The Latest Global Wealth Management Industry Statistics Explained
In 2020, the global wealth management industry was valued at approximately 584.11 billion U.S dollars.
The statistic that in 2020, the global wealth management industry was valued at approximately 584.11 billion U.S dollars indicates the significant scale and economic importance of this sector. Wealth management involves the professional management of high net worth individuals’ investments and financial assets to help them grow and preserve their wealth. The industry’s substantial value showcases the extent to which individuals and institutions across the world prioritize professional advice and expertise in managing their financial resources. The figure also reflects the increasing wealth accumulation and the growing need for sophisticated financial services in today’s global economy. This statistic underscores the vital role that wealth management plays in the financial ecosystem and highlights the increasing emphasis on wealth preservation and growth strategies by individuals and organizations worldwide.
It is expected that by 2025, the global wealth management market will reach a size of 1,145.25 billion U.S dollars.
The statistic that by 2025, the global wealth management market is projected to reach a size of 1,145.25 billion U.S dollars indicates a significant growth trajectory in the wealth management industry in the coming years. This forecasted figure suggests a notable increase in the total value of assets under management and highlights the growing importance of wealth management services worldwide. Factors driving this growth may include increasing wealth accumulation, expanding investment opportunities, evolving regulatory environments, and advancements in financial technology. This statistic underscores the potential for continued expansion and innovation within the wealth management sector, as financial institutions adapt to meet the needs of an increasingly affluent and diverse client base on a global scale.
The global financial wealth grew 14% in 2019 to reach USD 250.1 trillion.
The statistic that the global financial wealth grew by 14% in 2019 to reach USD 250.1 trillion indicates a significant increase in wealth accumulation worldwide within a single year. This growth reflects positive economic conditions and investment opportunities that have driven up the total value of financial assets held globally. Such substantial growth may be attributed to various factors such as strong stock market performance, increased investment activities, and overall economic expansion in multiple regions. This statistic suggests that individuals, businesses, and institutions have experienced improved financial prosperity and enhanced wealth accumulation during the specified time period.
North America leads the pack with 41.3% share of global wealth in 2020.
The statistic “North America leads the pack with 41.3% share of global wealth in 2020” indicates that North America, including countries such as the United States and Canada, held the largest portion of wealth compared to other regions worldwide. This means that nearly half of the world’s total wealth was concentrated in North America in the year 2020. This high share of global wealth implies significant economic power and prosperity in the region, potentially influencing global economic trends and decision-making. The statistic highlights the substantial economic influence and wealth accumulation in North America relative to other regions across the globe.
Europe follows closely with 29.7% share of global personal financial wealth.
This statistic indicates that Europe holds a significant portion of the world’s personal financial wealth, with 29.7% of the global share attributed to the region. This suggests that individuals in Europe collectively possess a substantial amount of wealth compared to other regions around the world. The high percentage highlights Europe’s economic prosperity and wealth distribution among its population. Additionally, it implies that Europe plays a key role in the global financial landscape and has considerable influence on the world economy due to its significant share of personal financial wealth.
Asia (excluding Japan) houses about 24.2% of global financial wealth.
The statistic that Asia (excluding Japan) houses about 24.2% of global financial wealth indicates the significant economic presence and growth of the region within the global financial landscape. This statistic suggests that a substantial portion of the world’s financial resources, such as money, assets, and investments, are held in Asian countries excluding Japan. The accumulation of wealth in this region points towards the increasing economic power and influence of countries like China, India, South Korea, and others in driving the global economy. This statistic underscores the importance of Asia in the world economy and highlights the potential for further growth and development in the region.
Middle East and Africa has 2.3% of the global wealth.
The statistic “Middle East and Africa has 2.3% of the global wealth” indicates that the combined wealth of countries in the Middle East and Africa region accounts for 2.3% of the total wealth amassed worldwide. This statistic highlights the economic disparity between different regions of the world, showing that a relatively small portion of global wealth is concentrated in the Middle East and Africa compared to other regions. It also suggests potential disparities in income distribution and development levels between countries in this region and those in other parts of the world. Understanding such statistics is crucial for policymakers, economists, and organizations aiming to address global economic inequalities and promote sustainable development goals.
Latin America represents 2.5% of the global wealth.
The statistic that Latin America represents 2.5% of the global wealth means that the combined wealth of all countries in Latin America accounts for approximately 2.5% of the total wealth in the world. This statistic provides insight into the economic significance and contribution of Latin American countries to the global economy. It suggests that Latin America’s share of wealth is relatively small compared to other regions, highlighting potential disparities in wealth distribution and economic development. Understanding this statistic can inform discussions on economic policies, social welfare, and international trade relationships within Latin America and with other regions around the world.
About 44% of global HNWIs want a dedicated relationship manager from their wealth management firm.
This statistic indicates that approximately 44% of high net worth individuals (HNWIs) worldwide prefer to have a dedicated relationship manager from their wealth management firm. This implies that a significant portion of HNWIs values personalized, one-on-one attention and support in managing their wealth and financial affairs. By having a dedicated relationship manager, these individuals may benefit from tailored financial advice, investment strategies, and personalized service that meets their specific needs and preferences. This statistic underscores the importance of strong client relationships and personalized services in the wealth management industry to cater effectively to the demands and expectations of HNWIs.
In 2012, 26 annual billionaires were created in the global wealth management industry.
The statistic that in 2012, 26 annual billionaires were created in the global wealth management industry indicates that over the course of that year, 26 individuals in the wealth management sector accumulated enough wealth to become classified as billionaires. This statistic serves as a measure of the significant financial success and accumulation of wealth within the wealth management industry during that year. It suggests that there were considerable opportunities for wealth creation in this particular sector and that a significant number of individuals were able to capitalize on these opportunities to amass substantial wealth. This statistic may also reflect broader trends in the global economic landscape and the growth of the wealth management industry as a lucrative sector for wealth generation.
Digital spending by wealth management firms could reach $24 billion globally by 2023.
The statistic indicates that wealth management firms are projected to increasingly allocate resources towards digital technologies and services, with global spending expected to reach $24 billion by 2023. This trend suggests a significant shift within the industry towards leveraging digital advancements to enhance customer experiences, streamline operational processes, and drive overall growth and competitiveness. The substantial investment in digital tools and platforms by wealth management firms reflects their recognition of the importance of technology in meeting the evolving preferences and needs of clients, as well as staying ahead in a rapidly changing financial landscape.
More than 50% of wealth management clients worldwide now communicate with their advisors through digital channels.
The statistic indicates that a significant majority of wealth management clients around the world prefer to engage with their advisors through digital mediums rather than traditional in-person meetings or phone calls. This shift in communication behavior reflects the growing reliance on technology and convenience in the financial industry, with clients increasingly comfortable utilizing digital channels such as email, video calls, messaging apps, and online portals to interact with their financial advisors. The trend suggests that wealth management firms need to adapt their practices to accommodate clients’ preferences for digital communication and tailor their services to meet the evolving needs of the modern investor.
In Asia Pacific region, the wealth management industry is expected to grow at a CAGR of nearly 15% until 2023.
The statistic suggests that the wealth management industry in the Asia Pacific region is projected to experience substantial growth over the coming years, with a Compound Annual Growth Rate (CAGR) of close to 15% up to 2023. This indicates a strong and continuous expansion in the industry, driven by factors such as rising wealth levels, increasing demand for financial services, and advancements in technology facilitating easier access to investment opportunities. Such growth forecasts point towards significant opportunities for wealth management firms and financial institutions operating in the Asia Pacific region, signaling a favorable outlook for the industry in terms of increasing assets under management and expanding market presence.
Female investors control about 32% of the world’s wealth and are growing faster than men in creating new wealth.
The statistic highlights that female investors currently hold approximately 32% of the world’s wealth and are experiencing faster growth in creating new wealth compared to their male counterparts. This suggests a noticeable shift in the financial landscape towards increased female participation and success in investing and wealth creation. The increased presence of women in the investment sector signifies broader economic empowerment and gender equality, with the potential to bring about positive social and economic impacts. It also reflects changing dynamics in the financial industry, emphasizing the importance of diversity and inclusivity in driving global economic growth and prosperity.
By revenue, BNY Mellon is the largest wealth management company in the world with a market capitalization of over $50 billion.
The statistic provided indicates that BNY Mellon, a financial services company, holds the top position in the global wealth management industry based on revenue. With a market capitalization exceeding $50 billion, BNY Mellon demonstrates its significant presence and financial strength in the market. This ranking suggests that BNY Mellon manages the highest amount of wealth compared to other companies in the industry, highlighting its success in generating revenue from wealth management services. The market capitalization figure of over $50 billion underscores the company’s standing as a key player in the wealth management sector and implies a high level of investor confidence in its performance and potential for growth.
About $68.1 trillion is expected to be transferred from older to younger generations over the next 25 years in North America.
The statistic that about $68.1 trillion is expected to be transferred from older to younger generations over the next 25 years in North America refers to the anticipated intergenerational wealth transfer within the region. This transfer is significant as it represents the movement of accumulated assets, investments, and inheritance from older generations to their younger counterparts. Such transfers can have substantial implications for the economy, individuals, and society as a whole, influencing wealth distribution, economic opportunities, and social mobility. The magnitude of this transfer underscores the importance of financial planning, asset management, and preparing future generations to responsibly handle and make the most of the wealth they are set to inherit.
As of the end of 2020, wealth management institutions in China managed a total of RMB 120 trillion assets.
The statistic indicates that as of the end of 2020, wealth management institutions in China collectively oversaw a staggering RMB 120 trillion in assets. This figure represents the total value of financial assets under management by various institutions operating in the wealth management sector within China. The significant size of this total asset value underscores the growing importance of wealth management activities within the Chinese financial industry and highlights the substantial amount of wealth being managed for individuals and organizations in the country. It also suggests the potential impact and influence these institutions have on the broader economy and financial markets in China.
In 2020, the number of global High Net Worth Individuals (HNWIs) grew by 2.9% to reach 20.3 million.
In 2020, the number of global High Net Worth Individuals (HNWIs) increased by 2.9% compared to the previous year, reaching a total of 20.3 million individuals worldwide. This statistic indicates a positive trend in wealth accumulation and economic growth among affluent individuals. The rise in the number of HNWIs suggests potentially increased investment activity, consumer spending, and overall economic prosperity. It also reflects a widening wealth gap between the wealthy elite and the rest of the population. Overall, the expansion of the HNWI population in 2020 underscores the significance of wealth distribution and its implications for global economic dynamics and societal inequalities.
The global wealth management industry has seen tremendous growth in 2020, with a market share of around USD 7.19 trillion.
The statistic indicates that the global wealth management industry experienced significant expansion in 2020, with a market share estimated at approximately USD 7.19 trillion. This growth suggests that there was a substantial increase in the overall value of assets under management by wealth management firms worldwide during the specified period. Factors contributing to this growth could include strong market performance, increased demand for wealth management services, and the implementation of effective investment strategies by wealth managers. The sizeable market share of USD 7.19 trillion highlights the importance and scale of the wealth management industry in facilitating the management and growth of vast amounts of wealth on a global scale.
Wealth managers who combine Digital capabilities and human advice are growing 4x Faster than those with a traditional business model.
This statistic suggests that wealth managers who integrate digital capabilities alongside human advice in their business model are experiencing faster growth compared to those who solely rely on a traditional approach. The 4x faster growth rate implies a significant competitive advantage for firms that leverage both technology and personal interaction to serve their clients. By embracing digital tools, such as online platforms for portfolio management or financial planning apps, wealth managers can enhance efficiency, reach a broader client base, and provide more personalized services. By combining the advantages of digital innovation with the human touch of personalized advice, these wealth managers can cater to the evolving needs of today’s clients and subsequently outpace their peers in terms of growth and success in the industry.
References
0. – https://www.www.statista.com
1. – https://www.www.globenewswire.com
2. – https://www.www.deloitte.com
3. – https://www.www2.deloitte.com
4. – https://www.www.mckinsey.com
5. – https://www.www.chinadaily.com.cn
6. – https://www.www.fortunebusinessinsights.com
7. – https://www.www.researchandmarkets.com
