Fidelity Investments Business Model Canvas

Fidelity Investments relies on key partnerships with research and data providers to deliver high-quality insights. These collaborations are crucial for informed investment decisions, offering clients valuable market analysis and forecasts. Fidelity leverages these external resources to provide timely, well-informed investment advice. In 2024, the firm's research budget for external data and analysis reached $750 million.

• Leading providers include S&P Global and Refinitiv.
• Partnerships enhance market analysis capabilities.
• Data integration improves investment recommendations.
• Fidelity's focus is on data-driven decisions.

Fidelity Investments collaborates with wealth management firms, such as Envestnet, to offer sophisticated platforms and solutions designed for financial advisors, supporting comprehensive wealth management strategies. These strategic alliances strengthen Fidelity's capacity to provide extensive support to wealth management firms, including technology, service, and investment consulting. These partnerships help Fidelity broaden its market presence and improve the services delivered to advisors and their clients. In 2024, Fidelity's assets under administration (AUA) reached over $12.1 trillion, demonstrating the scale of its partnerships and services.

• Partnerships with wealth management firms enhance Fidelity's service offerings.
• Collaborations with firms like Envestnet expand Fidelity's reach.
• Fidelity's AUA exceeded $12.1 trillion in 2024, reflecting partnership impact.
• These alliances support advisors and their clients.

Human capital is critical for Fidelity Investments, encompassing skilled investment professionals, financial advisors, and technology experts. These individuals are essential for managing assets, providing advice, and driving innovation within the company. Fidelity's workforce is diverse, with expertise across finance, technology, and customer service. The company invested $650 million in employee training and development in 2023.

• $650 million invested in employee training and development in 2023.
• Employs over 74,000 associates globally.
• Offers extensive training programs to enhance employee skills.
• Focuses on employee retention and satisfaction.

Fidelity Investments relies heavily on data and analytics to drive its business. Access to comprehensive data and sophisticated analytics tools is crucial for making informed investment decisions, managing risk effectively, and tailoring customer experiences. Fidelity gathers and analyzes a vast amount of data on market trends, economic indicators, and customer behavior. This data fuels the development of investment strategies, risk management practices, and personalized client advice.

• In 2024, Fidelity's assets under management (AUM) were approximately $4.9 trillion.
• Fidelity processes millions of transactions daily, generating substantial data.
• The firm uses advanced AI to analyze data for investment insights.
• Customer data helps personalize services, enhancing engagement.

Fidelity excels in customer relationships via extensive educational resources. They offer articles, videos, webinars, and seminars to boost financial literacy. These resources cover investing, retirement, and wealth management. This commitment empowers customers to manage their finances. In 2024, Fidelity's educational content saw a 15% increase in user engagement.

• 15% increase in user engagement for educational content in 2024.
• Offers articles, videos, webinars, and seminars.
• Topics include investing, retirement, and wealth management.
• Aims to empower customers financially.

Fidelity fosters community engagement through online platforms, social media, and events. This approach strengthens customer bonds and gathers insights for product enhancement. Community interaction is a key element in Fidelity's customer strategy, supporting its brand. Fidelity's active social media presence, with over 1 million followers, shows its commitment. Community engagement is vital for gathering customer feedback.

• Fidelity's online forums and social media platforms host thousands of discussions monthly.
• Community events, including webinars and local workshops, attract thousands of participants annually.
• Customer feedback gathered through these channels influences product development and service improvements.
• Fidelity's customer satisfaction scores consistently rank above industry averages, reflecting the success of its community engagement efforts.

Fidelity caters to institutional clients like pension funds and endowments, offering tailored investment solutions. These clients, managing substantial and intricate portfolios, rely on Fidelity's specialized expertise. This segment is a key revenue driver for Fidelity, fueling its growth trajectory. The institutional arm provides high-level services, meeting complex financial needs.

• In 2024, Fidelity's institutional assets under management (AUM) are expected to be a significant portion of its total AUM.
• Customized investment strategies are a hallmark of Fidelity's institutional services.
• Fidelity's institutional business contributes substantially to its overall financial performance.
• The segment's growth is supported by strong client relationships.

Fidelity Investments caters to financial advisors, offering a comprehensive suite of tools and resources. This support allows advisors to manage client portfolios effectively and expand their businesses. These advisors include independent advisors and RIAs, representing a significant distribution channel. Fidelity's commitment to advisors is a crucial part of its market strategy.

• Fidelity's advisor solutions serve over 15,000 firms.
• Assets under administration for Fidelity's advisor solutions were over $4 trillion in 2024.
• Fidelity provides advisors with access to its investment platform, research, and technology.

Fidelity generates substantial revenue from wealth management fees. These fees cover financial planning, investment advice, and estate planning services offered to high-net-worth clients. The fees are usually a percentage of assets under management (AUM). In 2024, Fidelity's AUM reached trillions, driving significant revenue from this segment.

• Fees based on AUM are a core revenue driver.
• Wealth management services cater to affluent clients.
• Revenue is influenced by market performance and client assets.
• Fidelity's AUM grew significantly in 2024.

Fidelity generates interest income through various financial activities. These include securities lending, margin lending, and other brokerage and investment operations. This revenue stream utilizes Fidelity's capital and customer assets. Interest income fluctuates based on market conditions and interest rates.

• Securities lending allows Fidelity to generate income by lending out securities held in customer accounts.
• Margin lending involves Fidelity providing loans to customers who use their investments as collateral.
• Interest rates directly influence the profitability of these activities, with higher rates generally leading to increased income.
• Fidelity's interest income is a significant component of its overall revenue, contributing to its financial stability.