Business Model Canvas of AMP Financial Services

This report analyses the business model of AMP Financial Services, covering the building blocks, interrelationships, critical success factors, downside risks, and business model changes. The report also provides recommendations for the company.

Running head: BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
Executive Summary
This report is based on the analysis of the business model of AMP Financial Services which
is a company that operates in Australia. The company provides finance based facilities and
services to the citizens of the country. The major aim of the company is to develop the
services that are based on low interest rates and easy financial operations as well. The factors
which are related to the success of this concept are analysed in the report. The risks based on
the organizational processes are also analysed and the changes that can be made in the
business model are suggested.

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
Table of Contents
I. Introduction.................................................................................................................3
II. Business model..........................................................................................................3
A. Building blocks.....................................................................................................3
1. Customer segments............................................................................................3
2. Key partners.......................................................................................................3
3. Value proposition...............................................................................................4
4. Key activities......................................................................................................4
5. Channels.............................................................................................................4
6. Revenues Streams..............................................................................................4
7. Cost structure.....................................................................................................4
8. Key resources.....................................................................................................5
9. Customer relationships.......................................................................................5
B. Interrelationships...................................................................................................5
C. Critical success factors..........................................................................................6
D. Downside risks - 150.............................................................................................6
E. Business model changes - 200...............................................................................7
III. Conclusion – 100......................................................................................................7
IV. Recommendations – 100..........................................................................................8
References......................................................................................................................9
Appendices...................................................................................................................11
Appendix 1...............................................................................................................11
Appendix 2...............................................................................................................12

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
I. Introduction
Amp is a financial service based organization which has its operations in New
Zealand and Australia. The organization is mainly known in the industry for providing
different types of services and products related to financial services. The different products
that are offered by the organization mainly include, savings accounts and home loans. The
headquarter of the organization is located in Sydney, Australia. AMP has also received one of
the largest shareholder registrations and most of the shareholders of the organization have
their base in New Zealand and Australia (Loans, retirement & education, 2018). The report
will be based on the analysis of business model canvas of the organization and the risks that
are being faced by the company.
II. Business model
A. Building blocks
1. Customer segments
The customer segments of the organization are mainly based on the retail and the
corporate customers or depositors. The corporate and retail borrowers of AMP are also a part
of the customer segment of the company. The customer segments thereby consist of both the
borrowers and the depositors of the bank.
2. Key partners
The key partners of AMP financial services are those who are able to provide
assistance to the company for services and products that it offers to the customers. The
partners in this case are mainly, the investment partners, regulatory agencies and the
technology vendors as well. These partners help the company to design its products in an
effective manner (Aversa et al., 2015).

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
3. Value proposition
The major value proposition of the AMP financial services is based on the interest
rates that it offers to the customers. The lower interest rates are provided for deposit based
products and high rates of interest are provided for the loan based products of the
organization (Fritscher & Pigneur, 2014).
4. Key activities
The major activities which are thereby performed by the organization in order to fulfil
the needs and demands of the customers include, branch operations, IT operations and the
call centre based operations. These activities of AMP financial services are able to develop
the services which are to be provided to the customers (Dudin et al., 2015).
5. Channels
The different effective channels of AMP Financial services which play an important
part in the services of the organization include, the branches of the bank, call centres, internet
services, mobile devices. The channels are required by the organization for the purpose of
providing appropriate services (Ghezzi et al., 2015).
6. Revenues Streams
The most important revenues streams that are significant for the proper operations of
AMP Financial services are based on the ways by which the organization can develop a
sustainable manner. The major income of the organization is gained from the interests that
are gained from customers. The fees that are paid by the customers based in various service is
also a part of the revenues streams (Gonçalves & da Silva, 2017).
7. Cost structure
The cost structure of the organization is thereby based on the interest based expenses
that are required to be maintained by AMP financial services. The costs of the company

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
related to the channels costs are a part of the cost structure that is created by AMP financial
services (Joyce & Paquin, 2016).
8. Key resources
The major resources of AMP financial services are thereby related to the IT
infrastructure and the physical infrastructure of the organization. The loan based assets that
have been gained by AMP financial services are important resources of the company in the
environment in which it operates (Plenter et al., 2017).
9. Customer relationships
The relationships which are created with the customers play a major role in the
successful operations of the organizations. AMP Financial services is able to operate in the
industry in an effective manner with the help of personal assistance that is provided to them.
The automation based activities of the organization are also important for the efficient
services that can be provided to the customers with great speed (Toro-Jarrín, Ponce-Jaramillo
& Güemes-Castorena, 2016).
B. Interrelationships
The different building blocks of the business model canvas are interrelated with each
other which is helpful for the successful operations and effective services which are provided
to the customers. The partners of AMP Financial services are helpful in providing the
appropriate services and products to the customers. The activities that are performed by the
organization are important factors which affect the different customer segments of the
company. Value proposition of the company is significant for AMP financial services to
serve the customers in an effective manner. The channels of distribution of the AMP financial
services are helpful in creating effective customer relationships (Vargas, Calva & Camacho,
2015). The cost structure of AMP financial services helps in deciding the products that can be

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
developed for the customers. The costs are helpful in deciding the amount of revenues that
need to be gained by the company in order to operate in the financial industry in a sustainable
manner.
C. Critical success factors
The factors which have been helpful for AMP financial services for the purpose of
gaining success in the industry are related to the creation of an effective salesforce which is
necessary across different channels. The consistent experience that has been provided by the
company to the customers have played an important in providing appropriate services to the
customers of AMP financial services. The company has been able to gain various market
shaping capabilities which has helped AMP financial services to lead the financial service
industry. The organization has found new and innovative ways to delight the customers and
providing effortless experiences (Zolnowski & Böhmann, 2014).
The success of AMP is based on the ways by which the company is able to disrupt the
industry with the help of innovative services. The implementation of technologies has been
the most important activity that has been a reason behind the success of AMP financial
services. The organization has created effective partnerships with organizations like,
Salesforce for the purpose of making the work process smarter and faster in nature.
Innovation has thereby been a critical success factor for AMP financial services (Vargas,
Calva & Camacho, 2015).
D. Downside risks
The major risk that can be faced by AMP financial services is based on the ways by
which the company is able to gain the trust of the customers in the area of its operations. The
financial services which are provided to the customers are totally based on the security based
issues. The data of the customers need to be kept secure by the organization so that they are

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
able to serve them in an effective manner. The security based threats faced by the customers
can cause a lack of customers for the organization in the financial market (Zolnowski &
Böhmann, 2014). The customers thereby need to be protected from the issues that can be
faced by them in the different operations. The service quality needs to be effectively
maintained by AMP financial services so that it is able to maintain its position in the industry.
The financial industry needs to face some extra risks due to the changes that constantly take
place in the external environment. The organization thereby needs to mitigate these risks in
order to operate in the financial industry.
E. Business model changes
The changes which need to be made in the business model mainly includes, the
changes in the number of partners of the organization and further improve its channels as
well. The alliances that are made by AMP Financial Services need to be effective enough to
attract new customers towards the organization in an effective manner. The website of the
organization needs to be improved so that the customers are able to gain more services and
their needs can be fulfilled as well. The reviews that are provided by the customers on the
website can thereby act as an effective source of information for the organization so that it
can improve the products and the service offerings as well (Toro-Jarrín, Ponce-Jaramillo &
Güemes-Castorena, 2016). The promotional activities of AMP financial services need to be
improved so that the company is able to create more awareness about its services and
products among the customers.
III. Conclusion
The report can be concluded by stating that the building blocks of the business model
of AMP financial services was able to depict that the organization needs to improve its
operations so that it is able to create a position in the market. The company needs to mitigate

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
the risks that have been faced in the industry in order to stay profitable in the financial
industry. The company can thereby improve the business model in such a manner which will
help in providing competition to the other financial organizations.
IV. Recommendations
 Improvement of services provided to the customers.
 Understanding the changes that have taken place in the external environment.
 The growth of the financial market of Australia can help the company to
increase its profitability.
 Trying to provide the best services to customers in order to attract them
towards the organization.

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
References
Aversa, P., Haefliger, S., Rossi, A., & Baden-Fuller, C. (2015). From business model to
business modelling: Modularity and manipulation. In Business models and
modelling (pp. 151-185). Emerald Group Publishing Limited.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting.
Fritscher, B., & Pigneur, Y. (2014, July). Visualizing business model evolution with the
business model canvas: Concept and tool. In Business Informatics (CBI), 2014 IEEE
16th Conference on (Vol. 1, pp. 151-158). IEEE.
Fritscher, B., & Pigneur, Y. (2015, July). Extending the Business Model Canvas: A Dynamic
Perspective. In Proc. International Symposium on Business Modeling and Software
Design (Vol. 5, pp. 86-96).
Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study
on the Impact of Business Model Design & Lean Startup Approach versus Traditional
Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).
Gonçalves, R. F., & da Silva, M. T. (2017, March). System Thinking and Business Model
Canvas for Collaborative Business Models Design. In Advances in Production
Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International
Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised
Selected Papers(Vol. 488, p. 461). Springer.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to
design more sustainable business models. Journal of Cleaner Production, 135, 1474-
1486.

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
Loans, H., retirement, S., & education, N. (2018). AMP Personal Banking - Accounts, Super,
Home Loans & Insurance | AMP. Retrieved from https://www.amp.com.au/
Plenter, F., Fielt, E., Hoffen, M., Chasin, F., & Rosemann, M. (2017). Repainting the
business model canvas for peer-to-peer sharing and collaborative consumption.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., & Güemes-Castorena, D. (2016). Methodology
for the of building process integration of Business Model Canvas and Technological
Roadmap. Technological Forecasting and Social Change, 110, 213-225.
Vargas, I. S., Calva, A. L. G., & Camacho, J. H. (2015). Business model canvas. Ciencia
Huasteca Boletín Científico de la Escuela Superior de Huejutla, 3(5).
Zolnowski, A., & Böhmann, T. (2014). Formative evaluation of business model
representations-The service business model canvas.

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BUSINESS MODEL CANVAS OF AMP FINANCIAL SERVICES
Appendices
Appendix 1
Key Partners
 Partners in
investment.
 Vendors of
technology.
 Agencies
based on
regulatory
efforts.
Key Activities
 Operations
in the branch.
 Operations in
the call
center.
Value Proposition
 Providing
lower interest
rates in
loans.
 Providing
higher rates
of interest in
the deposits.
Customer
Relationships
 Assistance
provided on
a personal
basis.
 Automation
services.
Customer
Segments
 Corporate
customers.
 Retail
customers.
Key Resources
 Infrastructure
based on IT.
 Loan based
assets.
Channels
 Branches of
the
organizatio
n.
 Mobile
applications
.
Cost Structure
 Costs based on the channels of the bank.
 Expenses based on the interest.
Revenue Streams
 Income based on the interests.
 Income gained from the various fees.

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Appendix 2