The global wealth management market is set for exponential growth through the rest of the decade according to a new report.
Allied Analytics says that the market was worth $1.25 trillion in 2020 and is set to more than double to $3.4 trillion with a 10.7% compound annual growth rate from 2021 to 2030.
North America held the highest market share in terms of revenue in 2020, accounting for more than half of the global wealth management market and is expected to maintain its lead by 2030 thanks to the high level of high-net-worth individuals and competition among big banks.
Among the key drivers are the strong demand for alternative assets which is forecast to surge over the next few years, the growth of fintech, and the impact that wealth management has on reducing financial stress and improving financial plans.
Digitization and wealth technology, plus the untapped potential of emerging markets are also conducive to growth.
However, the report also highlights some factors that may limit growth including regulation, pricing transparency concerns, and high fees.
The report states that the human advisory model account for three-quarters of the global wealth management market in 2020 and is expected to maintain its dominance for the rest of the decade, but robo-advisors are set for a CAGR of more than 26% from 2021-2030.
Traditional wealth managers had two-thirds of the market in 2020 and are also set to maintain their position through 2030, but fintech is forecast to grow at a CAGR of almost 17%.
Why “one big pool of money” needs predictability—and a plan.
Advisor recruiting climbed to its strongest pace in nearly two years, while CEO Richard Steinmeier said the firm has "cleared the decks" for bigger institutional deals.
The combinations involving MirrorWeb and AdvisorRankings illustrate how AI is reshaping both wealth firm operations and wealthtech platforms' business models.
New 5-in-1 onboarding tool aims to cut subscription paperwork as advisor demand for private markets accelerates
Connecting unique offerings with a specific client niche is a sure path to advisor satisfaction and success – but it all has to start with an intentional strategy.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
