Wealth Management - Russia | Statista Market Forecast

Assets under Management in the Wealth Management market are projected to reach US$532.60bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$520.80bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 3.92%, resulting in a market volume of US$645.40bn 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 Russia has been experiencing significant growth in recent years.

Customer preferences: Russian customers have shown a growing interest in wealth management services as they seek to diversify their investment portfolios and maximize their returns. They are increasingly looking for professional advice and personalized solutions to help them achieve their financial goals. The demand for wealth management services is also driven by the desire to protect and grow wealth, especially in the face of economic uncertainties.

Trends in the market: One of the key trends in the Russian wealth management market is the increasing adoption of digital platforms and technologies. Wealth management firms are leveraging digital tools to enhance customer experience, streamline operations, and offer more personalized and efficient services. This trend is driven by the growing tech-savvy population in Russia and the increasing need for convenient and accessible wealth management solutions. Another trend in the market is the rising popularity of sustainable and socially responsible investing. Russian investors are becoming more conscious of environmental, social, and governance (ESG) factors and are seeking investment opportunities that align with their values. Wealth management firms are responding to this trend by offering ESG-focused investment products and incorporating sustainability considerations into their investment strategies.

Local special circumstances: The Russian wealth management market is unique due to the country's geopolitical and economic situation. The Russian economy is heavily dependent on natural resources, particularly oil and gas, which can lead to volatility in the market. Wealth management firms operating in Russia need to navigate these challenges and develop investment strategies that can withstand market fluctuations. Additionally, the regulatory environment in Russia can be complex and stringent. Wealth management firms need to ensure compliance with local regulations and maintain a strong risk management framework. This can present both challenges and opportunities for market participants, as it helps to build trust and credibility with clients.

Underlying macroeconomic factors: The development of the wealth management market in Russia is influenced by several macroeconomic factors. Economic growth, inflation rates, and interest rates play a significant role in shaping investor sentiment and appetite for wealth management services. A stable and growing economy can attract more investors and increase the demand for wealth management products. Furthermore, demographic factors such as population growth, income levels, and wealth distribution also impact the wealth management market. As the Russian middle class expands and disposable incomes rise, more individuals are seeking professional wealth management services to help them manage and grow their wealth. In conclusion, the Wealth Management market in Russia is experiencing growth due to increasing customer preferences for professional advice and personalized solutions. The market is characterized by trends such as the adoption of digital platforms and sustainable investing. Local special circumstances, including the country's geopolitical and economic situation, as well as the regulatory environment, shape the market dynamics. Underlying macroeconomic factors such as economic growth and demographics also play a significant role in the development 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.