Future-proofing investment revenue models

Meeting shifts in investor behavior, trends, and regulatory changes to ensure sustainable long-term growth

Given the changing European investment landscape, banks and brokers should be asking:

How can we develop a future-proof offering and revenue model that ensures sustained growth and meets customer demands?

The retail investment boom observed during the pandemic has leveled off slightly in recent times, and so has trading activity. The new EU retail investor strategy foresees an inducement ban on non-advised transactions and a parallel regulatory offensive foresees the ban of payment for order flows.​

In this series of articles, our industry experts share insights, lessons from case studies, and cutting-edge approaches to help banks and brokers in future-proofing their investment offerings and revenue models against these challenges.

Retail Investment Study 2024

Are business models at a tipping point? Our recent Retail Investment Study examines the shifts in retail investor behavior, emerging trends, and the impact of regulatory changes on investment providers for the European market.

Retail investments study

EU Retail Investment Strategy

What are the legal and commercial implications for investment providers?

In May 2023, the EU Commission published its retail investment strategy. No full ban on kickbacks and inducements, but there will be impact: Commission ban on the sale of investment products if no advice is given.

Max Biesenbach, Simon Kucher partner, breaks down the legal and commercial implications, offering best practices for investment providers.

At retail banks, inducements account for 30-50% of investments revenues

Share of revenue streams in retail investments at universal banks

50-70% of funds transaction volume in advised propositions is non-advised. For this non-advised share, retail banks won't receive inducements

Share of non-advised funds transaction volume in advised portfolios

Our Offering

Customer segmentation and segment-specific offer design

We have a deep understanding of the diverse needs among different customer segments and optimize our FS clients’ offering landscapes accordingly

Go to market strategy for digital ventures and hybrid advice propositions

We build holistic wealth management apps and provide end-to-end support in developing hybrid advice solutions, from proposition design through UX design to revenue model development

Monetization excellence and future-proof revenue models

Our team creates future-proof revenue models (incl. inducement-free monetization models) to adapt to regulatory and competitive pressures

Loyalty scheme and incentive model design

We help deepen customer relationships and achieve superior cross- and up-selling rates via smart loyalty schemes and incentive models

Marketing excellence

We develop marketing strategies and strategic and operational KPIs for our clients. We then apply growth hacking methodologies to boost performance of certain marketing channels or activities

Meet our experts

Partner
Cologne, Germany
Partner
Zurich, Switzerland
Senior Partner
Frankfurt, Germany
Senior Partner
Munich, Germany
Partner
Frankfurt, Germany
Partner
Hamburg, Germany
Partner
Cologne, Germany
Partner
Zurich, Switzerland
Partner
Zurich, Switzerland
Partner
Munich, Germany
Partner
London, UK
Partner
Copenhagen, Denmark
Partner
Warsaw, Poland

Find out more

The retail investment market is undergoing a transformation. Banks and brokers in the European market need to act fast to protect their profitable growth. ​

With our industry experts and hands-on approach, we will help your business achieve sustainable growth in today’s challenging market.