Equitable Holdings, Inc. (EQH): Business Model Canvas

Introduction

With the rapid expansion of the financial services industry, it is essential for companies to innovate and adapt to stay competitive. One such company is Equitable Holdings, Inc., a leader in its field. Operating globally, Equitable Holdings provides a wide range of financial services, including life insurance, retirement planning, and investment management. As of 2021, the financial services market is projected to grow at a CAGR of 8.6% between 2021-2026, with $22.5 trillion worth of assets under management in the year 2020.

Equitable Holdings' diversified distribution network, including retail, wholesale, and institutional channels, serves over 12 million customers worldwide, generating revenue primarily from premiums and fees generated from its life insurance and annuity products, as well as from its investment management business. This robust distribution network, coupled with its strong focus on technology innovation, has allowed Equitable Holdings to stay ahead of the curve, collaborating with leading startups and leveraging big data and machine learning to enhance its services and customer experience.

As a responsible corporate entity, Equitable Holdings has a commitment to sustainable and responsible business practices, with a strong focus on environmental, social, and governance factors (ESG). The company has also embraced impact investing, recognizing the need to create systemic change beyond traditional financial returns. In this blog post, we will outline Equitable Holdings' business model canvas, examining how the company has been able to leverage technology, innovation, and a focus on ESG practices to differentiate itself in the market and grow its business sustainably.

Key Partnerships

Equitable Holdings, Inc. (EQH) recognizes the importance of strategic partnerships to drive success and achieve competitive advantage in today's market. Our key partnerships are influential in enabling us to deliver high-quality products and services and provide the best possible outcomes for our customers.

• Insurance Agents / Brokers: One of our critical partnership segments is with insurance agents and brokers. They channel our products and services to our customers, helping to create a seamless customer experience. We work closely with them to develop customized solutions that meet the unique needs of their clients.
• Reinsurers: EQH also works closely with a select group of reinsurers to help manage risk and preserve financial strength. We tap into their expertise and leverage their products and services to better serve our customers and stakeholders.
• Service Providers: Additionally, EQH partners with a host of service providers to assist us with various operational functions. These partnerships give us greater flexibility and scalability, enabling us to better focus on our core strengths.
• Technology Partners: EQH also collaborates with technology partners to develop and enhance our digital capabilities. Through these partnerships, we access the latest technological advancements to create new products, optimize workflows, and improve customer experiences.
• Community Organizations: Finally, EQH's partnerships with community organizations enable us to make a positive impact by supporting social causes and promoting diversity and inclusivity.

By partnering with these organizations, EQH has significantly increased its market reach and enhanced its ability to deliver value to its customers. These key partnerships underpin our business growth strategy as we continue to expand our footprint in the insurance and financial services industry.

Key Activities

Equitable Holdings, Inc. (EQH) is committed to providing its clients with a comprehensive range of financial and insurance products and services. The company's key activities include:

• Investment Management: EQH manages assets totaling over $500 billion across multiple asset classes, including fixed income, equities, real estate, alternatives, and private credit. The company's investment strategy is focused on generating long-term value for its clients while managing risks and market volatility.
• Insurance: EQH offers a broad range of insurance products, including life, annuity, and retirement plans. The company's focus is on creating customized solutions that meet its clients' unique needs and enable them to achieve their financial goals. EQH is committed to providing its clients with transparent and comprehensive insurance products and services.
• Technology: EQH is leveraging technology to enhance the customer experience and streamline its operations. The company is investing in cutting-edge technology platforms and digital solutions to enable faster and more efficient service delivery. EQH is also focused on utilizing data analytics and machine learning to personalize its offerings and optimize its marketing efforts.
• Marketing and Sales: EQH has a diversified distribution network that includes independent agents, financial advisors, and direct-to-consumer channels. The company is focused on developing innovative marketing and sales strategies that leverage its brand, product offerings, and technology platforms. EQH is committed to providing its distribution partners with the resources and support they need to succeed.
• Risk Management and Compliance: EQH has a strong risk management and compliance framework in place to ensure that it meets regulatory requirements and protects its clients' interests. The company is committed to maintaining a culture of compliance and risk consciousness across its operations. EQH is also focused on implementing best practices and continuous improvement to enhance its risk management and compliance capabilities.

Through its key activities, EQH is striving to differentiate itself in the highly competitive financial services industry and provide its clients with the tools and resources they need to succeed financially.

Key Resources

In order for Equitable Holdings, Inc. to effectively carry out its business and achieve its goals, it requires certain key resources that are essential for its operations, growth and profitability. These key resources are:

• Human Resources: The company's professional staff and management team are its most valuable resource. The company attracts and retains highly-skilled and experienced professionals by providing competitive compensation packages and a positive workplace culture.
• Financial Resources: The company relies heavily on its ability to generate cash flow from its operations to finance its activities. It has access to traditional bank financing, bonds market, treasury bonds and shares sales for additional capital as needed.
• Technology Resources: In order to remain competitive in the ever-changing world of financial services, Equitable Holdings, Inc. invests heavily in technology resources. These include proprietary software, hardware, and licensed third-party software that enable efficient and accurate financial modeling, execution, and reporting for clients.
• Physical Resources: Equitable Holdings, Inc. maintains a network of modern, technologically-advanced offices with all necessary facilities such as working space, telecommunications and presentation tools, meeting rooms, and supporting infrastructure.
• Client Resources: The company's clients represent its most important resource. Equitable Holdings, Inc. commits significant resources to developing and maintaining strong relationships with its clients through its highly experienced financial advisors, broad range of financial products offerings, and excellent customer service.

These key resources are fundamental to Equitable Holdings, Inc.'s capacity to deliver financial services, build customer loyalty and maintain bottom-line profitability.

Value Propositions

• Financial Security: EQH's value proposition is to provide financial security to its customers through its range of insurance, wealth management and retirement solutions. Whether it is protecting their loved ones with life insurance or planning for their future retirement, EQH is committed to providing reliable and sustainable financial services that meet the evolving needs of its customers.
• Unmatched Expertise: EQH has over 160 years of experience in the industry and is backed by a team of highly skilled and knowledgeable professionals. It delivers tailored solutions based on a deep understanding of the needs of its customers. Its financial advisors are equipped to help customers navigate the complexities of the financial landscape and help them make informed decisions that can create lasting value.
• Innovative Technology: EQH leverages innovative technology to deliver an exceptional customer experience. Its digital solutions are designed to make it easy for customers to access and manage their accounts, track their investments, and monitor their progress towards their financial goals. EQH embraces emerging technologies to make its processes more efficient and provide better support to its customers.
• Commitment to ESG: EQH has a strong commitment to Environmental, Social, and Governance (ESG) principles. It offers a range of investment options that are aligned with ESG values to help customers build sustainable portfolios that align with their personal values. EQH also integrates ESG principles into its corporate strategy and governance, demonstrating its commitment to making a positive impact on society and the environment.
• Transparent Pricing: EQH takes pride in its transparent pricing model. It does not charge hidden fees or commissions and discloses all costs associated with its services upfront. EQH seeks to be a trusted partner that customers can rely on for honest and fair pricing.

By prioritizing financial security, expertise, technology, ESG commitment, and transparent pricing, EQH creates a value proposition that meets the diverse needs of its customers. Its solutions are designed to help customers achieve their financial goals, build long-term wealth, and provide peace of mind.

Customer Relationships

Equitable Holdings, Inc. (EQH) understands that building strong customer relationships is critical to the success of our business. We aim to provide exceptional customer service, tailored to our customers' unique needs, in order to create long-term relationships based on trust and mutual benefit. Personalized Service We believe that every customer is unique and has individual needs. Therefore, we strive to provide personalized service by identifying our customers' needs and offering customized solutions that meet and exceed their expectations. Effective Communication Open and honest communication is essential in building strong customer relationships. We are committed to communicating with our customers clearly and proactively, keeping them informed of any changes that may impact their accounts and providing them with the necessary support and guidance. Continuous Engagement We believe that continuous engagement with our customers is key to building a lasting relationship. We are committed to actively seeking feedback from our customers, understanding their evolving needs, and staying ahead of the curve in order to deliver innovative products and services that meet those needs. Online Resources We recognize that our customers expect convenient and easy access to their accounts and information. Therefore, we invest in online resources that provide our customers with 24/7 access to their accounts, enabling them to easily manage their finances and stay up-to-date on their investments. In summary, Equitable Holdings, Inc. (EQH) is committed to building strong customer relationships through personalized service, effective communication, continuous engagement, and providing access to online resources that make it easy for our customers to manage their finances.

Channels

Equitable Holdings, Inc. recognizes the importance of efficient and effective distribution channels to reach its target market. The company adopts a multi-channel approach to ensure that it reaches potential clients through various platforms, including:

• Agents: Equitable's extensive network of agents provides personalized financial advice and solutions to clients. The company continuously trains and educates its agents to offer the best possible services to clients.
• Direct-to-consumer: The company also offers online services that allow clients to purchase products directly through its website. This channel enhances reach and convenience for clients who prefer self-service solutions. Equitable Holdings, Inc. leverages technology to create user-friendly platforms and mobile applications that enable clients to access their financial information quickly and easily.
• Institutional clients: The company also serves large corporations and institutions through its institutional business channels. These channels offer tailored investment solutions and retirement benefits to employees.
• Partnerships: Equitable Holdings, Inc. collaborates with other financial institutions and companies to expand its reach and offer joint value propositions to clients. The company leverages these partnerships to cross-sell products and services and create brand awareness.

Equitable Holdings, Inc. understands that different client groups may prefer different channels, and hence the company continues to invest in improving and expanding its channels of distribution to cater to a more extensive pool of clients. Through these various channels, the company aims to foster lasting relationships with clients by providing personalized, high-quality financial solutions that meet their unique needs.

Customer Segments

Equitable Holdings, Inc. targets a wide range of customer segments across various markets. The company's primary focus is on individuals who are looking to invest their money in financial products such as mutual funds, annuities, and life insurance. Individual Customers:
Equitable provides individual customers with a range of financial products and services to help them achieve their financial goals. The company caters to individuals who are looking to invest their money for a short or long-term period, including those who are saving for college, retirement, or other personal reasons. Corporate Clients:
Equitable also offers services to corporate clients, including employer-sponsored pension plans, 401(k) plans, and other financial services. The company provides customized solutions to meet the unique needs of each corporate client, making it an attractive option for businesses seeking comprehensive financial support. Financial Advisors:
Equitable engages financial advisors and professionals as a significant portion of its customer segments. The company provides financial education, training, and support resources to financial advisors to help them better serve their clients. Financial advisors play a critical role in connecting Equitable with customers, and the company places significant emphasis on building strong relationships with these individuals. Institutional Clients:
Equitable services institutional clients such as banks, insurance companies, and other financial institutions. The company aims to provide value-added solutions to these clients by tailoring transactional capabilities, helping them navigate the regulatory environment, and offering insight into market trends. In conclusion, Equitable serves a broad range of customer segments with diverse financial needs. The company employs various strategies to ensure that it meets the unique needs of each customer segment, including customized products, education resources, and support services. Equitable's focus on customer service has positioned it as a leader in the financial services industry.

Cost Structure

For Equitable Holdings, Inc. (EQH), the key cost drivers include expenses related to sales, marketing, and advertising campaigns, product development, research and development, and technology infrastructure and maintenance. The following are some of the major cost elements that EQH incurs:

• Human Resources: EQH has a significant number of employees who work in various departments such as sales, marketing, product development, customer service, and operations. Salaries, benefits, insurance, and other employee-related expenses are a significant portion of EQH's cost structure.
• Marketing and Advertising: EQH invests a significant amount of money in marketing and advertising to promote its products and services to customers. This includes ad placements in various media channels such as TV, radio, online, and print.
• Technology Infrastructure: EQH relies on robust technology infrastructure to support its operations, customer service, and sales. This includes investing in hardware, software, and maintenance services to support its IT systems and network.
• Product Development: EQH invests in new product and service development to meet the evolving needs of customers. This includes research and development costs associated with designing and testing new products and services.
• Compliance and Regulatory Costs: EQH operates in a highly regulated industry and incurs significant compliance and regulatory costs associated with meeting regulatory requirements and adhering to industry standards.

EQH manages its cost structure carefully by implementing cost-cutting strategies, such as reducing non-essential expenses, optimizing work processes, and renegotiating vendor contracts. EQH also closely monitors and manages its budget to ensure efficient allocation of resources and maximize profitability.

Revenue Streams

Equitable Holdings, Inc. (EQH) generates revenue through various channels. Here are the detailed revenue streams that contribute to the company's success:

• Net Investment Income: As a financial services company, EQH earns revenue from the interest and dividend income generated by its investment portfolio. This revenue stream is influenced by the interest rate environment and the performance of the equity and fixed income markets.
• Asset Management Fees: EQH generates revenue by managing assets for its clients. The company earns management fees for managing institutional and retail asset portfolios. These fees are based on a percentage of the assets under management and are recurring in nature, providing a predictable revenue stream for the company.
• Annuity and Life Insurance Products: EQH offers annuity and life insurance products to clients, generating revenue from premiums paid by policyholders. These products provide protection and financial security to customers, enabling them to manage risks such as longevity or market volatility.
• Group Retirement Products: EQH offers group retirement products to organizations, generating revenue through administrative fees, investment management fees, and other charges. These products provide retirement solutions to employees, and the fees charged are based on the assets under management or the number of participants in the plan.
• Brokerage Products and Services: EQH offers brokerage products and services to clients, such as equity and fixed income securities, mutual funds, and exchange-traded funds, generating revenue through commissions and fees. These products and services enable clients to invest in the financial markets and build wealth over time.
• Other: EQH generates revenue through other sources, such as advisory fees, retirement plan administration, and other services. These revenue streams are lesser in scale, but they contribute to the company's overall revenue mix.

Overall, EQH generates revenue from a diversified mix of sources, providing stability and resilience to the business model. The company's revenue streams are structured to capture value from different client segments and geographies, providing a platform for growth and profitability over the long term.

Conclusion

Equitable Holdings, Inc. aims to become a leading provider of financial protection solutions and wealth management services for individuals, families, and businesses. Through our diversified product portfolio, innovative technologies, and exceptional customer service, we strive to meet the evolving needs and preferences of our clients, while maintaining our financial strength and agility.

Our business model canvas highlights the key resources, activities, partnerships, and revenue streams that drive our success. We leverage our brand recognition, distribution channels, and data analytics capabilities to expand our reach and enhance our offerings. We invest in our people, products, and processes to maintain our competitive edge and deliver long-term value to our stakeholders.

• Our key resources include:
• Strong brand recognition
• Access to capital
• Experienced workforce
• Our key activities include:
• Designing and developing financial protection solutions and wealth management services
• Distributing our products through various channels, including advisors, brokers, and direct-to-consumer
• Investing in technology to enhance our operational efficiency, customer experience, and data insights
• Our key partnerships include:
• Insurance carriers
• Asset managers
• Technology vendors
• Our key revenue streams include:
• Premiums and fees from insurance and annuity products
• Asset-based fees from wealth management services
• Commission-based fees from distribution partners

Overall, Equitable Holdings, Inc. is well-positioned to capitalize on the growing demand for financial protection and wealth management services, leveraging our expertise, scale, and innovation capabilities to create value for our clients and shareholders.