Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$657.20m in 2024.
Financial Advisory dominates the market with a projected market volume of US$488.50m in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 3.33%, resulting in a market volume of US$774.00m 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 Rwanda is experiencing significant growth and development in recent years. Customer preferences in the Wealth Management market in Rwanda are shifting towards more diversified investment options and personalized services.

Investors are increasingly seeking opportunities to diversify their portfolios and mitigate risks through investments in various asset classes such as equities, bonds, and real estate. Additionally, there is a growing demand for tailored wealth management services that cater to the unique needs and goals of individual investors. This includes services such as financial planning, tax optimization, and estate planning.

Trends in the Wealth Management market in Rwanda indicate a shift towards digitalization and technology-driven solutions. The rise of digital platforms and fintech companies has made it easier for investors to access and manage their wealth. Online investment platforms and mobile applications provide investors with real-time information, investment tools, and the ability to execute trades at their convenience.

This trend is driven by the increasing use of smartphones and internet penetration in the country. Local special circumstances in Rwanda contribute to the development of the Wealth Management market. The country has experienced steady economic growth and political stability, which has created a favorable environment for investment and wealth accumulation.

Additionally, the government has implemented various initiatives to promote financial inclusion and investor protection, which has further boosted investor confidence in the market. The growing middle class and increasing disposable income also contribute to the demand for wealth management services. Underlying macroeconomic factors such as GDP growth, inflation, and interest rates play a crucial role in shaping the Wealth Management market in Rwanda.

A stable and growing economy provides investors with more opportunities for wealth creation and preservation. Low inflation and interest rates encourage investment and reduce the cost of borrowing, making it more attractive for individuals to invest their wealth. Furthermore, favorable government policies and regulations create a conducive environment for wealth management firms to operate and attract both local and foreign investors.

In conclusion, the Wealth Management market in Rwanda is experiencing growth and development driven by changing customer preferences, digitalization, local special circumstances, and underlying macroeconomic factors. As the country continues to progress economically and financially, the demand for wealth management services is expected to further increase, providing opportunities for wealth management firms to expand their operations and cater to the evolving needs of investors.

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.