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

Financial Services

IC20116119

Pages: 223

Sep 2021

Reports Overview

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%.

Market Synopsis

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.

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