Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$3.35bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$2.78bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.47%, resulting in a market volume of US$3.79bn 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 Panama is experiencing significant growth and development.

Customer preferences: Panamanian customers are increasingly seeking professional wealth management services to help them navigate the complex financial landscape and make informed investment decisions. They are looking for personalized advice and tailored investment solutions that align with their financial goals and risk tolerance. Additionally, customers are becoming more aware of the importance of diversification and are seeking a wide range of investment options, including international investments.

Trends in the market: One of the key trends in the Wealth Management market in Panama is the increasing demand for sustainable and socially responsible investments. Customers are becoming more conscious of the environmental and social impact of their investments and are seeking opportunities that align with their values. Wealth management firms are responding to this trend by offering a range of sustainable investment products and incorporating environmental, social, and governance (ESG) factors into their investment strategies. Another trend in the market is the growing popularity of digital wealth management platforms. Customers are increasingly comfortable using digital tools to manage their finances and are looking for convenient and user-friendly platforms to access wealth management services. Fintech companies are capitalizing on this trend by offering digital wealth management solutions that provide customers with real-time access to their investment portfolios, financial planning tools, and personalized investment advice.

Local special circumstances: Panama's strategic location as a financial hub and its strong legal and regulatory framework make it an attractive destination for international investors. The country's stable political environment, favorable tax regime, and dollarized economy further contribute to its appeal. These factors have led to an influx of foreign investment in the country, driving the growth of the Wealth Management market. Additionally, Panama's growing middle class and increasing disposable income are creating new opportunities for wealth management firms. As more individuals accumulate wealth, they are seeking professional advice to help them manage and grow their assets. This has led to the expansion of the Wealth Management market to cater to the needs of this emerging segment.

Underlying macroeconomic factors: The strong economic growth in Panama, driven by sectors such as logistics, finance, and tourism, has resulted in an increase in personal wealth. As the economy continues to grow, individuals are accumulating more wealth, leading to a greater demand for wealth management services. Furthermore, Panama's favorable tax environment and its status as a financial center attract high-net-worth individuals and international investors. The country's strict banking secrecy laws and its commitment to financial transparency have also contributed to the growth of the Wealth Management market. In conclusion, the Wealth Management market in Panama is experiencing significant growth and development due to customer preferences for personalized and sustainable investment solutions, the increasing popularity of digital wealth management platforms, Panama's appeal as a financial hub, and the country's strong economic growth and favorable tax environment.

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.