Did private wealth management and customers' behavior change

Dublin Business School

&

Liverpool John Moores University

Did private wealth management and customers’

behavior change after the financial crisis of 2008 in

France?

MBA in Finance

Dissertation submitted in part fulfilment of the requirements for

the degree of Masters of Business Administration (M.B.A) at the

Dublin Business School and Liverpool John Moores University.

Submitted by: Jean-Antoine BAUX

Student ID: 1715698

Supervisor: Mr Michael Kealy

Word count: 20 800 words

Submission date: 10th May 2013

Table of Contents

Declaration .................................................................................................. 1

Acknowledgments....................................................................................... 2

Abstract ....................................................................................................... 3

List of Figures ............................................................................................. 4

List of Abbreviations.................................................................................. 4

Chapter 1 - Introduction............................................................................ 5

I. Understanding the concept of Wealth and Wealth Management............................. 5

1. Wealth ..................................................................................................................................... 5

2. Wealth Management................................................................................................................ 5

II. Background of the Issue ............................................................................................... 7

III. Research aim.................................................................................................................. 8

IV. Research objectives ....................................................................................................... 9

V. Approach to the dissertation ...................................................................................... 10

VI. Suitability of the researcher and Interest in the subject.......................................... 10

VII.Scope and limitations of the research........................................................................ 10

VIII.Limitations.................................................................................................................. 11

IX. Organisation of the dissertation................................................................................. 12

1. Chapter 1 – Introduction........................................................................................................ 12

2. Chapter 2 - Literature Review............................................................................................... 12

3. Chapter 3 - Research Methodology and Research Methods.................................................. 12

4. Chapter 4 - Research Findings and Data analysis................................................................. 13

5. Chapter 5 - Conclusions and Recommendations................................................................... 13

6. Chapter 6 - Self-reflection on own Learning......................................................................... 13

7. Chapter 7 - Bibliography....................................................................................................... 13

8. Chapter 8 - Appendices......................................................................................................... 13

Chapter 2 - Literature Review ................................................................ 14

Introduction............................................................................................... 14

Content of the Literature Review ........................................................... 15

I. Private Wealth Management...................................................................................... 16

1. Nature and Objective of Private Wealth Management.......................................................... 16

2. The Wealth management process.......................................................................................... 19

3. Private wealth management industry post crisis.................................................................... 21

4. Private wealth management in France................................................................................... 25

II. Customer behavior ...................................................................................................... 27

1. The high-net-worth individuals. ............................................................................................ 27

2. Changes in customer behavior with the financial crisis of 2008........................................... 28

3. Changes in customer behavior in France............................................................................... 31

III. Conclusion.................................................................................................................... 33

Chapter 3 - Research Methodology and Research Methods................ 34

Introduction............................................................................................... 34

I. Research questions...................................................................................................... 34

II. Research Philosophies................................................................................................. 35

1. Research Ontology ...................................................................................................... 37

 Realism.................................................................................................................................. 37

 Positivism.............................................................................................................................. 37

 Pragmatism............................................................................................................................ 37

 Interpretivism ........................................................................................................................ 37

2. Research approaches................................................................................................... 38

 Deductive............................................................................................................................... 38

 Inductive................................................................................................................................ 38

3. Research strategies...................................................................................................... 39

 Experiment ............................................................................................................................ 39

 Survey.................................................................................................................................... 39

 Action research...................................................................................................................... 39

 Grounded theory.................................................................................................................... 39

 Ethnography .......................................................................................................................... 40

 Archival research................................................................................................................... 40

 Case study – (In depth Interviews)........................................................................................ 40

4. Research choices.......................................................................................................... 41

 Mono method – Qualitative research .................................................................................... 41

5. Research Time horizons.............................................................................................. 42

6. Structure of the research method - Framework....................................................... 42

Sequence structure ................................................................................................................. 42

7. Data collection and data analysis............................................................................... 43

 Data collection....................................................................................................................... 43

 Primary data collection.......................................................................................................... 43

 Secondary data collection...................................................................................................... 43

 Data analysis.......................................................................................................................... 45

8. Sample .......................................................................................................................... 45

9. Ethics............................................................................................................................ 46

10. Limitation..................................................................................................................... 46

Chapter 4 - Research Findings and Data analysis ................................ 47

Introduction............................................................................................... 47

I. In depth interviews...................................................................................................... 47

II. Structured interview analysis..................................................................................... 48

III. Findings........................................................................................................................ 48

Research question 1....................................................................................................................... 48

1. Wealth manager findings....................................................................................................... 49

2. Customer findings ................................................................................................................. 50

Research question 2....................................................................................................................... 52

1. Wealth manager findings....................................................................................................... 52

2. Customer findings ................................................................................................................. 53

Research question 3....................................................................................................................... 54

1. Wealth manager findings....................................................................................................... 54

2. Customer findings ................................................................................................................. 55

Chapter 5 - Conclusions and recommendations.................................... 56

Introduction............................................................................................... 56

I. Findings and Conclusions........................................................................................... 56

II. Recommendations ....................................................................................................... 59

III. Limitation and Suggestions for Further Research................................................... 60

Chapter 6 - Self-Reflection on own learning.......................................... 61

Introduction............................................................................................... 61

I. Learning styles............................................................................................................. 61

 Accommodator/Activist ........................................................................................................ 62

 Diverger/reflector.................................................................................................................. 62

 Assimilator/theorist ............................................................................................................... 62

 Converger/pragmatist ............................................................................................................ 62

II. Review of learning....................................................................................................... 63

III. Master of Business Administration’s experience and learning............................... 64

IV. Conclusion.................................................................................................................... 65

Appendix.................................................................................................... 66

Appendix 1........................................................................................................................... 66

Interview questions - Wealth managers ........................................................................................ 66

The banks ...................................................................................................................................... 66

The clients..................................................................................................................................... 66

The Sales....................................................................................................................................... 66

Appendix 2........................................................................................................................... 67

Interview questions - Private banking customers.......................................................................... 67

The clients..................................................................................................................................... 67

The banks ...................................................................................................................................... 67

Bibliography.............................................................................................. 68

MBA in finance - 2013

Jean-Antoine BAUX 1

Declaration

This is to certify that I, Jean Antoine BAUX, student of Dublin Business School in

partnership with the Liverpool John Moores University, studying a Masters of Business

Administration, have submitted this dissertation on the topic “Did private wealth management

and customers‟ behavior change after the financial crisis of 2008 in France” in part fulfilment

of the requirements for the degree of Masters of Business Administration (MBA) at the

Dublin Business School.

Furthermore, I hereby certify that this dissertation is entirely based on my own work, unless

referenced in the text as a specific source and the words have been placed in inverted commas

(“”), and has not been submitted in part or in whole to any other College/University for

assessment or for award of any other degree.

Jean-Antoine BAUX

Jean-Antoine BAUX 2

Acknowledgments

During this year in Ireland, many people have contributed to my success and deserve a very

special thanks and acknowledgments.

Firstly, I would like to thank my parents and relatives for their support and constant

encouragement, and especially to my grandmother who has always been in my mind during

the time I was carrying this study.

Secondly, without naming anyone in particular, I would like to thank all my friends who have

always supported me through this study.

Finally, thanks should also be extended to the Dublin Business School, my supervisor, Mr

Michael Kealy for his valuable supervision. I would like to express my gratitude to the French

banks as Credit Agricole Sud Mediterrannee and Bnp Paribas Private Banking for their

involvement and their wealth managers who have accepted to take part of this study.