Analysing alternatives in financial services for wealth management banks: the analytic network process and the balanced scorecard approach

Abstract

The main purpose of this study is to evaluate business performance of wealth management (WM) banks by applying the balanced scorecard (BSC) and the analytic network process (ANP). In the proposed model, the dimensions of financial services for WM banks have been taken from four perspectives derived from the BSC approach, viz. finance, customer, internal business and learning and growth. The proposed approach, therefore, links the financial and non-financial, tangible and intangible and internal and external factors, thus providing a holistic framework for the evaluation of an alternative for WM banks. The ability of ANP to consider interdependencies among and between levels of decision makes it a multi-criteria decision-making tool. Thus, a combination of BSC- and ANP-based approach proposed in this paper can provide decision makers with a more balanced, realistic and accurate representation of the challenge of conducting business performance for WM banks.