Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$17.13bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$12.66bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.56%, resulting in a market volume of US$19.44bn 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 Pakistan is experiencing significant growth and development, driven by several key factors.

Customer preferences: Customers in Pakistan are increasingly seeking professional wealth management services to help them navigate the complexities of the financial markets and achieve their financial goals. They are looking for personalized investment advice and tailored solutions that can help them optimize their returns while managing risk. Additionally, customers are becoming more aware of the importance of long-term financial planning and are seeking comprehensive wealth management services that can address their diverse needs, including retirement planning, estate planning, and tax optimization.

Trends in the market: One of the key trends in the Wealth Management market in Pakistan is the growing popularity of digital wealth management platforms. These platforms leverage technology to provide customers with convenient access to a wide range of investment products and services. They offer features such as automated portfolio management, online account access, and real-time performance tracking. This trend is driven by the increasing adoption of smartphones and internet connectivity in Pakistan, which has made it easier for customers to access and manage their investments on the go. Another trend in the market is the rising demand for Sharia-compliant wealth management solutions. Pakistan is an Islamic country, and a significant portion of the population prefers to invest in financial products that are in line with Islamic principles. As a result, wealth management firms are offering a range of Sharia-compliant investment options, including Islamic mutual funds, Sukuk (Islamic bonds), and Islamic insurance products. This trend is driven by both religious and ethical considerations, as customers seek investment opportunities that align with their values.

Local special circumstances: Pakistan has a young and rapidly growing population, which presents a unique opportunity for the Wealth Management market. As the population becomes more financially literate and affluent, the demand for wealth management services is expected to increase. Additionally, the government of Pakistan has implemented several initiatives to promote financial inclusion and encourage savings and investment. These initiatives, coupled with the increasing availability of financial products and services, are expected to drive the growth of the Wealth Management market in the country.

Underlying macroeconomic factors: The economic stability and growth of Pakistan are also contributing to the development of the Wealth Management market. Pakistan has made significant progress in recent years in terms of macroeconomic stability, with low inflation, stable exchange rates, and improving fiscal discipline. This has created a favorable environment for investment and has boosted investor confidence. Additionally, the government's focus on infrastructure development and economic reforms is expected to attract both domestic and foreign investment, further driving the growth of the Wealth Management market in Pakistan. In conclusion, the Wealth Management market in Pakistan is experiencing growth and development due to customer preferences for professional wealth management services, the popularity of digital platforms, the demand for Sharia-compliant solutions, the young and growing population, and the favorable macroeconomic conditions. As the market continues to evolve, wealth management firms in Pakistan will need to adapt to these trends and special circumstances to effectively serve their customers and capitalize on the opportunities presented by 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.