Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$3.73bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$3.14bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.41%, resulting in a market volume of US$4.00bn 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

The Wealth Management market in Jordan is experiencing significant growth and development in recent years.

Customer preferences: Jordanian customers are increasingly seeking professional wealth management services to help them manage their assets and achieve their financial goals. This shift in customer preferences can be attributed to several factors. Firstly, the growing affluence and disposable income of the population have led to a greater need for wealth management services. Additionally, customers are becoming more aware of the benefits of professional financial advice and are willing to pay for these services.

Trends in the market: One of the key trends in the Wealth Management market in Jordan is the increasing demand for Sharia-compliant wealth management solutions. As a predominantly Muslim country, Jordan has a large population that adheres to Islamic principles. This has created a niche market for Islamic wealth management products and services, which are designed to comply with Islamic finance principles. Another trend in the market is the rise of digital wealth management platforms. Jordanians are increasingly embracing technology and are looking for convenient and efficient ways to manage their wealth. Digital platforms offer customers the ability to track their investments, access financial advice, and execute transactions online. This trend is driven by the growing adoption of smartphones and internet connectivity in the country.

Local special circumstances: The geopolitical stability of Jordan is a significant factor contributing to the growth of the Wealth Management market. Unlike some of its neighboring countries, Jordan has managed to maintain political stability and security, which has created a favorable environment for the development of the financial sector. Furthermore, Jordan has a well-regulated financial industry, which provides a level of confidence and trust for customers seeking wealth management services. The country's regulatory framework ensures that wealth management providers operate in a transparent and accountable manner, which is appealing to customers who are looking for reliable and trustworthy financial advice.

Underlying macroeconomic factors: The strong economic growth and stability in Jordan have also played a crucial role in the development of the Wealth Management market. The country has experienced steady economic growth in recent years, driven by sectors such as tourism, manufacturing, and services. This has resulted in an increase in disposable income and wealth accumulation among the population, creating a greater demand for wealth management services. Additionally, the low interest rate environment in Jordan has encouraged individuals to seek alternative investment options to generate higher returns on their savings. Wealth management providers offer a range of investment products and strategies that can help customers achieve their financial goals in this low-interest-rate environment. In conclusion, the Wealth Management market in Jordan is witnessing significant growth and development, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for professional wealth management services, particularly Sharia-compliant solutions, is on the rise, and digital platforms are becoming increasingly popular among customers. The geopolitical stability and well-regulated financial industry in Jordan provide a conducive environment for the growth of the Wealth Management market. Additionally, the strong economic growth and low-interest-rate environment in the country have contributed to the increased demand for wealth management services.

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.