GITNUX MARKETDATA REPORT 2024

The Most Surprising Wealth Management Industry Statistics And Trends in 2024

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The global wealth management industry is an ever-evolving sector that has seen tremendous growth in recent years. According to a report by Business Wire, the industry reached $89.8 trillion in assets under management (AUM) in 2020 and is projected to reach $100 trillion AUM by 2025. This article will explore some of the key statistics related to this dynamic field, including digital engagement trends among clients, revenue growth for U.S.-based firms, adoption of artificial intelligence (AI), generational preferences for ESG investments, private banking market size and more.

The Most Important Statistics
The global wealth management industry reached $89.8 trillion in assets under management (AUM) in 2020. This statistic is a testament to the immense size and scope of the wealth management industry. It highlights the sheer amount of assets that are managed by wealth management firms, demonstrating the industry’s importance in the global economy. It also serves as a reminder of the potential for growth in the industry, as more and more people seek out professional advice and assistance in managing their finances. 75% of wealth management clients plan to increase their digital engagement in the next year. This statistic is a telling indication of the direction the Wealth Management industry is heading. It shows that the majority of clients are looking to increase their digital engagement, which suggests that the industry is shifting towards a more digital-focused approach. This statistic is important for anyone interested in the Wealth Management industry, as it provides insight into the current trends and the direction the industry is likely to take in the near future.

Wealth Management Industry Statistics Overview

During Q3 2020, U.S. wealth management firms reported an average revenue growth of 2.1%.

This statistic is a testament to the resilience of the wealth management industry in the face of the economic downturn caused by the COVID-19 pandemic. Despite the challenges posed by the pandemic, U.S. wealth management firms were able to maintain a steady rate of growth, demonstrating the strength of the industry. This statistic is a valuable insight into the current state of the wealth management industry and provides a positive outlook for the future.

62% of wealth managers believe that adopting artificial intelligence (AI) is essential for the future success of their business.

This statistic is a powerful indicator of the direction the Wealth Management industry is heading. It shows that the majority of wealth managers recognize the importance of AI in order to remain competitive and successful in the future. This statistic is a clear sign that the Wealth Management industry is embracing the potential of AI and is actively looking for ways to leverage it to their advantage.

Around 66% of private wealth in the U.S. is held by individuals aged 60 and over.

This statistic is a telling indication of the importance of the Wealth Management Industry. It highlights the fact that the majority of private wealth in the U.S. is held by individuals aged 60 and over, which means that the Wealth Management Industry is essential for helping these individuals manage and protect their wealth. This statistic is a reminder of the importance of the Wealth Management Industry in helping individuals of all ages to manage their wealth and ensure their financial security.

The top 20 private banks worldwide held $12.8 trillion of AUM in 2020.

This statistic is a testament to the sheer size and scope of the wealth management industry. It highlights the immense amount of assets that the top 20 private banks worldwide are responsible for managing, demonstrating the immense trust that investors have placed in these institutions. This statistic is a powerful reminder of the importance of the wealth management industry and the trust that it has earned from its clients.

In 2019, asset inflows into the wealth management industry increased by only 1%, compared to 5% in 2018.

This statistic is indicative of a shift in the wealth management industry, as the rate of asset inflows has slowed from 5% to 1%. This could be a sign of a changing landscape in the industry, and could be a cause for concern for those involved in the wealth management sector. It is important to consider this statistic when discussing the current state of the wealth management industry, as it could be a sign of a potential downturn in the industry.

In 2018, the average return on assets (ROA) for wealth management firms was 77 basis points.

The statistic of the average return on assets (ROA) for wealth management firms in 2018 being 77 basis points is a key indicator of the success of the wealth management industry. It shows that the industry is able to generate a healthy return on investments, which is a sign of a thriving sector. This statistic is important for investors to consider when deciding whether to invest in the wealth management industry, as it provides an indication of the potential returns they could expect. Additionally, it is also a useful benchmark for wealth management firms to measure their performance against.

The use of robo-advisors is projected to increase to $1.26 trillion AUM by 2023 in the wealth management industry.

This statistic is a powerful indicator of the growing trend of robo-advisors in the wealth management industry. It shows that more and more investors are turning to automated investment services to manage their portfolios, and that the industry is projected to grow significantly in the coming years. This is an important statistic to consider when discussing the current state of the wealth management industry, as it provides insight into the future of the industry and the potential opportunities for investors.

The average tenure of wealth management clients in the U.S. is approximately 9.3 years.

This statistic is a telling indication of the trust and loyalty that U.S. wealth management clients have in their advisors. It speaks to the quality of service and expertise that wealth management firms are providing, as clients are willing to stay with them for an average of 9.3 years. This statistic is a testament to the success of the wealth management industry in the U.S. and provides a benchmark for other firms to strive for.

Women made up just 15.9% of all financial advisors in the U.S. wealth management industry in 2019.

This statistic is a stark reminder of the gender gap that exists in the U.S. wealth management industry. It highlights the need for greater diversity and inclusion in the industry, as well as the need for more female representation in the field. It also serves as a reminder of the importance of creating an environment that is welcoming and supportive of women in the industry, and of the need to ensure that women have access to the same opportunities as their male counterparts.

In 2021, over 60% of global wealth management firms have invested in integrating cryptocurrency-related services.

This statistic is indicative of a major shift in the wealth management industry, as more and more firms are recognizing the potential of cryptocurrency-related services. It shows that the industry is adapting to the changing landscape of finance, and that firms are willing to invest in new technologies to stay competitive. This is an important development for the industry, as it demonstrates that wealth management firms are embracing the future of finance.

The U.S. wealth management industry saw 2,892 M&A deals from 2012 to 2020.

This statistic is a testament to the dynamism of the U.S. wealth management industry, demonstrating that it is a highly active sector with a great deal of activity in terms of mergers and acquisitions. It is indicative of the industry’s growth and evolution over the past eight years, and provides a valuable insight into the current state of the industry.

The global wealth management industry is projected to reach $100 trillion AUM by the end of 2025.

This statistic is a testament to the immense potential of the wealth management industry. By 2025, the industry is projected to reach a staggering $100 trillion in assets under management, indicating that the industry is on the cusp of a major growth spurt. This is an exciting development for investors, as it means that the wealth management industry is likely to become an increasingly important part of the global financial landscape.

The top four countries with the most wealth management AUM in 2020 are the United States, China, Germany, and Japan.

This statistic is a telling indication of the global wealth management industry’s current state. It reveals that the United States, China, Germany, and Japan are the four countries with the most wealth management assets under management (AUM) in 2020. This highlights the importance of these countries in the wealth management industry and provides insight into the industry’s current trends. It also serves as a benchmark for other countries to measure their progress in the wealth management industry.

Conclusion

The wealth management industry is a rapidly growing sector, with global AUM reaching $89.8 trillion in 2020 and projected to reach $100 trillion by 2025. This growth has been driven by an increase in digital engagement from clients, as well as the rise of UHNW households and demand for ESG investments among Millennials and Gen X generations. Wealth managers have also seen success through M&A deals, solo advisors gaining more traction during the pandemic, and investment into cryptocurrency-related services. However, there are still challenges that need to be addressed such as skills gaps within their workforce and low representation of women financial advisors. As this industry continues to evolve over time it will be interesting to see how these trends develop further in order to meet client needs while maintaining profitability for firms involved in wealth management services worldwide

References

0. – https://www.gfmag.com

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3. – https://www.businessinsider.com

4. – https://www.oliverwyman.com

5. – https://www.cnbc.com

6. – https://www.fenergo.com

7. – https://www.mckinsey.com

8. – https://www.statista.com

9. – https://www.pwc.com

10. – https://www.businesswire.com

11. – https://www.privatebankerinternational.com

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Srive – Wealth Management Industry Statistics

FAQs

What is the primary purpose of the wealth management industry?

The primary purpose of the wealth management industry is to provide comprehensive financial services and advice to clients, including investment management, financial planning, tax planning, estate planning, and risk management, in order to grow, protect, and distribute their wealth.

What is the difference between wealth management and asset management?

Wealth management is a comprehensive financial service that focuses on the holistic needs of high net worth individuals and families, including financial planning, estate planning, and risk management, whereas asset management solely focuses on the investment management aspect of a client's financial portfolio.

How do wealth management firms typically charge fees for their services?

Wealth management firms usually charge fees based on a percentage of assets under management (AUM), hourly rates, fixed fees, or a combination of these fee structures. The fee structure may vary depending on the complexity and customization of the services provided.

What are the key drivers for growth in the wealth management industry?

The key drivers for growth in the wealth management industry are an aging population, increasing household wealth, growth in the number of high net worth individuals (HNWIs), technological advancements facilitating digital wealth management services, and globalization, which has resulted in more cross-border investments and complex financial needs.

How has technology impacted the wealth management industry in recent years?

Technology has significantly impacted the wealth management industry by introducing digital wealth management platforms, known as robo-advisors, that use algorithms and automation to provide cost-effective investment solutions. Additionally, advanced analytical tools and artificial intelligence have improved investment decision-making, risk management, and the overall efficiency in servicing clients.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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