Wealth Management Global Market Report 2022

Executive Summary

Major companies in the wealth management market include Industrial and Commercial Bank of China, Legal & General Group plc, CNP Assurances, UBS, Japan, Post Group, BlackRock, JPMorgan Chase & Co., Morgan Stanley, Citi Group, and Manulife Financial Corporation.

The global wealth management market is expected to grow from $1,517.0 billion in 2021 to $1,732.55 billion in 2022 at a compound annual growth rate (CAGR) of 14.2%. The market is expected to grow to $2,801.45 billion in 2026 at a compound annual growth rate (CAGR) of 12.8%.

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 main types of wealth management are funds, trusts, and other financial vehicles, asset management, portfolio management, and investment advice. Funds include mutual funds that act as an investment tool for wealth management. The various advisory mode is human advisory, Robo advisory, and the hybrid mode that is used by large enterprises, medium and small enterprises.

North America was the largest region in the wealth management market in 2021. Western Europe was the second largest region in the wealth management market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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 the 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 financial services companies are planning to spend more time and resources on cybersecurity in the coming year.

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 an analytics platform for trading commodities, currencies, and equity index funds. This tool was also sold to other hedge funds and wealth managers

The countries covered in the wealth management market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.

Companies Mentioned

A selection of companies mentioned in this report includes:

• Industrial and Commercial Bank of China
• Legal & General Group plc.
• CNP Assurances
• UBS
• Japan Post Group
• BlackRock
• JPMorgan Chase & Co.
• Morgan Stanley
• Citi Group
• Manulife Financial Corporation

Methodology