Increased client demand, mounting hopes of post-pandemic recovery, changing technology, growing consumer needs is driving the global wealth management market.
The value of the Wealth Management market is projected to grow to $ 3.43 trillion with an estimated CAGR of 10.7% by 2030
Covid-19 Impact and Market Status
The global wealth management market faced a huge number of losses due to the Covid-19 pandemic and the imposed lockdowns. It hurt the market due to the fallen economy, and unpredictable financial conditions of the companies. The investors and firms experienced the direct impact of the pandemic. Due to the restrictions and instability, customers moved towards electronic means of conducting business and relied on several online trends.
Finance And Technology Combined In The Wealth Management
Financial evolution has come a long way and is a greater way to boost the global wealth management market size and change the way the financial sector works. With the development of new technological trends, companies are reaching their financial goals faster and in an easier way. The gap between the investing and financial parties has reduced and has become easier to connect. The success of global wealth management companies is defined by the quality of services, digital transformation, and control of the risks involved.
North America Has Lucrative Growth Opportunities for Market Players
In recent years, 86% of financial companies have planned to increase their services in cybersecurity. The North American market has said to provide the maximum opportunities for the global market to expand their economies. In 2021, the North American region had a significant market share of global wealth management. Europe is the second largest market. It is also said that the segmentation of types of service wealth managers will gain Warehouse Roboticss globally by their annual sales. In 2019, the private banks market segment had the largest market share with a total of 42% and a CAGR of 26% during the forecast period. Also, in 2019, the large enterprises had a total market share of 61%, while others had a CAGR of 5% during the forecast period. Also, the Asia Pacific market has a significant hold on the economies of countries like China, India, Malaysia, Indonesia, and the Philippines.
Rise in big data solutions, investment in data analytics solutions, companies offering refined services and comprehensive is driving the global wealth management market. Most importantly, rise in preferences for alternative investments has boosted the growth of the global wealth management market.
Wealth management service providers provide hybrid, standardized, customized as well as personalized services for it clients.
Wealth management is known as the financial and investment advisory for small, medium, and large enterprises. It contains sales of wealth management services to organizations, traders, entities, and partnerships. This platform provides services like fund management, portfolio management, client management, risk & compliance management, financial services, and accounting. The fees and commissions charged from the service offerings determine the revenue of the market size. Wealth management services promise a high return on equity, low capital requirements, and retail banking services. It addresses the need of the clients and achieves their financial goals. Some wealth management companies act as an intermediary between the top companies and clients and provide services as a middleman. Owing to these benefits wealth management is experiencing rapid adoption thus fostering remarkable progress of global wealth management market.
The global wealth management services market is expected to be valued at USD -----Billion during the forecast period at a CAGR of --------.
The increasing demand for substitute investments and services is one of the few factors responsible for the growth of the global wealth management market. Real estate investment trusts, hedge funds, private equity, and intellectual property are some examples because wealth management companies and investors are preferring substitute investments due to the benefits that come with them. Higher returns, low portfolio risk, and their availability in private markets are a few more reasons. These are the market drivers of the global wealth management market.
In today’s world, people are leaning towards technology and technology-based products at their convenience. FinTech firms offer various services using technology and innovation to offer financial services on different software. These FinTech firms offer simple solutions to the customers at their convenience.
Wealth management also known as financial planning or personal financing is new discipline. It basically focuses on the wealth management of individuals. Wealth management services are usually provided for the wealthy people. Key areas such as positioning of assets, net worth establishment, cash flow, ratio analysis, evaluation of where the client can be more beneficial in future, balance sheet analysis, and many more ethics are observed and further recommendations are provided by the service providers. This helps the client manage his or her financial goals. Hence, there is an increasing demand for wealth management services driving the global wealth management market.
Wealth management companies offer personalized and standardized services to their clients all around the world. The demand for consistent and a variety of solutions is boosting the global market. The combination of finance and technology has made the work easier for investment parties.
The global wealth management market has created different opportunities for key market players. Artificial Intelligence (AI), data analytics, and machine learning, chatbots are some of the trends that are used to provide these hybrid services. AI supports the gap between investment decisions and data analytics. Developing countries offer several opportunities and expand their offers among emerging economies.
However, many consumers are reluctant to adopt the wealth management due to fee structure in provided by the companies. Clients have no trust in their wealth advisors and the number of fees charged. The high fees charged and the lack of transparency between the client and their advisors are a few factors that can hinder the growth of the global wealth management market.
Furthermore, rapid technological advancements, fast-evolving consumer needs, mounting hopes of post-pandemic recovery, changing technology, the environment of economic stimuli is anticipated are key factors anticipated by experts as growth opportunity to the global wealth management market
The key market players of the global wealth management market services are JP Morgan Chase, Wells Fargo & Company, Morgan Stanley, The Goldman Sachs Group, Axis Bank Wealth Management, and Kotak Wealth Management. These key market players adopt numerous strategies and offer to sustain themselves in the market.
Recent Developments/Innovations in Global Wealth Management Market: A Snapshot
- In recent years, the financial sector has heavily invested in technologies such as Artificial Intelligence (AI), machine learning, robotic automation, digital identification (ID), and great user interface and navigation for greater customer experience. It has increasingly improved customer delivery. Robo advisor technology is being used widely among providers. It has an estimated increase at a CAGR of 26.4% in the forecast period. Ernst & Young (E&Y) conducted a survey which showed the increase of FinTech from 38% to 45% in the next few years.
- Software applications like chatbots are used to talk to clients and chat online to solve their queries to offer user-friendly navigation and experience are used by wealth management companies.
Wealth Management Market Scope
|Revenue forecast in 2030
|$ 3.43 trillion
|CAGR of 10.7 %during 2020-2030
|Services, End User, Advisory Mode, Provider, Type of Wealth Managers, Regions
|North America, Europe, Asia Pacific, Middle East and Africa, South America
|Key Players Profiled
|JP Morgan Chase, Wells Fargo & Company, Morgan Stanley, The Goldman Sachs Group, Axis Bank Wealth Management
Key Segments of the Global Wealth Management Market
Services Overview (USD trillion)
- Assets Management
- Portfolio Management
- Investment Advice
- Risk & Compliance Management
Advisory Mode Overview,(USD trillion)
- Human Advisory
- Robo Advisory
- Hybrid Advisory
End-user Application Overview, (USD trillion)
- Insurance companies
- Pension funds
- Sovereign wealth funds
- High Net Worth Individuals (HNIs)
Provider Overview, (USD trillion)
- FinTech Advisors
- Traditional wealth managers
Type of Wealth Managers Overview, (USD trillion)
- Investment managers
- Private banks
Regional Overview, (USD trillion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa