Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$44.27bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$38.83bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.54%, resulting in a market volume of US$45.48bn 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 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.

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.