Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$18.39bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$15.41bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.02%, resulting in a market volume of US$20.33bn by 2029.

Definition:

Wealth management is a service provided by financial institutions, such as banks or investment firms, to help individuals manage their money and investments. The goal of wealth management is to help people grow and protect their wealth over time, by creating personalized investment plans that consider their financial goals, risk tolerance, and overall financial situation. This goal ultimately emphasizes wealth creation through wealth preservation.

Structure:

The Wealth Management market consists of two different segments, Financial Advisory and Digital Investment. Financial Advisory covers traditional financial advisory services and provides a broader look into the revenue generated by this offering. Digital Investment contains automated investment services (Robo-Advisors) and online trading services (Neobrokers) that go beyond the means of traditional financial advisory services.

Additional information:

The market comprises of revenues, number of advisors, average revenue per advisor, assets under management (AUM), users, average revenue per user, and average AUM per user. Revenues are generated through the financial advisory services offered by the financial institutions within the Wealth Management market space. The market only displays B2C revenues and users for the above-mentioned segments and subsegments; B2B and B2G revenues are not included. Additional definitions for each segment can be found on the respective segment pages.
Market numbers for Digital Investment are also featured among our digital markets, namely in the Digital Investment segment of the Fintech market.
Key players in the market include financial institutions such as BlackRock, Vanguard Group, Fidelity Investments, State Street Global, and J.P. Morgan Chase & Co.

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Traditional & Digital Wealth Management (non-automated & automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
Digital Investment, incl. Robo-advisors and Neobrokers
Full-Service Products for Investing and Trading
Retail/Non-Professional Investors

Commercial Assets or Assets Under Custody
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Full-Service Products for Insurance and Lending

The Wealth Management market in Chile has been experiencing significant growth in recent years.

Customer preferences: Chilean investors have shown a strong preference for wealth management services due to several factors. Firstly, the country has a growing middle class with increasing disposable income, which has led to a greater demand for professional financial advice and investment solutions. Additionally, Chile has a well-developed pension system, with a high level of savings and investment among its population. This has created a need for wealth management services to help individuals grow and protect their assets.

Trends in the market: One of the key trends in the Chilean wealth management market is the increasing popularity of digital platforms and robo-advisors. These platforms offer convenient and cost-effective investment solutions, appealing to a younger generation of investors who are tech-savvy and prefer self-service options. This trend has also been driven by the COVID-19 pandemic, which has accelerated the adoption of digital solutions across various industries. Another trend in the market is the growing interest in sustainable and socially responsible investing. Chilean investors are becoming more conscious of the environmental and social impact of their investments, and are seeking wealth management services that align with their values. This trend is in line with the global shift towards sustainable investing, as investors recognize the potential for long-term financial returns and positive impact.

Local special circumstances: Chile has a well-regulated financial sector, which has contributed to the growth of the wealth management market. The country has a strong legal framework and investor protection measures in place, which instills confidence among investors and encourages them to seek professional advice. Additionally, Chile has a stable political and economic environment, which further enhances the attractiveness of the market for both domestic and international wealth management firms.

Underlying macroeconomic factors: The Chilean economy has been experiencing steady economic growth, driven by sectors such as mining, agriculture, and services. This has resulted in an increase in the overall wealth of the population, creating opportunities for wealth management firms to cater to the growing demand for investment services. Furthermore, low interest rates have incentivized investors to seek higher returns through alternative investment options, leading to a greater demand for wealth management services. In conclusion, the Wealth Management market in Chile is growing due to the increasing disposable income and savings of the middle class, the demand for professional financial advice, and the well-regulated financial sector. The market is also witnessing trends such as the rise of digital platforms and sustainable investing. The stable political and economic environment, as well as the steady economic growth, further contribute to the development of the market.

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).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.