Wealth Management

Assets under Management in the Wealth Management market are projected to reach US$2.49bn in 2024.
Financial Advisory dominates the market with a projected market volume of US$1.93bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.64%, resulting in a market volume of US$2.84bn 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

Wealth Management market in Tanzania has been experiencing significant growth in recent years.

Customer preferences: Customers in Tanzania are increasingly seeking professional advice and services to manage their wealth. This is driven by a growing awareness of the benefits of wealth management, including diversification of investments, risk management, and long-term financial planning. Tanzanian customers are also becoming more sophisticated in their investment choices, seeking a wide range of investment options such as stocks, bonds, mutual funds, and real estate. Additionally, customers are placing a greater emphasis on ethical and socially responsible investments, reflecting a global trend towards sustainable investing.

Trends in the market: One of the key trends in the Wealth Management market in Tanzania is the rise of digital wealth management platforms. These platforms offer customers convenient and accessible ways to manage their wealth, with features such as online portfolio management, financial planning tools, and automated investment advice. This trend is driven by the increasing adoption of technology in Tanzania, as well as the desire for cost-effective and efficient wealth management solutions. Another trend in the market is the growing demand for personalized wealth management services. Customers are seeking tailored advice and solutions that meet their specific financial goals and risk tolerance. Wealth management firms in Tanzania are responding to this demand by offering customized investment strategies, financial planning services, and dedicated relationship managers. This trend is driven by the increasing wealth and sophistication of Tanzanian customers, who are looking for a more personalized approach to wealth management.

Local special circumstances: Tanzania has a rapidly growing middle class, which is driving the demand for wealth management services. As more Tanzanians accumulate wealth, they are seeking professional advice and services to help them manage and grow their assets. This is creating opportunities for wealth management firms to expand their client base and offer a wider range of services.

Underlying macroeconomic factors: Tanzania has been experiencing strong economic growth in recent years, driven by sectors such as agriculture, mining, and tourism. This has resulted in an increase in disposable income and wealth creation, which in turn has fueled the demand for wealth management services. Additionally, the government of Tanzania has implemented policies to promote financial inclusion and improve the regulatory environment for wealth management firms. These factors have created a favorable business environment for the Wealth Management market in Tanzania. In conclusion, the Wealth Management market in Tanzania is growing due to the increasing demand for professional wealth management services, the rise of digital platforms, the desire for personalized solutions, the growing middle class, and the favorable macroeconomic factors. Wealth management firms in Tanzania have the opportunity to capitalize on these trends and expand their offerings to meet the evolving needs of Tanzanian customers.

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.