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

Analysis of North 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. Wealth manager client AUM (Assets Under Management) grew 13% in 2013, mostly driven by market performance as net inflows contributed only 2.3%. The wealth management industry in North America is poised for growth at an estimated CAGR of XX.X% over the forecast period, from 2016 to 2021. The projected market value of the wealth management sector by 2021 is USD XXXX.XX million.

Drivers

High competition in the sector is a major driver. Banks like UBS, Morgan Stanley, and Bank of America Merrill Lynch offer good wealth management deals and try to offer the maximum benefits to their clients. The wealth management industry in North America includes different types of wealth managers, in addition to private banks. Independent broker-dealers (IBD’s), wirehouses, independent advisors and MFO’s 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. The reason for these trust issues is the recent economic crises that significantly reduced client trust in wealth management. Firms are opting for new operational models to compete effectively in the changing scenario and recover their losses. Hence, it may be very difficult for a new player to find a place in the market as the market is very tight and the competition is fierce. The traditional wealth management techniques might not be appreciated, and the advisors need to adjust themselves to the new expectations of their clients and adopt new technologies. Meanwhile, institutions will actively engage in reshaping the business to adapt and thrive in the wealth management environment.

Opportunities

The number of millionaires in North America increased to 4.68 million in 2014, from 3.12 million in 2009. This growing trend can be observed in the future too. As the number of HNW people, increases so do the opportunities in the wealth management sector. The margins in wealth management are good, which helps private banks build more corporate connections. Over half the baby boomer population (those born between 1945-1965) is included in the mass affluent segment. This population will require financial advice for retirement planning in the coming decade, having accumulated significant wealth, which will present further opportunities for wealth management.

Key Developments

  • USD 35.1 trillion was the value of North American wealth by AUM in 2009 of which the USA contributed about 90%-93%.
  • The mass affluent segment includes around 33 million individuals, of which 18% do not have a financial plan.
  • Client preferences are trending towards secured and safer products related to cash and debt.

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 USA

                                                3.2.1.1 Market Size (USD Millions)

                                                3.2.1.2 Trends

                                                3.2.1.3 Distribution share by products

                                3.2.2 Canada

                                                3.2.2.1 Market Size (USD Millions)

                                                3.2.2.2 Trends

                                                3.2.2.3 Distribution share by products

                                3.2.3 Mexico

                                                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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