Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$33.25bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$33.08bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.47%, resulting in a market volume of US$34.04bn 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 Iceland has been experiencing significant growth and development in recent years. Customer preferences in the Wealth Management market in Iceland have been shifting towards more personalized and tailored investment strategies.

Clients are increasingly seeking customized solutions that align with their individual financial goals and risk tolerance. This trend is in line with global market preferences, as investors are becoming more sophisticated and demanding in their investment choices. Trends in the Wealth Management market in Iceland reflect the country's strong economic performance and favorable investment climate.

Iceland has a well-developed financial sector with a high level of sophistication, which attracts both domestic and international investors. The market is characterized by a wide range of investment options, including stocks, bonds, mutual funds, and real estate. Additionally, the growing popularity of sustainable and socially responsible investing is also influencing the market, as clients are increasingly seeking investment opportunities that align with their values.

Local special circumstances in the Wealth Management market in Iceland include the country's small population size and high income levels. With a population of just over 360,000 people, the market is relatively small compared to other countries. However, the high income levels in Iceland mean that there is a significant amount of wealth to be managed.

This presents both opportunities and challenges for wealth management firms operating in the country. On one hand, the small population size means that firms need to focus on attracting and retaining high net worth individuals to sustain their business. On the other hand, the high income levels provide a strong customer base for wealth management services.

Underlying macroeconomic factors have also contributed to the growth of the Wealth Management market in Iceland. The country has a strong and stable economy, with low unemployment rates and high GDP per capita. Additionally, Iceland has a favorable business environment, with a well-regulated financial sector and a high level of transparency.

These factors have attracted both domestic and international investors to the country, driving the growth of the Wealth Management market. In conclusion, the Wealth Management market in Iceland is experiencing significant growth and development, driven by shifting customer preferences, favorable market trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, wealth management firms in Iceland will need to adapt to meet the changing needs and preferences of their clients.

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.