Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$38.53bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$37.72bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.87%, resulting in a market volume of US$40.24bn 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 Puerto Rico is experiencing significant growth and development in recent years. Customer preferences in the Wealth Management market in Puerto Rico are shifting towards more personalized and tailored services.

Clients are increasingly seeking customized investment strategies and financial planning solutions that meet their specific needs and goals. This trend is fueled by a growing awareness among individuals of the importance of long-term financial planning and the desire to maximize their wealth and assets. Additionally, clients are placing a greater emphasis on transparency and trust in their relationships with wealth managers, demanding clear and open communication about investment strategies and performance.

Trends in the market show a growing demand for digital wealth management solutions in Puerto Rico. The rise of technology has enabled wealth management firms to offer online platforms and tools that allow clients to access and manage their investments anytime, anywhere. This convenience and accessibility are particularly appealing to younger investors who are more tech-savvy and prefer digital solutions.

Furthermore, the COVID-19 pandemic has accelerated the adoption of digital wealth management services as more individuals seek remote and contactless options for managing their finances. Local special circumstances in Puerto Rico also contribute to the development of the Wealth Management market. The island's status as a U.

S. territory provides certain tax advantages for investors, attracting high-net-worth individuals and businesses to establish residency or operations in Puerto Rico. The favorable tax environment, including tax incentives for businesses and individuals, has created opportunities for wealth managers to cater to this affluent clientele.

Additionally, Puerto Rico's unique cultural and linguistic characteristics, being a predominantly Spanish-speaking population, require wealth management firms to provide services in both English and Spanish to effectively serve their clients. Underlying macroeconomic factors play a role in the growth of the Wealth Management market in Puerto Rico. The island's strong economy, driven by industries such as tourism, manufacturing, and financial services, creates a favorable environment for wealth creation and investment.

Furthermore, Puerto Rico's geographic location and close ties to the United States provide access to global markets and investment opportunities. The stability and resilience of the U. S.

financial system also contribute to the confidence of investors in Puerto Rico's wealth management industry. In conclusion, the Wealth Management market in Puerto Rico is experiencing growth and development driven by customer preferences for personalized services, the adoption of digital solutions, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, wealth managers in Puerto Rico will need to adapt to these trends and cater to the unique needs and preferences of their clients to maintain a competitive edge.

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.