill is one of the core competitive edges for Security Houses.
From the policy prospectus, we suggest the followings:
1.De-regulation about internationalization for Securities Houses.
2.Allow investors open account with Securities Houses via electronic web under Certificate Authority mechanism.
3.Integrate the relative financial laws and regulations to make the legal organization consist with the functional organization.
4.Release the constraints of hardware & system requirements for subsidiary conducting cross-selling business under a financial holding company.
5.Expanding the business scope of Securities Houses by changing the “Positive List” to “Negative List”.
6.Integrate the requirements of certificates and licenses for financial institutions.
7.Not only the securities broker but also the employees in wealth management field can take securities orders.
8.Allow Securities Houses who engaged in re-consigned business can provide the margin trading services.
Subjects
財富管理業務
證券商
波特的競爭五力
Wealth Management Business
Securities Houses
Type
thesis
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