IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-03494465.html
   My bibliography  Save this paper

What is the impact of introducing productivity tools for wealth management professionals? A case study for the french market

Author

Listed:
  • Edouard Augustin Ribes

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper models the economic structure of the services provided by wealth management professionals. It offers a view on the transformation of the associated market when new productivity tools (i.e. digital robots) are introduced. Core insights are generated by calibrating the model to data from the French market. Key results are three fold. First, in the case of France, wealth management services are currently limited to individuals with more than 1.5M€ of assets. For those services to be democratized and extended to the entire population, the model suggests that 60%+ of today's activities in the profession must be automated. Second, wealth management services have currently an average cost of 500€ per client. The model then predicts that for every percent of activity automated via the introduction of productivity tools, services prices are reduced by about 4 to 5€. Finally, the model highlights that the introduction of new tools is likely to trigger an increase in demand for wealth management professional over the short run. This holds true until their services gets extended to the general population, point at which, the number of professionals needed will drastically reduce.

Suggested Citation

  • Edouard Augustin Ribes, 2021. "What is the impact of introducing productivity tools for wealth management professionals? A case study for the french market," Working Papers hal-03494465, HAL.
    • Handle: RePEc:hal:wpaper:hal-03494465
    Note: View the original document on HAL open archive server: https://hal.science/hal-03494465v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03494465v1/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert Shimer & Lones Smith, 2000. "Assortative Matching and Search," Econometrica, Econometric Society, vol. 68(2), pages 343-370, March.
    2. Melanie Arntz & Terry Gregory & Ulrich Zierahn, 2016. "The Risk of Automation for Jobs in OECD Countries: A Comparative Analysis," OECD Social, Employment and Migration Working Papers 189, OECD Publishing.
    3. Levy, Moshe & Solomon, Sorin, 1997. "New evidence for the power-law distribution of wealth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 242(1), pages 90-94.
    4. Ralph Stinebrickner & Todd Stinebrickner & Paul Sullivan, 2019. "Job Tasks, Time Allocation, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 399-433.
    5. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    6. Jayadev, Arjun, 2008. "A power law tail in India's wealth distribution: Evidence from survey data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(1), pages 270-276.
    7. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-846, July-Aug..
    8. Whelan, Eoin & McGrath, Fergal, 2002. "A study of the total life cycle costs of an E-Commerce investment. A research in progress," Evaluation and Program Planning, Elsevier, vol. 25(2), pages 191-196, May.
    9. Charles I. Jones, 2005. "The Shape of Production Functions and the Direction of Technical Change," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 517-549.
    10. Edouard Ribes, 2022. "What are the financial implications of an ageing population for European citizens?," Working Papers hal-03118783, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edouard Ribes, 2023. "The need for data products in personal finance," Working Papers hal-04015599, HAL.
    2. Edouard Augustin Ribes, 2024. "The need for data products in personal finance," SN Business & Economics, Springer, vol. 4(10), pages 1-20, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krenz, Astrid & Prettner, Klaus & Strulik, Holger, 2021. "Robots, reshoring, and the lot of low-skilled workers," European Economic Review, Elsevier, vol. 136(C).
    2. Arthur Jacobs & Freddy Heylen, 2021. "Demographic change, secular stagnation and inequality: automation as a blessing?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 21/1030, Ghent University, Faculty of Economics and Business Administration.
    3. Prettner, Klaus & Strulik, Holger, 2017. "The lost race against the machine: Automation, education and inequality in an R&D-based growth model," Hohenheim Discussion Papers in Business, Economics and Social Sciences 08-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    4. Caroline Lloyd & Jonathan Payne, 2021. "Fewer jobs, better jobs? An international comparative study of robots and ‘routine’ work in the public sector," Industrial Relations Journal, Wiley Blackwell, vol. 52(2), pages 109-124, March.
    5. Cristian Bartolucci & Francesco Devicienti, 2012. "Better Workers Move to Better Firms: A Simple Test to Identify Sorting," Carlo Alberto Notebooks 259, Collegio Carlo Alberto.
    6. Lones Smith & Axel Anderson, 2002. "Assortative Matching, Reputation, and the Beatles Break-Up," Game Theory and Information 0201002, University Library of Munich, Germany.
    7. Renato Gomes & Alessandro Pavan, 2013. "Cross-Subsidization and Matching Design," Discussion Papers 1559, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    8. Liu, Shasha & Wu, Yuhuan & Kong, Gaowen, 2024. "Politics and Robots," International Review of Financial Analysis, Elsevier, vol. 91(C).
    9. Gallo, Oihane & Klaus, Bettina, 2024. "Stable partitions for proportional generalized claims problems," Games and Economic Behavior, Elsevier, vol. 147(C), pages 485-516.
    10. Domenico Tabasso, 2011. "With or Without You: Hazard of Divorce and Intra-household Allocation of Time," Melbourne Institute Working Paper Series wp2011n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    11. Zilian, Laura S. & Zilian, Stella S. & Jäger, Georg, 2021. "Labour market polarisation revisited: evidence from Austrian vacancy data," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-7.
    12. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2016. "Matching, Sorting and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 19, pages 63-87, January.
    13. Dario Cords & Klaus Prettner, 2022. "Technological unemployment revisited: automation in a search and matching framework [The future of work: meeting the global challenges of demographic change and automation]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 115-135.
    14. Alfred Galichon & Bernard Salanié, 2022. "Cupid’s Invisible Hand: Social Surplus and Identification in Matching Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(5), pages 2600-2629.
    15. John Burgess & Julia Connell, 2020. "New technology and work: Exploring the challenges," The Economic and Labour Relations Review, , vol. 31(3), pages 310-323, September.
    16. Arnaud Costinot & Jonathan Vogel, 2010. "Matching and Inequality in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 118(4), pages 747-786, August.
    17. Davi B. Costa, 2021. "Benefits of marriage as a search strategy," Papers 2108.04885, arXiv.org, revised Aug 2021.
    18. Xu, Yujing & Yang, Huanxing, 2019. "Targeted search with horizontal differentiation in the marriage market," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 31-62.
    19. Simon D Woodcock, 2002. "Modeling Labor Markets with Heterogeneous Agents and Matches," Longitudinal Employer-Household Dynamics Technical Papers 2002-19, Center for Economic Studies, U.S. Census Bureau.
    20. Emil Sundstrup & Annette Meng & Jeppe Z. N. Ajslev & Karen Albertsen & Flemming Pedersen & Lars L. Andersen, 2022. "New Technology and Loss of Paid Employment among Older Workers: Prospective Cohort Study," IJERPH, MDPI, vol. 19(12), pages 1-13, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-03494465. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.