Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).
Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading
Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Due to the strength of the world’s equity markets, the Wealth Management market has seen unprecedented growth in recent decades, especially in the United States which currently leads and holds the helm. Although global markets have entered an era of greater uncertainty from past and new forces taking hold, the future still presents multiple opportunities for those dynamic enough to exploit current trends in the industry.
The use of technology has had a significant impact on the market. With the rise of digital platforms and robo-advisors, investors now have access to more personalized and affordable investment advice. Technology has also enabled wealth managers to provide more efficient and streamlined services, such as online portfolio management and mobile access to investment accounts. However, in light of all this, traditional wealth management still holds a massive share in the market compared to its digital counterpart which is rapidly growing due to its recent emergence and crucial adoption in the overall market.
The demographic makeup of investors is also changing with more women and younger generations entering the market. This shift is driving a demand for more socially responsible and sustainable investment options. Wealth managers are increasingly offering products that align with these values to provide investors with a sense of purpose that goes beyond financial returns. The market is also subject to increasing regulatory scrutiny, particularly in the areas of investor protection and fee transparency. This has led to a greater focus on compliance and regulatory requirements among wealth managers and has also increased the demand for independent financial advice.
Overall, these trends are shaping the future of the Wealth Management market, and the next big challenge for market players is adapting their strategies and offerings to meet the changing needs of investors as new trends continue to accelerate and evolve, which will correlate with new winners and losers beginning to emerge.
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.
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.
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).