Wealth Management Market Report
Wealth Management Market by Advisory Type (Human Advisory, Robo Advisory, and Hybrid Advisory), Services (Asset Management, Financial Planning, Tax Planning, Estate Planning, and Others (Risk, Compliance and Performance Management)), Providers (Banks, Investment Management Firms, and Brokerage Firms), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
Global Wealth Management Market Analysis
The global wealth management market size is predicted to garner a revenue of $850.90 billion in the 2021–2028 timeframe, growing from $498.70 billion in 2020, at a healthy CAGR of 7.1%.
The emergence of FinTechs (financial technology) has largely disrupted the wealth management industry, with major benefits such as assisting in the elimination of financial stress and the creation of financial plans, as well as the widespread adoption of digitalized offerings, all contributing to market growth.
However, lack of price transparency and increasing fees, as well as government-imposed rigorous rules and regulations for wealth management organizations, are some of the challenges limiting the market expansion.
According to the regional analysis of the market, the Asia-Pacific wealth management market share is anticipated to grow at a CAGR of 8.4%, by generating a revenue of $289.22 billion during the review period.
Wealth Management Market Overview
Clients' demands are addressed through wealth management, which is an investment advisory service. Money management services give a comprehensive service to their clients in order to help them maintain and build their wealth. It offers extensive research-based advice as well as convenient and tailored investment implementation. It entails developing plans to achieve specific financial long - term goals, retirement planning, estate & legal planning, accounting & tax services, and generally offers a customized program under the wealth services portfolio. These services are usually provided to high-net-worth individuals (HNIs) who have a dedicated wealth manager who makes fund allocation recommendations to the clients.
Covid-19 Impact on Wealth Management Market
In March 2020, the World Health Organization declared COVID-19 as a pandemic, which resulted in restrictions on travel and disturbances in financial markets, as well as negatively impacted supply chains and production levels. COVID-19 has sparked a public health catastrophe that has impacted practically every area of people's lives around the world, as well as put the global economy on shaky ground. Due to the economic recession, instability in global financial sectors, and a very unpredictable market, the COVID-19 pandemic has a negative impact on the wealth management market demand. Investors and wealth management organizations were both affected by the pandemic, and investors' existing assets were directly impacted. Furthermore, organizations with larger customer bases have relied on technological means to engage with their clients, such as artificial intelligence (AI) or social media, which has posed a challenge to wealth management firms. As a result, demand for wealth management products has plummeted as a result of the worldwide health crisis.
Technological Advancements are Anticipated to Drive the Market Growth
The expansion of the wealth management market has been fueled by the usage of new technologies such as chatbots, IoT, AI, and big data analytics. Furthermore, as the world becomes more digital, wealth management firms are preparing to invest more heavily in customer involvement by offering digital and voice-enabled assistants. Furthermore, wealth management organizations frequently employ chatbots, which are software tools that conduct on-line chat conversations, because they provide a more personalized and user-friendly experience than mobile apps. Chatbots can also answer queries, monitor transactions, place orders, and conduct screening activities remotely thanks to their natural language processing and machine learning capabilities. Implementing and investing in technology allow wealth managers to stay competitive, gain a deeper understanding of the goods and services they offer, and increase operational efficiency in both the front and back offices.
To know more about global wealth management market trends, get in touch with our analysts here.
Lack of Pricing Transparency and Trust Might Restrain the Market Growth
When it comes to evaluating and selecting wealth managers, transparency in pricing and competitive fees are two of the most significant criteria for clients. For example, according to Vestmark, Inc., a prominent provider of wealth management solutions and services in the United States, 45% of clients do not trust their advisors when it comes to charging fees for asset management and are unhappy with the pricing structure supplied by wealth managers. As a result, market development is projected to be constrained by a lack of pricing transparency and higher fees for wealth management services.
Focus on Hybrid Advisory is Expected to Increase the Opportunities of Wealth Management Market
Wealth management organizations are increasingly providing hybrid services to their clients around the world, including standardized and individualized guidance. The need for standardization and customization of advice is mostly driven by consumer need for consistent and reliable answers. Wealth management organizations are creating computer-driven analyses in this area in order to provide standardized advisory services while also keeping granularity in their offers with bespoke solutions.
To know more about global wealth management market opportunities, get in touch with our analysts here.
Wealth Management Market
By Advisory type
Source: Research Dive Analysis
The human advisory sub-segment is predicted to have a dominating market share in the global market and register a revenue of $516.67 billion during the forecast period. Because one may not always have the time to monitor and review investment performance, a financial advisor can assist. Regular portfolio monitoring is required to ensure that investments are aligned with financial objectives. Human advisors provide several advantages, including emotional sensitivity, flexibility, responsibility, and the capacity to provide customized services.
Wealth Management Market
Source: Research Dive Analysis
The asset management sub-segment is anticipated to generate highest revenue during the forecast period. It is predicted that the market shall generate a revenue of $224.92 billion by 2028, growing from $142.35 billion in 2020, with a CAGR of 7.2%. Organizations now have a plethora of options for improving their client relationships because of digitization. Asset-intensive businesses have learned that, in the face of increasing competition, tackling the difficulties associated in their management is critical to their success or failure. As a result, some asset-intensive firms are investing heavily in advanced and creative solutions to drastically modify and update their operating processes.
Wealth Management Market
Source: Research Dive Analysis
The banks sub-segment is anticipated to have the fastest market growth during the forecast period. It is predicted that the market shall generate a revenue of $439.6 billion by 2028, growing from $251.65 billion in 2020, with a CAGR of 7.4%. Over the forecast period, the global economy is likely to develop, and banks are expected to play a vital role in managing individuals' growing assets and wealth. Furthermore, private banking is utilizing wealth management software to provide a client-centric strategy. Individuals' financial assets can also be managed by banks from any location.
Wealth Management Market
Source: Research Dive Analysis
The Market for Wealth Management in Asia-Pacific to be the Fastest Growing
Asia-Pacific is anticipated to be the fastest growing market during the forecast time period and reach $289.22 billion by 2028, with a CAGR of 8.4%. Due to the increased adoption of digital platforms, the region is likely to provide growth possibilities for private wealth management. Technologically knowledgeable customers can use robo advising solutions to efficiently meet their investing needs thanks to the mix of novel data and powerful algorithms. Furthermore, wealth management software companies in emerging economies such as China and India are likely to benefit from the growing number of small and medium businesses in the region.
Competitive Scenario in the Global Wealth Management Market
Product launches and mergers & acquisitions are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading wealth management market players are Bank of America Corporation, BNP Paribas, Charles Schwab & Co., Inc., Citigroup Inc., CREDIT SUISSE GROUP AG, Goldman Sachs, JPMorgan Chase & Co., Julius Baer Group, Morgan Stanley, and UBS.
Porter’s Five Forces Analysis for the Global Wealth Management Market:
- Bargaining Power of Suppliers: Wealth Management market contains huge concentration of distributors & suppliers and therefore, the distributors & suppliers’ control is predicted to be reasonable, resulting in moderate bargaining power of dealers.
Thus, the bargaining power of the suppliers is considered to be moderate.
- Bargaining Power of Buyers: Buyers might have great bargaining power, significantly because of high players functioning in the mobile wallet market.
Therefore, the bargaining power of the buyer is high.
- Threat of New Entrants: Wealth management Companies entering the market are adopting technological innovations to attract clients. But since the investment cost is high,
the threat of the new entrants is moderate.
- Threat of Substitutes: There are fewer product alternatives for wealth management. For instance, asset management.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Bank of America Corporation, BNP Paribas, and Charles Schwab & Co., Inc. These companies are strengthening their footprint worldwide.
Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Advisory Type
Segmentation by Services
Segmentation by Providers
Key Companies Profiled
Q1. What is the size of the global wealth management market?
A. The size of the global wealth management market was over $498.70 billion in 2020 and is projected to reach $850.90 billion by 2028.
Q2. Which are the major companies in the wealth management market?
A. Citigroup Inc., CREDIT SUISSE GROUP AG, and Goldman Sachs are some of the key players in the global wealth management market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific wealth management market?
A. Asia-Pacific wealth management market is anticipated to grow at 8.4% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Technological development and strategic partnerships are the key strategies opted by the operating companies in this market.
Q6. What is wealth management in simple words?
A. Wealth management is an area of financial services that deals with affluent clients' investing needs. These are specialized advising services that cater to affluent clients' money management demands.
Q7. What is wealth management example?
A. An insurance business, for example, might describe its agents as providing wealth management rather than selling insurance.
Q8. What is a wealth management role?
A. A wealth manager advises high-net-worth clients on financial matters. Asset managers help people with financial planning, investment management, and wealth preservation and generation.
Q9. How does wealth management make money?
A. A wealth management adviser uses a variety of financial disciplines to manage a wealthy client's money as a package of services, including financial and accounting services, tax services, investment advice, legal or estate planning, and retirement planning.
Q10. How do wealth managers get paid?
A. Wealth managers, like most financial consultants, make money by taking a percentage of the assets they manage.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
2.2.By Advisory type trends
2.3.By Service Type trends
2.4.By Providers trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.8.1.by Advisory type
3.8.2.by Service Type
3.9.Market value chain analysis
3.9.1.Stress point analysis
3.9.2.Raw material analysis
220.127.116.11.Raw material suppliers
4.Wealth Management Market, by Advisory type
4.1.1.Market size and forecast, by region, 2020-2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.1.Market size and forecast, by region, 2020-2028
4.2.2.Comparative market share analysis, 2020 & 2028
4.3.1.Market size and forecast, by region, 2020-2028
4.3.2.Comparative market share analysis, 2020 & 2028
5.Wealth Management Market, by Service Type
5.1.1.Market size and forecast, by region, 2020-2028
5.1.2.Comparative market share analysis, 2020 & 2028
5.2.1.Market size and forecast, by region, 2020-2028
5.2.2.Comparative market share analysis, 2020 & 2028
5.3.1.Market size and forecast, by region, 2020-2028
5.3.2.Comparative market share analysis, 2020 & 2028
5.4.1.Market size and forecast, by region, 2020-2028
5.4.2.Comparative market share analysis, 2020 & 2028
5.5.1.Market size and forecast, by region, 2020-2028
5.5.2.Comparative market share analysis, 2020 & 2028
6.Wealth Management Market, by Technology
6.1.1.Market size and forecast, by region, 2020-2028
6.1.2.Comparative market share analysis, 2020 & 2028
6.2.Investment Management Firms
6.2.1.Market size and forecast, by region, 2020-2028
6.2.2.Comparative market share analysis, 2020 & 2028
6.3.1.Market size and forecast, by region, 2020-2028
6.3.2.Comparative market share analysis, 2020 & 2028
7.Wealth Management Market, by Region
7.1.1.Market size and forecast, by Advisory type, 2020-2028
7.1.2.Market size and forecast, by Service Type, 2020-2028
7.1.3.Market size and forecast, by Providers, 2020-2028
7.1.4.Market size and forecast, by Country, 2020-2028
7.1.5.Comparative market share analysis, 2020 & 2028
18.104.22.168.Market size and forecast, by Advisory type, 2020-2028
22.214.171.124.Market size and forecast, by Service Type, 2020-2028
126.96.36.199.Market size and forecast, by Providers, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Advisory type, 2020-2028
220.127.116.11.Market size and forecast, by Service Type, 2020-2028
18.104.22.168.Market size and forecast, by Providers, 2020-2028
22.214.171.124.Comparative market share analysis, 2020 & 2028
126.96.36.199.Market size and forecast, by Advisory type, 2020-2028
188.8.131.52.Market size and forecast, by Service Type, 2020-2028
184.108.40.206.Market size and forecast, by Providers, 2020-2028
220.127.116.11.Comparative market share analysis, 2020 & 2028
7.2.1.Market size and forecast, by Advisory type, 2020-2028
7.2.2.Market size and forecast, by Service Type, 2020-2028
7.2.3.Market size and forecast, by Providers, 2020-2028
7.2.4.Market size and forecast, by country, 2020-2028
7.2.5.Comparative market share analysis, 2020 & 2028
18.104.22.168.Market size and forecast, by Advisory type, 2020-2028
22.214.171.124.Market size and forecast, by Service Type, 2020-2028
126.96.36.199.Market size and forecast, by Providers, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Advisory type, 2020-2028
220.127.116.11.Market size and forecast, by Service Type, 2020-2028
18.104.22.168.Market size and forecast, by Providers, 2020-2028
22.214.171.124.Comparative market share analysis, 2020 & 2028
126.96.36.199.Market size and forecast, by Advisory type, 2020-2028
188.8.131.52.Market size and forecast, by Service Type, 2020-2028
184.108.40.206.Market size and forecast, by Providers, 2020-2028
220.127.116.11.Comparative market share analysis, 2020 & 2028
18.104.22.168.Market size and forecast, by Advisory type, 2020-2028
22.214.171.124.Market size and forecast, by Service Type, 2020-2028
126.96.36.199.Market size and forecast, by Providers, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Advisory type, 2020-2028
220.127.116.11.Market size and forecast, by Service Type, 2020-2028
18.104.22.168.Market size and forecast, by Providers, 2020-2028
22.214.171.124.Comparative market share analysis, 2020 & 2028
7.2.11.Rest of Europe
126.96.36.199.Market size and forecast, by Advisory type, 2020-2028
188.8.131.52.Market size and forecast, by Service Type, 2020-2028
184.108.40.206.Market size and forecast, by Providers, 2020-2028
220.127.116.11.Comparative market share analysis, 2020 & 2028
7.3.1.Market size and forecast, by Advisory type, 2020-2028
7.3.2.Market size and forecast, by Service Type, 2020-2028
7.3.3.Market size and forecast, by Providers, 2020-2028
7.3.4.Market size and forecast, by country, 2020-2028
7.3.5.Comparative market share analysis, 2020 & 2028
18.104.22.168.Market size and forecast, by Advisory type, 2020-2028
22.214.171.124.Market size and forecast, by Service Type, 2020-2028
126.96.36.199.Market size and forecast, by Providers, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Advisory type, 2020-2028
220.127.116.11.Market size and forecast, by Service Type, 2020-2028
18.104.22.168.Market size and forecast, by Providers, 2020-2028
22.214.171.124.Comparative market share analysis, 2020 & 2028
126.96.36.199.Market size and forecast, by Advisory type, 2020-2028
188.8.131.52.Market size and forecast, by Service Type, 2020-2028
184.108.40.206.Market size and forecast, by Providers, 2020-2028
220.127.116.11.Comparative market share analysis, 2020 & 2028
18.104.22.168.Market size and forecast, by Advisory type, 2020-2028
22.214.171.124.Market size and forecast, by Service Type, 2020-2028
126.96.36.199.Market size and forecast, by Providers, 2020-2028
188.8.131.52.Comparative market share analysis, 2020 & 2028
184.108.40.206.Market size and forecast, by Advisory type, 2020-2028
220.127.116.11.Market size and forecast, by Service Type, 2020-2028
18.104.22.168.Market size and forecast, by Providers, 2020-2028
7.3.11.Rest of Asia Pacific
22.214.171.124.Market size and forecast, by Advisory type, 2020-2028
126.96.36.199.Market size and forecast, by Service Type, 2020-2028
188.8.131.52.Market size and forecast, by Providers, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
7.4.1.Market size and forecast, by Advisory type, 2020-2028
7.4.2.Market size and forecast, by Service Type, 2020-2028
7.4.3.Market size and forecast, by Providers, 2020-2028
7.4.4.Market size and forecast, by country, 2020-2028
7.4.5.Comparative market share analysis, 2020 & 2028
220.127.116.11.Market size and forecast, by Advisory type, 2020-2028
18.104.22.168.Market size and forecast, by Service Type, 2020-2028
22.214.171.124.Market size and forecast, by Providers, 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
188.8.131.52.Market size and forecast, by Advisory type, 2020-2028
184.108.40.206.Market size and forecast, by Service Type, 2020-2028
220.127.116.11.Market size and forecast, by Providers, 2020-2028
18.104.22.168.Comparative market share analysis, 2020 & 2028
22.214.171.124.Market size and forecast, by Advisory type, 2020-2028
126.96.36.199.Market size and forecast, by Service Type, 2020-2028
188.8.131.52.Market size and forecast, by Providers, 2020-2028
184.108.40.206.Comparative market share analysis, 2020 & 2028
8.1.Bank of America Corporation
8.1.4.Recent strategic moves & developments
8.2.4.Recent strategic moves & developments
8.3.Charles Schwab & Co., Inc.
8.3.4.Recent strategic moves & developments
8.4.4.Recent strategic moves & developments
8.5.CREDIT SUISSE GROUP AG
8.5.4.Recent strategic moves & developments
8.6.4.Recent strategic moves & developments
8.7.JPMorgan Chase & Co.
8.7.4.Recent strategic moves & developments
8.8.Julius Baer Group
8.8.4.Recent strategic moves & developments
8.9.4.Recent strategic moves & developments
8.10.4.Recent strategic moves & developments
The financial ecosystem is enormous and basically exists to cater the savings and investment requirements of organizations and individuals. Usually, a holistic approach is applied within the wealth management sector. To fulfill the intricate requirements of a customer, wealth managers offer a wide array of services including estate planning, retirement, investment advice, accounting, and tax services.
What Is Wealth Management?
Wealth management is much more than simply investment advice. It takes care of all the aspects of an individual’s financial life. Rather than struggling to put together pieces of guidance and various products from numerous wealth management professionals, high net-worth individuals (HNIs) might be more probable to benefit from an integrated wealth management approach.
In technical term, wealth management is an investment advisory service that integrates other financial services to deal with the requirements of well off customers. Using a counseling procedure, a wealth manager collects information about a customer’s requirements and particular condition, and then develops a personalized approach by making use of various financial products and services.
Why is the Growth of the Wealth Management Market Thriving?
Usually, wealthy individuals with a broad array of diverse financial management opt to hire wealth management services. As the number of people with strong financial status is rising, the need for efficient wealth management service providers is surging. As a result, the global wealth management market growth is boosting tremendously. As per a report by Research Dive, the global wealth management market [AK1] size is expected to gather a revenue of $850.90 billion in the 2021–2028 timeframe. The integration of advanced technologies, such as Internet of Things (IoT), AI (Artificial Intelligence), chatbots, and big data analytics, is likely to open doors to profitable opportunities for the market growth. Also, with the growing digitalization across the globe, wealth management companies are greatly investing in customer involvement by providing digital as well as voice-enabled assistants.
Nowadays, numerous wealth management service providers are implementing chatbots functionality to on-line conversations for offering a more tailored and user-friendly experience as compared to mobile apps. Wealth managers are greatly focusing on the implementation of advanced technologies to obtain a competitive edge, gain a detailed knowledge of the products and services they offer, and boost their overall operational competency.
Recent Trends in the Wealth Management Market
Some of the most prominent players of the global wealth management market include Bank of America Corporation, BNP Paribas, Charles Schwab & Co., Inc., Citigroup Inc., CREDIT SUISSE GROUP AG, Goldman Sachs, JPMorgan Chase & Co., Julius Baer Group, Morgan Stanley, UBS, and others. These players are focusing on developing strategies such as product development, mergers and acquisitions, partnerships, and collaborations to obtain a leading edge in the market. For instance,
- In September 2021, MyVest, a wealth management technology providing company, launched various advancements to its Strategic Portfolio System platform to enable automation and enhanced client personalization.
- In September 2021, Shenwan Hongyuan Securities (HK), a Hong Kong-based investment holding company mainly involved in financial businesses, introduced a wealth management operation, Wynner in Hong Kong. The platform is developed with an aim to offer economic solutions to expert investors and high-net-worth people who are interested in overseas asset allocation and market investments across the globe.
- In September 2021, Generational Wealth Advisors (GWA), the wealth management team of the Generational Group (GG), a foremost middle market investment bank for private businesses, introduced a new strategic relationship with the Hargrove Firm, Estate and Trust Attorneys (Hargrove). This collaboration will enable GWA to offer comprehensive tax analysis and counseling related to the potential sale of their businesses and its impact on the personal finances of its clients.
Covid-19 Impact and Future Scope of the Market
The abrupt outbreak of the coronavirus pandemic has drastically impacted the world economy. Owing to the economic recession, the global wealth management market has experienced a decline in its growth during the pandemic. Moreover, the demand for wealth management services and products has significantly declined as a result of the worldwide health emergency. However, as and when the pandemic relaxes and the economy recuperates, the need for efficient wealth management services will surge, thus fueling the market growth stupendously.