Wealth Management - Chile

Chile

In Chile, the Wealth Management market is expected to witness significant growth in the coming years.
By 2024, it is projected that the Assets under Management in this market will reach a staggering amount of US$19,860.00m.
Financial Advisory services are anticipated to dominate the market, with a projected market volume of US$16,880.00m by 2024.
Looking ahead, the Assets under Management are forecasted to exhibit an annual growth rate (CAGR 2024-2028) of 3.38%.
This growth rate is expected to result in a market volume of US$22,680.00m by 2028.
The continuous growth in the Wealth Management market sector in Chile highlights the increasing importance of financial advisory services and the potential for further expansion in the coming years.
Chile's wealth management market is experiencing an upswing due to the country's stable economy and increasing number of high-net-worth individuals.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

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Analyst Opinion

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

Customer preferences: Chilean investors have shown a strong preference for wealth management services due to several factors. Firstly, the country has a growing middle class with increasing disposable income, which has led to a greater demand for professional financial advice and investment solutions. Additionally, Chile has a well-developed pension system, with a high level of savings and investment among its population. This has created a need for wealth management services to help individuals grow and protect their assets.

Trends in the market: One of the key trends in the Chilean wealth management market is the increasing popularity of digital platforms and robo-advisors. These platforms offer convenient and cost-effective investment solutions, appealing to a younger generation of investors who are tech-savvy and prefer self-service options. This trend has also been driven by the COVID-19 pandemic, which has accelerated the adoption of digital solutions across various industries. Another trend in the market is the growing interest in sustainable and socially responsible investing. Chilean investors are becoming more conscious of the environmental and social impact of their investments, and are seeking wealth management services that align with their values. This trend is in line with the global shift towards sustainable investing, as investors recognize the potential for long-term financial returns and positive impact.

Local special circumstances: Chile has a well-regulated financial sector, which has contributed to the growth of the wealth management market. The country has a strong legal framework and investor protection measures in place, which instills confidence among investors and encourages them to seek professional advice. Additionally, Chile has a stable political and economic environment, which further enhances the attractiveness of the market for both domestic and international wealth management firms.

Underlying macroeconomic factors: The Chilean economy has been experiencing steady economic growth, driven by sectors such as mining, agriculture, and services. This has resulted in an increase in the overall wealth of the population, creating opportunities for wealth management firms to cater to the growing demand for investment services. Furthermore, low interest rates have incentivized investors to seek higher returns through alternative investment options, leading to a greater demand for wealth management services. In conclusion, the Wealth Management market in Chile is growing due to the increasing disposable income and savings of the middle class, the demand for professional financial advice, and the well-regulated financial sector. The market is also witnessing trends such as the rise of digital platforms and sustainable investing. The stable political and economic environment, as well as the steady economic growth, further contribute to the development of the market.

Methodology

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).