Market Size of Latin America Wealth Management Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 1.18 Trillion |
Market Size (2029) | USD 1.32 Trillion |
CAGR (2024 - 2029) | 2.34 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Latin America Wealth Management Market Analysis
The Latin America Wealth Management Market size in terms of assets under management value is expected to grow from USD 1.18 trillion in 2024 to USD 1.32 trillion by 2029, at a CAGR of 2.34% during the forecast period (2024-2029).
Latin American market has been witnessing traditional Private banks as their major player in channelizing the wealth of most of the retail investors. Still, with the decrease in the interest rates and growth of middle-class investors, the retail investors began opting the other alternatives investment. Hence, the share of private banks in total asset management of Latin America slowed down. In Latin America, where the major economies were struggling, the HNWI population grew the least globally, by -0.2%, while HNWI wealth increased by a meagre 1.8%. HNWI wealth increased in Argentina, Brazil, and Mexico, while the decrease in HNWI wealth in other LATAM regions countered the growth. Together, these three markets account for 71% of LATAM's HNWI population and 83% of its HNWI wealth, and they had 0.3% and 2.4% growth in both population and wealth, respectively. Gains were offset by weakness in other LATAM economies, where the population of HNWIs fell by 1.5%, and wealth fell by 1.0%. The Asset under Management (AuM) has most of the assets remaining in the form of Mutual funds. It is expected to increase at a double-digit rate throughout the forecast period.
In 2020, COVID-19 hit the Latin American Wealth Management Market badly. This was the year of the devastating coronavirus pandemic, and the impact of the lockdown forced the economy to go downward. Despite the pandemic, global wealth increased for the year. Global high net worth individual (HNWI) population and financial wealth increased by 6.3% and 7.6%, respectively. The unprecedented stock market gains in the key market increased the HNWI wealth. A similar scenario was seen in the Latin America Wealth market. Although the HNWI population decreased by 4%, the wealth of HNWI increased by 0.5%.
The large private Banks manage the majority of AuM, but with the increase in the wealth of wealthy families, the number of Family offices managing their money is also increasing.
Latin America Wealth Management Industry Segmentation
A wealth management platform is an advisor platform that provides a client's complete wealth overview, financial goal planning, and portfolio management capabilities. Latin AmericaWealth Management is one of the growing and highly demanded Wealth Management markets as people prefer the AuM from technology-driven and innovative platforms for which the Latin America wealth management firms are found much more efficient. A complete background analysis of the Latin America Wealth Management Market includes an assessment of the economy, a market overview, market size estimation for key segments, emerging market trends, market dynamics, and key company profiles are covered in the report. The Latin America Wealth Management Market is segmented by client type, wealth management firm type, and by geography. By Client Type, the market is segmented into HNWI, Retail/ Individuals, Mass Affluent, and Others. By Wealth Management Firm Type the market is segmented into Private Bankers, Family Offices, and Others. The report also covers the market sizes and forecasts for the Latin America Wealth Management Market across key countries (Brazil, Chile, Peru, Colombia, and the Rest of Latin America). The report offers Market size and forecasts for Latin America Wealth Management Market in value (USD Million) for all the above segments.
By Client Type | |
HNWIs | |
Retail/ Individuals | |
Mass Affluent | |
Others |
By Wealth Management Firm Type | |
Private Bankers | |
Family Offices | |
Others |
By Geography | |
Brazil | |
Chile | |
Peru | |
Colombia | |
Rest of Latin America |
Latin America Wealth Management Market Size Summary
The Latin America Wealth Management Market is expected to experience growth in the coming years, with a significant increase in assets under management value. The market has traditionally been dominated by private banks, which have been the main channel for the wealth of retail investors. However, with the decrease in interest rates and the growth of middle-class investors, retail investors have begun to explore alternative investment options. This has led to a slowdown in the share of private banks in total asset management in Latin America. Despite economic struggles in major economies, there has been an increase in high net worth individual (HNWI) wealth in countries like Argentina, Brazil, and Mexico. Most of the assets under management remain in the form of mutual funds, which are expected to increase at a considerable rate throughout the forecast period. The COVID-19 pandemic had a significant impact on the Latin American Wealth Management Market in 2020, causing a downward trend in the economy. However, global wealth increased for the year, with an unprecedented stock market gain in key markets contributing to an increase in HNWI wealth. A similar trend was observed in the Latin American Wealth market, with an increase in HNWI wealth despite a decrease in the HNWI population. The majority of assets under management are managed by large private banks, but the number of family offices managing their money is also increasing. The demands of investors are shifting, but their need for high returns remains constant, leading to a predicted growth in the popularity of alternative assets.
Explore MoreLatin America Wealth Management Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Industry Value Chain Analysis
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1.5 Industry Attractiveness - Porter Five Forces
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1.5.1 Threat of New Entrant
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1.5.2 Bargaining Power of Buyers/ Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Product
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insights of Technology Innovations in the Market
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Client Type
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2.1.1 HNWIs
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2.1.2 Retail/ Individuals
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2.1.3 Mass Affluent
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2.1.4 Others
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2.2 By Wealth Management Firm Type
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2.2.1 Private Bankers
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2.2.2 Family Offices
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2.2.3 Others
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2.3 By Geography
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2.3.1 Brazil
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2.3.2 Chile
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2.3.3 Peru
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2.3.4 Colombia
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2.3.5 Rest of Latin America
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Latin America Wealth Management Market Size FAQs
How big is the Latin America Wealth Management Market?
The Latin America Wealth Management Market size is expected to reach USD 1.18 trillion in 2024 and grow at a CAGR of 2.34% to reach USD 1.32 trillion by 2029.
What is the current Latin America Wealth Management Market size?
In 2024, the Latin America Wealth Management Market size is expected to reach USD 1.18 trillion.