Wealth Management Global Market Report 2021: COVID-19 Impact and Recovery to 2030

Executive Summary

Major companies in the wealth management market include Agricultural Bank of China; Wells Fargo; BlackRock; Morgan Stanley and Bank of America.

The global wealth management market is expected to grow from $1162.66 billion in 2020 to $1263.34 billion in 2021 at a compound annual growth rate (CAGR) of 8.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1755 billion in 2025 at a CAGR of 9%.

The wealth management market consists of sales of wealth management services by entities (organizations, sole traders and partnerships) that plan, advise on and manage various kinds of assets. This market covers financial and investment advice, retirement planning and legal or estate planning but excludes accounting and tax services. The market size is the revenues generated from the fees and commissions levied on the assets being managed. It does not include the value of investments held or the amount of money invested in a given year, net or gross. This market includes the custodian charges of the firms as well as any other fees, margins or service charges but excludes brokerage fees levied on securities transactions unless they are included within the service fees or commissions. The wealth management market is segmented into asset management; funds, trusts, and other financial vehicles; and portfolio management and investment advice.

North America was the largest region in the global wealth management market, accounting for 54% of the market in 2020. Western Europe was the second largest region accounting for 25% of the global wealth management market. Middle East was the smallest region in the global wealth management market.

Many wealth management companies are investing in big data analytics capabilities to generate insights to enhance and refine service offerings and thus increase revenues. Big data solutions are being implemented to deliver insights around client segments, product penetration and analyze training program effectiveness. These technologies are being implemented to assess existing and prospective clients’ inclination to purchase various products and services being offered by a wealth management company, their lifetime value, investment pattern and the ability of the client to take risks. They are also aiding wealth management companies to track business performance, increase client acquisition and retention rates, increase sales and offer real time investment advice. For instance, CargoMetrics, an investment firm based in Boston used Automatic Identification System (AIS), to collect data on commodity movement such as cargo location and cargo size to develop analytics platform for trading commodities, currencies and equity index funds. This tool was also sold to other hedge funds and wealth managers.

Many wealth management firms are increasing spending on their cybersecurity solutions to prevent o cyber-attacks risk. Cybersecurity refers to the set of techniques used to protect the network integrity and data from unauthorized access. It enables in strengthening of security levels of the firms and prevents the loss of highly sensitive client information. They are gaining prominence as they aid financial services companies including wealth management firms in identifying theft and fraud investment transactions. For Instance, according to a recent survey, 86% of the financial services companies are planning to spend more time and resources on cybersecurity in the coming year.

Companies Mentioned

A selection of companies mentioned in this report includes:

• Agricultural Bank of China
• Wells Fargo
• BlackRock
• Morgan Stanley
• Bank of America

Methodology