Wealth Management - United Kingdom

Assets under Management in the Wealth Management market are projected to reach US$11.11tn in 2024.
Financial Advisory dominates the market with a projected market volume of US$11.04tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.79%, resulting in a market volume of US$12.75tn 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 United Kingdom has been experiencing significant growth in recent years, driven by various factors such as changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In the United Kingdom, customers are increasingly seeking personalized and tailored wealth management services that cater to their individual needs and goals. They are looking for comprehensive financial planning, investment advice, and access to a wide range of investment products. Additionally, customers are placing a greater emphasis on sustainable and socially responsible investing, seeking opportunities that align with their values and have a positive impact on society and the environment.

Trends in the market: One of the key trends in the Wealth Management market in United Kingdom is the growing adoption of digital technology. Fintech companies and traditional wealth management firms are investing heavily in digital platforms and tools to enhance the customer experience, streamline operations, and provide real-time access to financial information and investment opportunities. This trend has been accelerated by the COVID-19 pandemic, which has increased the demand for remote and digital services. Another trend in the market is the rise of robo-advisors. These automated investment platforms use algorithms and artificial intelligence to provide investment advice and manage portfolios. Robo-advisors offer cost-effective solutions and appeal to tech-savvy customers who prefer a hands-off approach to wealth management. However, traditional wealth management firms are also adapting to this trend by incorporating robo-advisory services into their offerings to cater to a wider range of customers.

Local special circumstances: The United Kingdom has a mature and well-regulated financial services industry, which provides a solid foundation for the Wealth Management market. London, in particular, is a global financial hub and attracts high-net-worth individuals from around the world. The presence of international banks, asset management firms, and private equity companies in the city creates a competitive environment and fosters innovation in wealth management services. Brexit is another local special circumstance that has had an impact on the Wealth Management market in United Kingdom. The uncertainty surrounding the UK's departure from the European Union has led to volatility in the financial markets and prompted some investors to seek professional advice and guidance. Wealth managers have been helping clients navigate the potential risks and opportunities arising from Brexit, ensuring their investments are well-positioned for the future.

Underlying macroeconomic factors: The performance of the Wealth Management market in United Kingdom is closely tied to the overall economic conditions. Factors such as GDP growth, interest rates, inflation, and stock market performance influence the investment climate and the demand for wealth management services. The UK has a stable and developed economy, which attracts both domestic and international investors. The low interest rate environment has also encouraged individuals to seek alternative investment options to generate higher returns. In conclusion, the Wealth Management market in United Kingdom is witnessing growth due to changing customer preferences, emerging trends such as digitalization and robo-advisory services, local special circumstances like the presence of a mature financial services industry and the impact of Brexit, and underlying macroeconomic factors such as GDP growth and low interest rates. As the market continues to evolve, wealth managers will need to adapt their strategies and offerings to meet the evolving needs and expectations of their clients.

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.