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.

General facts

1. The 32 biggest wealth managers in the world have a collective market share of just 50 per cent, making the industry one of the most fragmented in global finance – JP Morgan Click To Tweet

2. The global wealth management platform market is anticipated to garner USD 4 Bn, expanding at a noteworthy CAGR of 15% by the end of 2018-2023 – Market Research Future Click To Tweet

3. The global volume of net investable assets of high-net-worth individuals will increase by around 25% to almost US$70 trillion by 2021 - EY Click To Tweet

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

7.  UBS is the top wealth manager in Asia, with US$383bn AUM, followed by Citi at US$256bn and Credit Suisse at US$202bn. - JP Morgan Click To Tweet

Advisors and their clients

8. Personal financial wealth could rise at a CAGR of about 7% from 2017 to 2022 - The Boston Consulting Group Click To Tweet

9.  64% of wealth managers agree that intergenerational wealth transfers will be a big source of new business in the coming years. – Global Data Click To Tweet

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

11. HNWIs, globally, pay an average of US$65,795 in annual fees, which amounts to 8.4% of all assets under management - Capgemini Click To Tweet

12. 45% of clients do not trust their wealth manager or advisor to charge them fairly. - 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

15. 34% of wealth managers currently use AI within their firms, but 99% said that that they plan to deploy AI within the next three years. - Forbes Insights and Temenos Click To Tweet

16. Automated advisors utilizing AI are expected to have assets worth US$2.2 trillion by 2020 - Capgemini Click To Tweet

17. 53.7% of global wealth management firms have hybrid advice programmes underway, but none has a fully implemented solution – World Wealth Report, Capgemini Click To Tweet

18. Leveraging advanced analytics and data can reduce client attrition in the wealth management industry by 10% to 20%. - The Boston Consulting Group Click To Tweet

19. Holistic wealth management will emerge as a new kind of digitalised business model. Holistic wealth managers are expected to gain a market share of 30% by 2025. - EY Click To Tweet

20. Robotic process automation could cut costs for financial services firms by up to 75% - KPMG Click To Tweet

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