Analysis of Latin America Wealth Management Market - (2016 - 2021)

Analysis of Latin America Wealth Management Market - (2016 - 2021)

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The global economic crisis of 2008 significantly decreased client trust in wealth management firms, globally. This resulted in a shift towards safer products such as fixed income securities and other personalized services. However, the mass affluent offer high growth opportunities for the wealth management industry. AUM (assets under management) by 17% in 2013, even as regional leader Brazil saw growth reduce to just below 10%. The wealth management industry in Latin America is poised for growth at an estimated CAGR of XX.X% over the period from 2016 to 2021. The projected market value of the wealth management sector is USD XXXX.XX million, by 2021.

Drivers

Brazil and Mexico account for about 66% of the private banking market. In Brazil, with the decrease in nominal interest rates and relatively high inflation rates, investors are worried about real investment returns. Private-banking clients are now getting 1 to 2%, annually, who were previously accustomed to 6 to 8% real returns. Hence, clients are seeking wealth managers to adapt to these new market dynamics. This factor has been driving the market in the region, along with high competition in the sector. Private banks, independent broker-dealers (IBD’s), wirehouses, independent advisors and MFO’s all compete to capture clients in the High Net Worth (HNW) and Ultra High Net Worth (UHNW) segments. The number of these HNW and UHNW people is on the rise, which acts as another driver.

Restraints and Challenges

Trust is one of the major issues as the recent economic crises significantly decreased client trust in wealth management. Competition is fierce, and it might be very difficult for a new company to settle in the sector and make profits. Age and a focus on confidentiality and security are the main barriers. Banks will need to tailor their services to the needs of a new generation – clients who not only are digitally savvy, more sophisticated, and less risk averse, but who also have a broader range of interest. Some people fear that the situation in the future will be same as the one in 2008 and are satisfied with keeping their money in banks rather than risking it elsewhere.

Opportunities

The margins in wealth management are good, and it helps private banks build more corporate connections. Hence, many banks are putting in more manpower into the wealth management division. Moreover, a large chunk of the millionaire population was born between 1945-1965 (baby boomer population) is included in the mass affluent segment. This population would require financial advice for retirement planning in the coming decade, having accumulated significant wealth, and this will present further opportunities for wealth management.

About the Market

  • PESTLE Analysis (Overview): Macro market factors pertinent to this region.
  • Market Definition: Main, as well as, associated/ancillary components constituting the market.
  • Key Findings of the Study: Top headlines about market trends & numbers.

Market Dynamics:

  • Drivers: What are the key factors driving growth in the market?
  • Restraints: Most relevant threats and restraints which hinder the growth of the market?
  • Opportunities: Sectors of high return or quick turn around on investment?
  • Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters.

Chain Analysis:

Competition:

  • Market Share Analysis: Top players in the market (by value and volume).
  • Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights.

 

1. Introduction

                1.1 Definition of the Market

                1.2 Research Approach and Methodology

                                1.2.1 Introduction

                                1.2.2 Research Design

                                1.2.3 Study Phases

                1.3 Scope of the Report

                1.4 Regional Analysis

                                1.4.1 PESTLE Analysis

                                1.4.2 Analysis of Ease of Doing Business

2. Market Dynamics

                2.1 Drivers

                2.2 Restraints

                2.3 Opportunities

                2.4 Market Demand Analysis

                                2.4.1 Identification of Target Subsegments (Demand Estimation)

                                2.4.2 Spending Patterns

                2.5 Porter's Five Forces Analysis

                                2.5.1 Bargaining Power of Suppliers

                                2.5.2 Bargaining Power of Buyers

                                2.5.3 Threat of New Entrants

                                2.5.4 Threat of Substitute Products

                                2.5.5 Degree of Competition

                2.6 Marketing and Product Placement Overview

                                2.6.1 Distribution Overview

                                2.6.2 Strategies for Distribution

3. 3. Market Segmentation

                3.1 By Client Type

                                3.1.1 Private Wealth management

                                                3.1.1.1 Market Size (USD Millions)

                                                3.1.1.2 Trends

                                                3.1.1.3 Distribution share by products

                                3.1.2 Institutional wealth management

                                                3.1.2.1 Market Size (USD Millions)

                                                3.1.2.2 Trends

                                                3.1.2.3 Distribution share by products

                3.2 By Geography

                                3.2.1 Brazil

                                                3.2.1.1 Market Size (USD Millions)

                                                3.2.1.2 Trends

                                                3.2.1.3 Distribution share by products

                                3.2.2 Mexico

                                                3.2.2.1 Market Size (USD Millions)

                                                3.2.2.2 Trends

                                                3.2.2.3 Distribution share by products

                                3.2.3 Colombia

                                                3.2.3.1 Market Size (USD Millions)

                                                3.2.3.2 Trends

                                                3.2.3.3 Distribution share by products

                                3.2.4 Others

                                                3.2.4.1 Market Size (USD Millions)

                                                3.2.4.2 Trends

                                                3.2.4.3 Distribution share by products

4. Competition Analysis

                4.1 Local Supply Ecosystem

                4.2 Market Share

                4.3 Strategies Adopted, Recent Events

5. Pricing Strategy

6. Government Policies

                6.1 Criteria & Conditions

                6.2 Ministries Involved

7. Sources

8. Disclaimer

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