Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$21.51bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$19.33bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.73%, resulting in a market volume of US$22.31bn 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 Malaysia has been experiencing significant growth in recent years. Customer preferences in the Wealth Management market in Malaysia have been shifting towards more personalized and tailored services.

Wealthy individuals in Malaysia are increasingly seeking out wealth management services that can provide them with customized investment strategies and solutions. This shift in customer preferences can be attributed to several factors, including the growing complexity of the global financial markets and the increasing wealth of individuals in Malaysia. One of the key trends in the Wealth Management market in Malaysia is the growing demand for Islamic wealth management services.

Islamic finance is a rapidly growing sector in Malaysia, and this has translated into an increased demand for wealth management services that are compliant with Islamic principles. Wealthy individuals in Malaysia are increasingly seeking out wealth management services that can provide them with investment options that are in line with their religious beliefs. This trend is expected to continue in the coming years as the Islamic finance sector in Malaysia continues to grow.

Another trend in the Wealth Management market in Malaysia is the increasing use of technology and digital platforms. Wealth management firms in Malaysia are adopting digital solutions to streamline their operations and provide more efficient and convenient services to their clients. This includes the use of online platforms for account management, investment tracking, and communication with clients.

The adoption of technology in the Wealth Management market in Malaysia is driven by the increasing demand for convenience and accessibility among clients, as well as the need for wealth management firms to stay competitive in the market. One of the local special circumstances that impact the Wealth Management market in Malaysia is the country's growing middle class. Malaysia has experienced significant economic growth in recent years, resulting in an expanding middle class with increasing wealth.

This has created a larger pool of potential clients for wealth management firms in Malaysia, as more individuals seek out professional advice and services to manage their wealth. The growing middle class in Malaysia presents a significant opportunity for wealth management firms to expand their client base and grow their business. Underlying macroeconomic factors that are driving the development of the Wealth Management market in Malaysia include the country's stable economic growth, favorable regulatory environment, and strong financial sector.

Malaysia has a well-developed financial system and a robust regulatory framework, which provides a stable and secure environment for wealth management activities. Additionally, Malaysia's strategic location in Southeast Asia and its strong trade links with other countries in the region contribute to the growth of the Wealth Management market, as it attracts foreign investors and businesses. In conclusion, the Wealth Management market in Malaysia is experiencing growth due to shifting customer preferences, including the demand for personalized and Islamic wealth management services.

The adoption of technology and digital platforms is also a key trend in the market. The growing middle class in Malaysia presents an opportunity for wealth management firms to expand their client base. Underlying macroeconomic factors, such as Malaysia's stable economic growth and favorable regulatory environment, contribute to the development of the Wealth Management market in the country.

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.