Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$224.40bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$220.40bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.49%, resulting in a market volume of US$229.90bn 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 New Zealand has been experiencing significant growth in recent years.

Customer preferences: Customers in New Zealand have shown a strong preference for personalized wealth management services. They are increasingly seeking customized solutions that cater to their individual financial goals and risk appetites. This has led to a rise in demand for financial advisors who can provide tailored investment advice and portfolio management services. Additionally, customers are becoming more tech-savvy and are looking for digital wealth management platforms that offer convenience and transparency.

Trends in the market: One of the key trends in the New Zealand Wealth Management market is the growing adoption of sustainable and socially responsible investing. Customers are increasingly interested in investing their wealth in companies and funds that align with their values and have a positive impact on society and the environment. This trend is driven by a combination of factors, including increased awareness of environmental and social issues, changing consumer preferences, and regulatory initiatives promoting sustainable investment practices. Another trend in the market is the rise of robo-advisory services. Robo-advisors use algorithms and automation to provide investment advice and manage portfolios. This technology-driven approach to wealth management appeals to customers who are looking for low-cost and convenient investment solutions. Robo-advisory platforms also offer a user-friendly interface and provide access to a wide range of investment options, making them attractive to tech-savvy customers.

Local special circumstances: New Zealand has a relatively small population compared to other developed countries, which has implications for the Wealth Management market. The limited pool of potential customers means that wealth management firms need to focus on providing high-quality services to retain existing clients and attract new ones. Additionally, the New Zealand market is highly competitive, with both domestic and international players vying for market share. This competition has led to innovation and the development of new products and services to meet the evolving needs of customers.

Underlying macroeconomic factors: The New Zealand economy has been performing well in recent years, with steady economic growth and low unemployment rates. This has contributed to an increase in household wealth and disposable income, driving the demand for wealth management services. Additionally, the low interest rate environment has made traditional savings and investment products less attractive, leading customers to seek alternative investment options. The New Zealand government has also implemented policies to encourage savings and investment, further boosting the Wealth Management market. In conclusion, the Wealth Management market in New Zealand is experiencing growth due to customer preferences for personalized services, the adoption of sustainable investing, the rise of robo-advisory platforms, and favorable macroeconomic factors. The market is highly competitive, and wealth management firms need to focus on providing high-quality services to attract and retain customers in this evolving landscape.

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.