Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$7.83bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$5.06bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.33%, resulting in a market volume of US$8.79bn 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 Kenya is experiencing significant growth and development in recent years.

Customer preferences: Kenyan customers are increasingly seeking professional financial advice and services to manage their wealth. This is driven by a growing middle class and an expanding economy, which has resulted in an increase in disposable income. Customers are looking for personalized and tailored wealth management solutions that can help them achieve their financial goals. They are also becoming more aware of the benefits of diversifying their investments and are seeking expert advice to navigate the complex financial landscape.

Trends in the market: One of the key trends in the Wealth Management market in Kenya is the rise of digital platforms and technology-driven solutions. With the increasing penetration of smartphones and internet connectivity, customers are increasingly using digital channels to access wealth management services. This has led to the emergence of online wealth management platforms that offer convenience, transparency, and lower costs compared to traditional brick-and-mortar firms. Additionally, robo-advisors are gaining popularity, providing automated investment advice based on algorithms and data analysis. Another trend in the market is the growing demand for socially responsible investments. Kenyan customers are becoming more conscious of the environmental, social, and governance (ESG) factors associated with their investments. They are seeking wealth management solutions that align with their values and contribute to sustainable development. As a result, wealth management firms are incorporating ESG criteria into their investment strategies and offering specialized products that focus on impact investing and sustainable finance.

Local special circumstances: Kenya's financial sector is characterized by a high level of informality, with a significant portion of the population relying on informal savings and investment mechanisms. This presents both challenges and opportunities for wealth management firms. On one hand, there is a large untapped market of potential customers who can benefit from professional wealth management services. On the other hand, there is a need to educate and create awareness among the population about the benefits of formal wealth management and the risks associated with informal savings.

Underlying macroeconomic factors: The Wealth Management market in Kenya is influenced by several macroeconomic factors. The country has been experiencing steady economic growth, driven by sectors such as agriculture, manufacturing, and services. This has resulted in an increase in disposable income and a growing middle class, which is fueling the demand for wealth management services. Additionally, Kenya has a relatively young population, with a large proportion of the population below the age of 35. This demographic dividend presents a significant opportunity for wealth management firms to cater to the financial needs of the younger generation and provide long-term investment solutions. Furthermore, the government of Kenya has been implementing various reforms to strengthen the financial sector and promote investor confidence. This includes initiatives to enhance regulatory frameworks, improve corporate governance, and attract foreign investment. These reforms are creating a favorable business environment for wealth management firms and contributing to the growth of the market. In conclusion, the Wealth Management market in Kenya is experiencing growth and development due to changing customer preferences, technological advancements, and favorable macroeconomic factors. As the country's economy continues to expand and the middle class grows, the demand for professional wealth management services is expected to increase. Wealth management firms that can adapt to the evolving needs of customers and leverage technology to provide innovative solutions will be well-positioned to capitalize on the opportunities in 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.