Wealth Management - ASEAN

ASEAN

In 2024, it is projected that the Assets under Management in the Wealth Management market in ASEAN will reach a staggering US$673.40bn.
Financial Advisory is expected to dominate this market, with a projected market volume of US$633.90bn in the same year.
Looking ahead, there is an estimated annual growth rate (CAGR 2024-2028) of 1.47% for Assets under Management, which would result in a market volume of US$713.90bn by 2028.
In Indonesia, the trend in the wealth management market is shifting towards digital platforms to cater to the growing tech-savvy population.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

Market

Region

Region comparison

Currency

Analyst Opinion

The Wealth Management market in ASEAN is experiencing significant growth and development due to various factors. Customer preferences in the ASEAN region have shifted towards wealth management services as individuals seek professional advice and guidance in managing their finances.

This is driven by the increasing complexity of financial markets and the desire for personalized investment strategies. Additionally, the growing middle class in ASEAN countries has led to a rise in disposable income, creating a greater demand for wealth management services. Trends in the market show a shift towards digital platforms and technology-driven solutions.

Customers are increasingly looking for convenient and accessible ways to manage their wealth, and digital wealth management platforms provide just that. These platforms offer a range of services, including investment advice, portfolio management, and financial planning, all accessible through mobile devices or online platforms. This trend is further fueled by the high smartphone penetration rates in ASEAN countries, making digital wealth management a viable option for many individuals.

Local special circumstances in ASEAN countries also contribute to the development of the Wealth Management market. For example, the growing number of high-net-worth individuals in Singapore has led to the establishment of a robust wealth management industry in the country. Singapore's political stability, strong regulatory framework, and favorable tax environment have attracted both domestic and international wealth management firms to set up operations in the city-state.

Similarly, the wealth management market in Malaysia has been driven by the country's strong Islamic finance sector, with Sharia-compliant wealth management products and services gaining popularity among Muslim investors. Underlying macroeconomic factors play a crucial role in the development of the Wealth Management market in ASEAN. The region's strong economic growth, supported by factors such as urbanization, infrastructure development, and favorable demographics, has created wealth and investment opportunities.

Additionally, the low interest rate environment in many ASEAN countries has prompted investors to seek alternative investment options, leading to increased demand for wealth management services. In conclusion, the Wealth Management market in ASEAN is experiencing growth and development due to customer preferences for professional financial advice, the shift towards digital platforms, local special circumstances, and underlying macroeconomic factors. As the region continues to grow and evolve, the wealth management industry is expected to further expand, providing individuals with a wide range of options to manage and grow their wealth.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).