Track: Financial Engineering

Abstract

Various research areas use models to aid business decisions, but what is done less frequently is investigating and determining what business considerations should be used in building those models and why. Therefore, this paper focuses on discussing considerations that can have a potential impact on the medium to long-term business decisions made in the financial industry, with specific regards to Independent Financial Advisors (IFAs) in South Africa. Preliminary considerations are identified from literature including interviews with industry experts, business and academic literature as well as regulatory requirements. The preliminary considerations are tested and validated by four Financial Services Providers that differ in their business considerations.  From the initial consideration, 11 primary and 8 secondary considerations were identified and discussed. Secondary considerations were identified as part of future research opportunities on the topic that can be completed when more quantitative data-gathering is completed. This study provides new academic insights into the complexity of the financial industry and the opportunities it holds.