WSFS Financial Corporation (WSFS): Business Model Canvas [11-2024 Updated]

Welcome to a deep dive into the Business Model Canvas of WSFS Financial Corporation (WSFS), a dynamic player in the banking sector. This analysis reveals how WSFS leverages key partnerships, a robust customer relationship strategy, and diverse revenue streams to deliver comprehensive financial services. Join us as we explore the intricate components that define their business model and drive their success in the competitive financial landscape.

WSFS Financial Corporation (WSFS) - Business Model: Key Partnerships

Collaborations with ATM networks and service providers

WSFS Financial Corporation's Cash Connect® business collaborates with several major ATM networks and service providers. This partnership allows WSFS to manage approximately $1.6 billion in total cash and service around 32,400 non-bank ATMs and 9,700 smart safes across the United States. The Cash Connect® segment provides ATM vault cash, smart safe services, and other cash logistics services, which significantly contribute to the bank's noninterest income.

Partnership Type	Details	Financial Impact
ATM Networks	Collaboration with major ATM networks for cash logistics	Approximately $1.6 billion managed in total cash
Service Providers	Partnerships with manufacturers for smart safes and cash management	Supports over 32,400 non-bank ATMs
Revenue Generation	Fee income from ATM operations and cash management services	Contributed $29.8 million to noninterest income in 2024

Partnerships with mortgage companies like Spring EQ

WSFS has established a strategic partnership with Spring EQ, a mortgage company specializing in home equity loans. This collaboration has proven financially beneficial, with WSFS recognizing approximately $4.3 million in revenue from this partnership during the nine months ended September 30, 2024. This includes a $2.3 million annual earnout and $2.0 million in post-close distributions related to the sale of equity investments in Spring EQ.

Partnership	Revenue Recognition	Details
Spring EQ	$4.3 million	Includes $2.3 million annual earnout and $2.0 million in distributions
Impact on Loan Portfolio	Contributes to the growth of home equity loans	Supports overall residential mortgage offerings
Strategic Importance	Enhances WSFS's position in mortgage and refinancing market	Increases customer base and product offerings

Alliances with investment management firms

WSFS has formed alliances with various investment management firms to enhance its Wealth Management services. These partnerships enable WSFS to offer a comprehensive suite of investment products and advisory services. As of September 30, 2024, WSFS's Wealth Management segment reported $87.2 billion in assets under management (AUM) and assets under administration (AUA), reflecting the effectiveness of these strategic alliances.

Partnership Type	Assets Managed	Services Offered
Investment Management Firms	$87.2 billion	Investment management, trust services, and advisory services
Client Base	High-net-worth individuals and institutions	Customized investment strategies and financial planning
Revenue Model	Fees based on AUM	Generates significant noninterest income

WSFS Financial Corporation (WSFS) - Business Model: Key Activities

Offering commercial and consumer banking services

WSFS Financial Corporation provides a range of commercial and consumer banking services. As of September 30, 2024, the net loans and leases held for investment amounted to $13.1 billion, reflecting an increase of $541.5 million since December 31, 2023. This growth was primarily attributed to increases in consumer loans, owner-occupied commercial loans, and commercial and industrial loans.

The bank's total deposits reached approximately $18.2 billion as of September 30, 2024. Noninterest-bearing deposits were $4.7 billion, while interest-bearing deposits amounted to $13.5 billion.

WSFS operates 114 offices across Pennsylvania, Delaware, New Jersey, Florida, Nevada, and Virginia, enhancing its reach in providing banking services.

Wealth management and investment advisory services

WSFS's Wealth Management division offers comprehensive planning and advisory services, investment management, and trust services. As of September 30, 2024, the business managed assets under management (AUM) and assets under administration (AUA) totaling $87.2 billion.

The Wealth Management segment generated significant revenue through various channels, including a percentage fee based on account assets and fee-only arrangements. The revenue from Wealth Management for the nine months ended September 30, 2024, was approximately $125.6 million.

Key services include financial planning, customized investment strategies, and various brokerage products. The company has also integrated its trust accounting system and client portal as part of its ongoing service enhancements.

Cash logistics services through Cash Connect®

WSFS operates Cash Connect®, a cash logistics business that provides ATM vault cash, smart safe services, and other cash management solutions. As of September 30, 2024, the Cash Connect® segment contributed significantly to noninterest income, which increased by $17.5 million compared to the previous year.

The segment has seen growth due to the addition of bailment customers and strategic partnerships within the ATM industry. Cash Connect® serves both WSFS-branded and non-bank ATMs across the nation.

For the nine months ended September 30, 2024, Cash Connect® generated approximately $89.2 million in revenue, highlighting its importance to WSFS's overall financial performance.

Key Activity	Financial Performance (2024)	Growth Metrics
Commercial and Consumer Banking	$13.1 billion in net loans	Increase of $541.5 million since December 2023
Wealth Management	$87.2 billion in AUM and AUA	$125.6 million in revenue for nine months
Cash Connect®	$89.2 million in revenue	Increase in noninterest income by $17.5 million

WSFS Financial Corporation (WSFS) - Business Model: Key Resources

A network of 114 banking offices

As of September 30, 2024, WSFS Financial Corporation operates a network of 114 banking offices across several states, including Pennsylvania, Delaware, New Jersey, Florida, Nevada, and Virginia. This extensive branch network supports the company's retail and commercial banking operations.

Strong capital base with a total equity of $2.67 billion

WSFS has established a robust financial foundation with a total equity of $2.67 billion as of September 30, 2024. The company maintains strong capital ratios, with common equity Tier 1 capital at 13.46% and total risk-based capital at 14.71%. This capital strength is essential for sustaining operations and supporting growth initiatives.

Financial Metric	Value
Total Equity	$2.67 billion
Common Equity Tier 1 Capital Ratio	13.46%
Total Risk-Based Capital Ratio	14.71%

Advanced technology and digital platforms for banking services

WSFS Financial Corporation has invested significantly in advanced technology and digital platforms to enhance its banking services. The company utilizes a comprehensive suite of online and mobile banking solutions to provide customers with seamless access to their accounts and financial services. This digital transformation is aimed at improving customer experience and operational efficiency.

As of September 30, 2024, WSFS reported a substantial increase in noninterest income driven by its digital banking initiatives, including growth in Cash Connect® services, which manage approximately $1.6 billion in total cash and service around 32,400 non-bank ATMs and 9,700 smart safes. The integration of technology in banking operations not only boosts customer satisfaction but also supports the company's revenue growth.

Digital Banking Metric	Value
Total Cash Managed by Cash Connect®	$1.6 billion
Non-Bank ATMs Serviced	32,400
Smart Safes Managed	9,700

WSFS Financial Corporation (WSFS) - Business Model: Value Propositions

Comprehensive financial solutions for individuals and businesses

WSFS Financial Corporation offers a wide range of financial products designed to meet the needs of both individual and commercial customers. As of September 30, 2024, the total loan and lease portfolio was approximately $13.3 billion, with a substantial focus on commercial relationships and customer-generated deposits.

The company has built a robust commercial loan portfolio of about $10.2 billion, which includes various lending products such as:

• Commercial loans and leases: $5.2 billion
• Residential mortgage loans: $70.1 million
• Owner-occupied commercial loans: $117.6 million
• Consumer loans: $125.9 million.

Additionally, WSFS provides services such as retail securities brokerage through its branches and mortgage services through WSFS Mortgage®, which specializes in residential mortgage and refinancing solutions.

Personalized wealth management services for high-net-worth clients

WSFS's Wealth Management division provides tailored financial planning and investment management services to affluent and high-net-worth individuals. As of September 30, 2024, the combined assets under management (AUM) and assets under administration (AUA) reached approximately $87.2 billion.

Key services include:

• Investment management
• Trust services
• Financial planning
• Customized investment strategies

Revenue generation for this segment comes from fee-based arrangements, including:

• Percentage fees based on account assets
• Fee-only services such as estate administration and trust tax planning.

Reliable cash management services for retail and commercial clients

WSFS's Cash Connect® division specializes in cash logistics services, managing approximately $1.6 billion in cash and servicing around 32,400 non-bank ATMs and 9,700 smart safes nationwide. The services provided include:

• ATM vault cash services
• Smart safe management
• Online reporting and cash management
• Predictive cash ordering and reconcilement services

In the three months ended September 30, 2024, noninterest income from Cash Connect® increased significantly, contributing to an overall noninterest income of $90.2 million, up from $72.7 million in the same period the previous year.

Financial Metric	Value (2024)	Value (2023)
Total Loan and Lease Portfolio	$13.3 billion	$12.8 billion
Commercial Loans	$10.2 billion	$9.8 billion
Assets Under Management (AUM) and Administration (AUA)	$87.2 billion	$80.0 billion
Cash Managed by Cash Connect®	$1.6 billion	$1.5 billion
Noninterest Income (Q3)	$90.2 million	$72.7 million

WSFS Financial Corporation (WSFS) - Business Model: Customer Relationships

Focus on community engagement and customer service

WSFS Financial Corporation emphasizes community engagement as a core element of its customer relationships. As of September 30, 2024, the company had a total of 114 offices across Pennsylvania, Delaware, New Jersey, Florida, Nevada, and Virginia . During the third quarter of 2024, WSFS Associates surpassed the Bank's volunteer commitment goal with over 24,000 hours of service to various community organizations . This commitment reflects a strong focus on building relationships with customers through active participation in the communities they serve.

Personalized advisory services in wealth management

WSFS provides personalized advisory services through its Wealth Management division, which reported $87.2 billion in Assets Under Management (AUM) and Assets Under Administration (AUA) as of September 30, 2024 . The Wealth Management services include investment management, trust services, and financial planning tailored to the needs of individual, corporate, and institutional clients. This personalized approach is critical for retaining high-net-worth clients and enhancing customer loyalty.

Regular communication through digital channels and in-person meetings

WSFS maintains regular communication with its customers through both digital channels and in-person meetings. The company has seen significant growth in its digital banking services, aligning with the increasing demand for online banking solutions. As of September 30, 2024, WSFS reported a noninterest income of $90.2 million for the third quarter, an increase of $17.5 million from the previous year, driven largely by the growth in digital banking and service lines . Furthermore, the integration of a new trust accounting system and client portal is aimed at enhancing client interactions and service efficiency .

Metric	Value (as of September 30, 2024)
Total Number of Offices	114
Assets Under Management (AUM) & Assets Under Administration (AUA)	$87.2 billion
Volunteer Hours Surpassed	24,000 hours
Wealth Management Noninterest Income (Q3 2024)	$90.2 million
Increase in Noninterest Income Year-over-Year (Q3 2024)	$17.5 million

WSFS Financial Corporation (WSFS) - Business Model: Channels

Branch network across Pennsylvania, Delaware, and New Jersey

As of September 30, 2024, WSFS Financial Corporation operates a total of 114 branches. These branches are strategically located as follows:

• 57 branches in Pennsylvania
• 39 branches in Delaware
• 14 branches in New Jersey
• 2 branches in Florida
• 1 branch in Nevada
• 1 branch in Virginia

The branch network plays a crucial role in WSFS's strategy to provide personalized banking services and strengthen community relationships, which is essential for customer acquisition and retention.

Online banking platforms and mobile applications

WSFS has developed robust online banking platforms and mobile applications to cater to the growing demand for digital banking services. As of September 30, 2024, the online banking platform has seen a significant increase in user engagement:

• Online banking users: approximately 300,000 active users
• Mobile app downloads: over 150,000

The mobile application offers features such as account management, bill payments, and mobile deposits, enhancing customer convenience and accessibility. The digital banking services contribute significantly to the overall customer experience and operational efficiency.

Direct marketing and community events to attract customers

WSFS actively engages in direct marketing and community events to attract new customers and retain existing ones. In 2024, the company allocated approximately $1.5 million towards community engagement initiatives, including:

• Hosting local community events: 30 events held across various locations
• Direct marketing campaigns: Reaching an estimated 500,000 households

These initiatives not only promote the WSFS brand but also enhance customer loyalty and community involvement.

Channel Type	Details	Statistics
Branch Network	Locations	114 branches across multiple states
Online Banking	Active Users	300,000 active online banking users
Mobile Application	Downloads	150,000 downloads
Community Events	Investment	$1.5 million allocated for community initiatives
Direct Marketing	Target Reach	500,000 households targeted

WSFS Financial Corporation (WSFS) - Business Model: Customer Segments

Individual consumers seeking banking and investment services

WSFS Financial Corporation serves individual consumers by offering a range of banking and investment services. As of September 30, 2024, the company reported total assets of approximately $20.9 billion, with a significant portion derived from consumer deposits. The estimated uninsured deposits were $6.1 billion, representing 37% of total customer deposits .

Key services include personal checking and savings accounts, mortgages, and consumer loans. The retail banking segment had a total loan and lease portfolio of $13.3 billion, which includes a variety of consumer loan products . The company's consumer banking services are accessible through 114 offices across several states, including Pennsylvania, Delaware, New Jersey, Florida, Nevada, and Virginia .

Small to medium-sized enterprises needing financing solutions

WSFS targets small to medium-sized enterprises (SMEs) by providing tailored financing solutions. The commercial loan and lease portfolio stands at $10.2 billion, with a focus on flexibility and high service levels typically associated with community banks . The company emphasizes building relationships with local businesses to support their financing needs.

Additionally, WSFS offers commercial banking products, including lines of credit, term loans, and equipment financing through its subsidiary, NewLane Finance, which specializes in small business leases . As of September 30, 2024, the company reported significant growth in its commercial and industrial loans, amounting to $99.2 million .

High-net-worth individuals requiring wealth management services

WSFS provides comprehensive wealth management services to high-net-worth individuals and institutions. The wealth management division reported assets under management (AUM) and assets under administration (AUA) totaling $87.2 billion as of September 30, 2024 . Services include investment management, financial planning, estate planning, and trust services, primarily offered through the Bryn Mawr Trust brand.

The wealth management business generates revenue through a combination of fees based on assets under management, fee-only arrangements, and interest income from various financial products . This segment also includes a multi-family office, Powdermill, which focuses on providing tailored solutions to affluent individuals and families .

Customer Segment	Services Offered	Portfolio Size (as of Sept 30, 2024)	Assets Under Management (AUM)	Key Statistics
Individual Consumers	Checking/Savings Accounts, Mortgages, Consumer Loans	$13.3 billion	-	114 Offices across multiple states
Small to Medium-Sized Enterprises	Term Loans, Lines of Credit, Equipment Financing	$10.2 billion	-	99.2 million in Commercial and Industrial Loans
High-Net-Worth Individuals	Investment Management, Financial Planning, Trust Services	-	$87.2 billion	Bryn Mawr Trust brand for wealth services

WSFS Financial Corporation (WSFS) - Business Model: Cost Structure

Operational costs including salaries and benefits

For the nine months ended September 30, 2024, WSFS Financial Corporation reported noninterest expenses amounting to $468.6 million, an increase from $414.0 million during the same period in 2023. This increase was primarily driven by higher salaries and benefits, reflecting annual performance-based increases and talent additions in key business lines. Specifically, salaries and benefits accounted for a substantial portion of the operational costs, contributing to approximately 71.6% of total noninterest expenses.

Marketing and customer acquisition expenses

WSFS Financial Corporation has been actively investing in marketing and customer acquisition strategies. For the nine months ended September 30, 2024, marketing expenses were reported at approximately $30 million, reflecting a strategic focus on expanding customer reach and enhancing brand visibility. This represents an increase of 15% compared to $26 million for the same period in 2023. The company has utilized various channels including digital marketing, community engagement, and sponsorships to attract new customers.

Technology and infrastructure investments

WSFS has made significant investments in technology and infrastructure to support its growth strategies. In 2024, capital expenditures related to technology improvements were reported at $3.6 million, with a focus on upgrading digital banking platforms and enhancing cybersecurity measures. This is a notable increase from $1.1 million in capital expenditures for technology in 2023. Additionally, ongoing operational expenses for technology maintenance and upgrades are estimated to be around $25 million annually, reflecting the company's commitment to innovation and efficiency.

Cost Category	2024 Amount (in millions)	2023 Amount (in millions)	Percentage Change
Noninterest Expenses	$468.6	$414.0	13.3%
Marketing Expenses	$30.0	$26.0	15.4%
Technology Investments	$3.6	$1.1	227.3%

WSFS Financial Corporation (WSFS) - Business Model: Revenue Streams

Interest income from loans and leases

In the nine months ended September 30, 2024, WSFS Financial Corporation reported total interest income of $800.2 million. This figure includes:

• Interest and fees on loans and leases: $691.5 million
• Interest on mortgage-backed securities: $77.0 million
• Interest and dividends on investment securities (taxable): $2.1 million
• Interest and dividends on investment securities (tax-exempt): $4.5 million
• Other interest income: $25.2 million

The interest expense for the same period was $273.0 million, leading to a net interest income of $527.2 million.

Noninterest income from fees and services

Noninterest income for WSFS Financial Corporation for the nine months ended September 30, 2024, was reported at $257.6 million, marking an increase of $54.9 million from $202.7 million in the same period of 2023. This increase was driven by:

• Cash Connect®: $29.8 million
• Wealth Management fees: $11.1 million
• Partnership revenue from Spring EQ: $4.3 million
• Mortgage banking activities: $2.3 million
• Capital markets income: $2.0 million

During the three months ended September 30, 2024, noninterest income was $90.2 million, an increase of $17.5 million from $72.7 million in the same quarter of 2023.

Revenue Source	Q3 2024 (in millions)	Q3 2023 (in millions)	YTD 2024 (in millions)	YTD 2023 (in millions)
Cash Connect®	$31.8	$18.4	$89.2	$59.4
Wealth Management	$37.0	$33.1	$108.3	$95.6
Partnership Revenue (Spring EQ)	$2.3	N/A	$4.3	N/A
Mortgage Banking Activities	$2.3	N/A	$2.3	N/A
Capital Markets Income	$2.0	N/A	$2.0	N/A

Wealth management fees from asset management services

As of September 30, 2024, WSFS Financial Corporation's Wealth Management business had assets under management (AUM) and assets under administration (AUA) totaling $87.2 billion. The revenue generated from this segment included:

• Investment management and fiduciary income for the nine months ended September 30, 2024: $107.2 million
• Wealth Management fees for the same period: $11.1 million

These figures indicate a robust growth in the Wealth Management segment, contributing significantly to the overall noninterest income.

Updated on 16 Nov 2024

Resources:

1. WSFS Financial Corporation (WSFS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WSFS Financial Corporation (WSFS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View WSFS Financial Corporation (WSFS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.