Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$5.00bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$4.35bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.51%, resulting in a market volume of US$5.38bn 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 Sri Lanka has been experiencing significant growth in recent years, driven by various factors such as changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Wealth Management market in Sri Lanka have been shifting towards a more personalized and holistic approach.

Clients are seeking tailored solutions that address their unique financial goals and risk appetite. They are also increasingly demanding transparency and ethical investment options. This shift in customer preferences is in line with global trends, as individuals are becoming more informed and conscious about their financial decisions.

One of the key trends in the Wealth Management market in Sri Lanka is the growing adoption of technology. Fintech companies and digital platforms are gaining traction, providing convenient and accessible wealth management services to a wider range of clients. This trend is driven by the increasing smartphone penetration and internet usage in the country.

Technology is enabling wealth managers to offer innovative solutions such as robo-advisory services, which use algorithms to provide automated investment advice. Another trend in the market is the focus on sustainable and socially responsible investing. Sri Lanka, being a country with a rich natural heritage and a growing awareness of environmental and social issues, has seen a rise in demand for investments that align with ethical and sustainable principles.

Wealth managers are responding to this trend by offering products and services that integrate environmental, social, and governance (ESG) factors into the investment process. In addition to these global trends, the Wealth Management market in Sri Lanka is influenced by local special circumstances. The country has a high savings rate, with individuals and families placing great importance on wealth preservation and long-term financial planning.

This cultural mindset contributes to the growth of the wealth management industry, as individuals seek professional advice to manage and grow their assets. Furthermore, the government's initiatives to promote foreign investments and develop the capital market have created opportunities for wealth managers in Sri Lanka. These efforts have attracted foreign investors and stimulated economic growth, leading to an increase in the number of high-net-worth individuals and their wealth.

The underlying macroeconomic factors in Sri Lanka, such as stable economic growth, low inflation, and a favorable regulatory environment, have also contributed to the development of the Wealth Management market. These factors provide a conducive environment for wealth managers to operate and attract both local and foreign investors. In conclusion, the Wealth Management market in Sri Lanka is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Wealth managers are adapting to these dynamics by offering personalized and technology-driven solutions, incorporating sustainable investing practices, and capitalizing on the country's high savings rate and favorable economic conditions.

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.