Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$2.33bn in 2024.
Digital Investment dominates the market with a projected market volume of US$1.48bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 5.24%, resulting in a market volume of US$3.00bn 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

Wealth Management market in Ethiopia is developing at a steady pace, driven by various factors such as increasing disposable income, growing middle class, and a rising demand for financial planning and investment services.

Customer preferences: Ethiopian customers are increasingly seeking professional advice and assistance in managing their wealth. They are looking for personalized and tailored investment solutions that can help them achieve their financial goals. This shift in customer preferences is fueled by a growing awareness about the importance of financial planning and the benefits of investing in diverse asset classes. Additionally, customers are becoming more tech-savvy and are open to using digital platforms for wealth management services.

Trends in the market: One of the key trends in the Wealth Management market in Ethiopia is the emergence of robo-advisory services. Robo-advisors, which are online platforms that use algorithms to provide investment advice, are gaining popularity among tech-savvy customers who prefer a low-cost and convenient way of managing their wealth. This trend is driven by the increasing penetration of smartphones and internet connectivity in the country. Another trend in the market is the growing interest in socially responsible investing (SRI). Ethiopian customers are increasingly conscious about the social and environmental impact of their investments and are looking for wealth management solutions that align with their values. This trend is in line with the global shift towards sustainable investing and presents an opportunity for wealth management firms to cater to this growing demand.

Local special circumstances: Ethiopia has a young and rapidly growing population, which presents a unique opportunity for the Wealth Management market. As the country continues to experience economic growth and urbanization, more individuals are entering the workforce and accumulating wealth. This demographic dividend creates a favorable environment for wealth management firms to tap into a growing customer base and expand their services.

Underlying macroeconomic factors: The Ethiopian economy has been growing at a steady rate in recent years, driven by investments in infrastructure, agriculture, and manufacturing sectors. This economic growth has contributed to an increase in disposable income and a growing middle class, which in turn fuels the demand for wealth management services. Additionally, the government's efforts to promote financial inclusion and improve the regulatory framework for the financial sector have also played a role in the development of the Wealth Management market in Ethiopia. In conclusion, the Wealth Management market in Ethiopia is experiencing growth and development due to increasing customer preferences for professional wealth management services, emerging trends such as robo-advisory and socially responsible investing, local special circumstances such as a young and growing population, and underlying macroeconomic factors including economic growth and government initiatives. As the market continues to evolve, wealth management firms have the opportunity to cater to the diverse needs and preferences of Ethiopian customers and contribute to their financial well-being.

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.