AMP Business Model Canvas

Core banking, advice and portfolio platforms underpin AMP’s digital delivery, supporting scale and compliance while handling A$100+ billion in client assets across platforms. Fintech partners accelerate innovation and personalization, with global fintech investment around US$62 billion in 2023 driving product variety. Cloud and cybersecurity providers — used by over 90% of enterprises in 2024 — enhance resilience and uptime. APIs enable ecosystem integrations and can cut time-to-market by up to 30%.

External managers, custodians and fintechs expand AMP’s product coverage and resilience, with outsourced managers covering ~40% of institutional active mandates and custodial support across A$3.4 trillion (APRA, June 2024). Platform and bank partnerships handle A$100+bn in platform assets, while distribution alliances drive acquisition (mortgage brokers/IFAs ~60% origination, MFAA 2024). Regulatory and industry engagement (15 bodies; 13,000 advisers CPD 2024) reduce conduct risk.

Design superannuation, retirement income and investment products aligned to Australia’s A$3.6 trillion super sector (APRA Mar 2024), structuring fee tiers, liquidity windows and risk buffers. Stress-test portfolios against severe market shocks (eg 30% drawdown) and longevity scenarios to age 95 vs current life expectancy 83.4 years. Iterate product features from customer NPS/claims data and APRA/ASIC rule changes.

Strategic asset allocation and manager oversight (AMP FUMA A$121.3bn at 30 Jun 2024) drive returns and cost discipline. Goals-based planning aligns products to clients within Australia’s A$3.6tn super pool (APRA Mar 2024). Risk, compliance and treasury (Basel III CET1 min 4.5%) protect solvency and liquidity.

Mobile and web portals enable self-service and engagement, with 75% of customers using mobile banking in 2024. Advice, banking, and investments are unified through single-sign-on and integrated product flows. Data pipelines and analytics personalize experiences in real time. Secure infrastructure and encryption protect customer information and regulatory compliance.

Qualified network of 1,000+ advisers, CPD/FASEA accreditation and specialist teams deliver personalised advice; A$100bn+ AUM (2024) fuels fee revenue and manager access. 75% mobile adoption (2024) enables integrated digital advice, while AFSL/ACL, compliance tech and stronger governance respond to heightened ASIC scrutiny in 2024.

Diversified investments provide access to multi-asset, active, passive and alternatives across AMP’s platform, enabling blended exposure and liquidity. Risk-managed portfolios are tailored to investor goals and horizons with strategic asset allocation and dynamic risk controls. ESG options align values with performance—global sustainable assets topped US$35 trillion (2020 GSIA) and continue growing. Institutional oversight, independent governance and external audits strengthen fiduciary standards.

One relationship serves ~1.6m customers and manages A$130bn FUM (2024), bundling advice, super, investments and banking to reduce fragmentation and fees.

Income solutions target retirement longevity (life expectancy at 65 ~19–21 years) using blended guaranteed and growth streams with scenario stress tests.

Digital tools, open banking (2024) and clearer fees boost engagement, compliance and retention.

Life-stage engagement delivers content and offers tailored to accumulation, pre-retirement and retirement cohorts; personalized plans increased conversion by about 20% in 2024. Behavioral triggers (age milestones, job change, market shocks) prompt timely check-ins within 48–72 hours. Benefits and communications evolve as goals shift, and real-time data drives next-best actions via predictive models, improving retention ~15%.

Named advisers plus digital self-service drive retention: personalization lifts retention 30% (McKinsey 2024); 65% prefer digital channels (2024). Tiered SLAs cut cost-to-serve up to 40% and first-response SLA <2h reduces churn.

Employer onboarding drives scale, with auto-enrolment and proactive onboarding increasing participation by about 20 percentage points in comparable workplace super schemes in 2024. Onsite and virtual education sessions boost member understanding, with engagement rates reaching ~60–80% in program pilots. Payroll integration eliminates manual processing and cuts missed contributions by over 90%, while targeted campaigns raise retention roughly 10% annually.

Face-to-face advice and ~80 branches (2024) secure high-value clients and retention. Mobile/web (3.5B mobile users benchmark, 2024) enables self-serve, biometrics and open banking for faster conversion. Employer channels lift participation ~+20pp and payroll cuts missed contributions >90% (2024 pilots). Broker/platform APIs reduce processing time ~50% and boost referral visibility +30% (2024).

Pre-retirees should maximize contributions—2024 401(k) limit $23,000 with $7,500 catch-up—and optimize asset mix toward lower-volatility income and longevity protection. Run scenario plans for retirement dates and income needs targeting roughly 70–80% pre-retirement replacement ratios and model Social Security timing. Advise reducing high-cost debt, consider downsizing and long-term care/term life coverage. Expect high engagement in the 2–5 years before transition.

Retail investors seek low-cost digital passive solutions (passive ETFs ~40% of AU equity fund assets in 2024), price-sensitive and advice-optional. HNW clients (20.1m globally, $88.7T wealth in 2024) need bespoke multi-entity advice and premium service. Pre-retirees/retirees focus on tax-efficient drawdown, longevity protection and guaranteed income. SMEs (98% of AU firms, 68% workforce 2024) need integrated super, payroll and cash solutions.

Regulatory & compliance costs cover licensing, statutory reporting, audits and remediation programs, with external legal and consulting fees often running into tens of millions annually for large firms. Capital and prudential requirements (APRA target CET1 around 10.5% for major institutions) drive capital allocation and funding costs. Ongoing monitoring, controls and technology enhancements add recurring spend and project investment to meet evolving rules and examiner expectations.

Salaries/incentives are largest cost: adviser avg pay AUD150,000 (2024) plus 20–40% incentives; PI AUD3–12k. Tech/cloud (AWS31% MS23% GCP12%) and platform engineering drive recurring OPEX. Compliance, audits and capital needs plus funding costs rose with RBA cash rate 4.35% (2024).

Banking net interest is driven by interest margin on loans versus deposits, with AMP in 2024 focusing margin management to protect spread amid higher rate volatility. Treasury income from balance sheet management provides recurring lift to net interest in 2024 while fee income from payments and cards supplements NIM. Pricing of lending and deposit products reflects credit risk and prevailing funding costs.

Advice & planning fees (~0.8% p.a. of AUM average in 2024) and employer workplace services drive recurring revenue; investment management fees range 0.25%–1.20% with some performance fees; banking net interest and treasury lift NII; platform FUM ~A$88bn (FY2024) underpins distribution, brokerage and account fees; retirement fees leverage Australia’s A$3.5tn super market (APRA Jun 2024).