There are expected to be 7.7 million more high-net-worth-individuals (HNWIs) in the world by 2023, according to a report by wealth data business, Wealth-X. This equates to $20.9trn of newly created wealth in the next five years, presenting a huge growth opportunity for the global wealth management industry.
As such, we’ve decided to compile a short list of interesting statistics on the global wealth management industry – taking into account the current state of the industry, future growth prospects and what HNWIs expect from their advisors.
We also take a look at how wealth management firms are using technology, and how they plan to do so in the future, considering aspects such as the use of AI and robo-advisors.
4. Residents of North America held nearly 43% of global personal wealth in 2017, followed by Western Europe with 22%. The strongest-growing region in 2017 was Asia, which posted a 19% increase. - The Boston Consulting Group Click To Tweet
Asia in the lead
5. The Asia Pacific asset and wealth management industry will grow faster than in other regions with assets under management (AUM) expected to almost double to US$29.6trn in 2025 from US$15.1trn in 2017 - PwC Click To Tweet
6. China has witnessed the emergence of large third-party online wealth management platforms, such as Lufax and Ant Financial. The combined AuM of these platforms has risen at a CAGR of 50% over the past five years. - The Boston Consulting… Click To Tweet
Advisors and their clients
10. The use of independent financial advisors is expected to rise rapidly, with an 18% increase in clients globally who expect to use independent advisors in the next three years, and a 14% increase for independent advisory firms - EY Click To Tweet
13. Wealth managers can achieve a revenue uplift of from 8% to 12% by adjusting price levels, correcting unnecessary discounts and simplifying overall pricing structures. - The Boston Consulting Group Click To Tweet
14. Over 70% of wealth management clients see highly personalised service as a key factor in deciding whether to stay with their current provider or switch to another. - The Boston Consulting Group Click To Tweet
Tech and AI
21. According to a report released in September 2016, cybersecurity is a high priority for 81% of advisors, but only 29% are fully prepared to manage and mitigate the risks associated with cybersecurity. – FPA Research and Practice Institute Click To Tweet