The 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. The number of millionaires is expected to increase to more than 18 million, by 2018, despite slower global economic growth. The global wealth management industry 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.
From 2008 till the end of 2013, the millionaire wealth had grown by 8.7%, annually, totalling at USD 51 trillion by the end of 2013. The growth in millionaire wealth has been immense after the economic crisis, and it has been driving the sector, globally. Moreover, high competition in the sector is another major driver. Private banks, independent broker-dealers (IBD’s), wirehouses, independent advisors, etc., are putting their best efforts in customer acquisition strategies, as all of them compete to capture clients in the High Net Worth (HNW) and Ultra High Net Worth (UHNW) segments.
Restraints and Challenges
Trust is one of the major issues as the recent economic crises significantly reduced the client trust in wealth management. Firms are opting for new operational models to compete effectively in the changing scenario and recover their losses instead of using traditional methods of wealth management. Competition is fierce and it might be very difficult for a new company to settle in the sector and make profits. Some people fear that the situation in the coming years will be like the one in 2008 and are satisfied with keeping their money in banks rather than risking them elsewhere.
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), which is included in the mass affluent segment. This population is expected to require financial advice for retirement planning in the coming decade, having accumulated significant wealth, which will present further opportunities for wealth management. The start-up culture in Asia and the USA also leaves the investors with a lot of thinking to do, and wealth managers help these investors to pick the right amount for the right company.
- USD 35.1 trillion was the value of the North American wealth by AUM in 2009, of which the USA contributed about 90%-93%.
- Wealth managers in India have now started focusing on Tier II and Tier III cities.
- In China, despite all the ups and downs in 2015, data from the securities association for the year showed roughly USD 90 billion in industry operating income, a 121% increase year-on-year.
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.
- 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.
- 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
1.1 Definition of the Market
1.2 Research Approach and Methodology
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
2.4 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
22.214.171.124 Market Size (USD Millions)
126.96.36.199 Distribution share by products
3.1.2 Institutional wealth management
188.8.131.52 Market Size (USD Millions)
184.108.40.206 Distribution share by products
3.2 By Geography
3.2.1 North America
220.127.116.11 Market Size (USD Millions)
18.104.22.168 Distribution share by products
22.214.171.124 Market Size (USD Millions)
126.96.36.199 Distribution share by products
188.8.131.52 Market Size (USD Millions)
184.108.40.206 Distribution share by products
220.127.116.11 Market Size (USD Millions)
18.104.22.168 Distribution share by products
3.2.5 Latin America
22.214.171.124 Market Size (USD Millions)
126.96.36.199 Distribution share by products
3.2.6 Rest of the World
188.8.131.52 Market Size (USD Millions)
184.108.40.206 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