Theory in Action: A Wealth Management Case Study

Driven by the shifts in competitive environment (regulation, technology, client behavior and macroeconomics) industries enter into a strategic inflection point. Historically the leading players before shift fail to adapt to these paradigm changes, because they stick to their old successful business model and as consequence are being marginalized or disappear. On the one hand the article aims to use the Strategic Inflection Point theory by examining whether a traditional wealth management player is facing a strategic inflection point and builds up a case study based on this and applies Business Model Innovation as a solution to successfully overcome the strategic inflection point. Upon five interviews with experts in the wealth management field as well as an extensive literature review, firstly the paper provides a comprehensive approach on the Strategic Inflection Point, Business Model Innovation and Wealth Management theories. Finally, it builds up a case study upon VP Bank from Liechtenstein, a traditional wealth management player, to apply the business model innovation framework based on four pillar approach namely customer interface, offering, value delivery system, profit mechanism which incorporates innovation points as a solution to reach the new equilibrium and thus overcomes the strategic inflection point.