Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$3.04bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$2.94bn 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$3.12bn 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 Malta has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Malta have been shifting towards wealth management services due to the increasing awareness of the importance of financial planning and investment.

Customers are seeking professional advice and guidance to help them manage their wealth and achieve their financial goals. This trend is not unique to Malta but can be observed worldwide, as individuals are becoming more proactive in managing their finances and seeking opportunities for wealth growth. One of the key trends in the Wealth Management market in Malta is the growing demand for sustainable and socially responsible investments.

Investors are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions. This trend is driven by a global shift towards sustainability and ethical investing, as individuals and institutions are becoming more conscious of the impact of their investments on the environment and society. In Malta, this trend is further fueled by the government's commitment to sustainability and the promotion of green initiatives.

Another trend in the market is the rise of digital wealth management platforms. Technology has transformed the way wealth management services are delivered, making it more accessible and convenient for customers. Digital platforms offer a range of services, including automated investment advice, portfolio management, and online trading.

This trend is driven by the increasing adoption of digital technologies and the desire for a seamless and personalized user experience. In Malta, the availability of high-speed internet and the tech-savvy population have contributed to the growth of digital wealth management platforms. Local special circumstances in Malta also play a role in the development of the Wealth Management market.

Malta is known for its favorable tax regime, making it an attractive destination for individuals and businesses looking to optimize their tax liabilities. The country's membership in the European Union provides access to a large market and regulatory framework, which instills confidence in investors. Additionally, Malta has a well-established financial services sector and a strong reputation for professionalism and expertise in wealth management.

Underlying macroeconomic factors also contribute to the growth of the Wealth Management market in Malta. The country has a stable and resilient economy, supported by sectors such as financial services, tourism, and real estate. The government's commitment to economic diversification and the promotion of foreign investment have attracted high-net-worth individuals and businesses to Malta.

Furthermore, low interest rates and a favorable investment climate have encouraged individuals to seek alternative investment opportunities, such as wealth management services. In conclusion, the Wealth Management market in Malta is developing due to customer preferences for professional wealth management services, trends such as sustainable investing and digital platforms, local special circumstances including favorable tax regime and EU membership, and underlying macroeconomic factors such as a stable economy and low interest rates. These factors contribute to the growth and evolution of the Wealth Management market in Malta, providing opportunities for wealth managers and investors alike.

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.