Wealth Management - Portugal

Portugal

In Portugal, the Wealth Management market is expected to witness a significant growth in the coming years.
It is projected that the Assets under Management in this market will reach a staggering US$45.01bn in 2024.
Financial Advisory services are set to dominate this market, with a projected market volume of US$39.57bn in the same year.
Looking ahead, the Assets under Management are expected to display a steady annual growth rate of 1.10% from 2024 to 2028.
This growth trajectory will result in a market volume of US$47.03bn by 2028.
The figures clearly indicate the immense potential of the Wealth Management market in Portugal, and highlight the importance of financial advisory services in the country's investment landscape.
Wealth management in Portugal is witnessing a shift towards sustainable investing, with an increasing number of high-net-worth individuals seeking socially responsible investment opportunities.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

Market

Region

Region comparison

Currency

Analyst Opinion

The Wealth Management market in Portugal has been experiencing significant growth in recent years. Customer preferences have shifted towards more personalized and tailored financial advice, leading to an increased demand for wealth management services. This trend can be attributed to several factors, including the growing wealth of individuals in the country, changing demographics, and the increasing complexity of financial markets.

Customer preferences: In Portugal, customers are increasingly seeking personalized and tailored wealth management services. They are looking for advisors who can provide comprehensive financial planning, investment advice, and risk management strategies. This shift in preference can be attributed to the increasing complexity of financial markets and the desire for individuals to maximize their returns while minimizing risk.

Trends in the market: One of the key trends in the wealth management market in Portugal is the rise of digital platforms and robo-advisors. These platforms offer automated investment advice and portfolio management services at a lower cost compared to traditional wealth management firms. This trend has been driven by the increasing adoption of technology and the desire for convenience among customers. Another trend in the market is the growing importance of sustainable and socially responsible investments. Customers in Portugal are increasingly concerned about environmental and social issues, and they want their investments to align with their values. Wealth management firms are responding to this demand by offering a range of sustainable investment options and integrating environmental, social, and governance (ESG) factors into their investment strategies.

Local special circumstances: Portugal has a high net worth individual (HNWI) population, which has been growing steadily in recent years. This is partly due to the country's attractive tax regime for foreign investors and the increasing number of wealthy individuals relocating to Portugal. As a result, there is a growing need for wealth management services to cater to the unique needs of this affluent population.

Underlying macroeconomic factors: The growth of the wealth management market in Portugal can also be attributed to several underlying macroeconomic factors. The country has experienced economic stability and steady GDP growth in recent years, which has contributed to the accumulation of wealth among individuals. Additionally, low interest rates have made traditional savings and investment options less attractive, leading individuals to seek alternative investment strategies through wealth management services. In conclusion, the Wealth Management market in Portugal is experiencing significant growth due to changing customer preferences, including a demand for personalized and tailored financial advice. The rise of digital platforms and robo-advisors, as well as the increasing importance of sustainable and socially responsible investments, are key trends in the market. Portugal's high net worth individual population and underlying macroeconomic factors, such as economic stability and low interest rates, are also contributing to the growth of the market.

Methodology

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).