Asia-Pacific Wealth Management Market Outlook - 2030
The Asia-Pacific wealth management market size was valued at $247.85 billion in 2020, and is projected to reach $811.50 billion by 2030, growing at a CAGR of 12.7% from 2021 to 2030.
Wealth management is a type of investment advising service that combines investing and financial planning to meet demands of high-net-worth individuals. It entails developing plans to attain specific financial objectives over time, retirement planning, accounting and tax services, estate & legal planning, and generally offering a customized approach as part of the private wealth management services portfolio. These services are mostly provided to high-net-worth individuals (HNIs) who have a professional wealth manager that makes fund allocation recommendations to clients.
Rise in digitalization of wealth management services acts as a major driver for the market. The current generation of high-net-worth (HNW) clients is more inclined to manage their wealth through digital means. In addition, customer loyalty has increased as a result of usage of digital channels for wealth management, since data analytics has enhanced returns on investment (ROI) of investors.
By having a full perspective of consumers, wealth managers have been able to supply personalized offers that investors expect. In addition, wealth management organizations that place a high priority on creating engaging digital experiences for their workers had made it simpler to acquire, keep, and motivate the staff, in addition to enhancing productivity. However, strict rules and regulations by governing bodies on wealth management hamper growth of the market.
On the contrary, technology is anticipated to play a key role in analyzing consumer data and improving overall customer service. Various data analytics and artificial intelligence techniques can assist advisers gain a better understanding of savings of their clients and investing patterns, allowing them to tailor their services accordingly. In addition, robo-advisers are fast to provide prospective customers with a login so that they can get some advice. Thus, these factors are anticipated to provide a potential Asia-Pacific wealth management market growth opportunity in the upcoming.
The report focuses on growth prospects, restraints, and trends of the Asia-Pacific wealth management industry. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Asia-Pacific wealth management market outlook.
The Asia-Pacific wealth management market is segmented on the basis of business model, channel, provider, and end-user type. By business model, the market is differentiated into human advisory, robo-advisory, and hybrid advisory. Depending on channel, it is fragmented into business-to-business (B2B) and direct-to-customer (D2C). The provider covered in the study includes fintech advisors, banks, traditional wealth managers, and others. The end-user type segment is differentiated in retail and high net worth individuals (HNIS). Country wise, the market is further segmented into Singapore, Malaysia, Indonesia, Vietnam, Australia, and rest of Asia-Pacific.
By Business Model
Human Advisory segment accounted for the highest market share in 2020.
The Asia-Pacific wealth management market analysis includes top companies operating in the market such as Bank of America Corporation, BNP Paribas, Charles Schwab & Co., Inc., Citigroup Inc., CREDIT SUISSE GROUP AG, Goldman Sachs, JPMorgan Chase & Co., Julius Baer Group, Morgan Stanley, and UBS. These players have adopted various strategies to increase their market penetration and strengthen their position in the Asia-Pacific wealth management industry.
COVID-19 Impact Analysis
Physical lockdowns across countries during the COVID-19 health crisis caused wealth management businesses to substitute face-to-face meetings with virtual conversations to fulfil customer demands. In addition, conventional wealth management organizations faced significant difficulties from digital adoption of rival. In contrast, technological advancements inspire wealth executives to prioritize digital transformation in their current company strategy. This, in turn, has become one of the major growth factors for the Asia-Pacific wealth management market during the global health crisis.
FinTech Advisors segment will grow at a highest CAGR of 19.4% during 2021 - 2030
Top Impacting Factors
Emergence of FinTechs
Wealth managers are increasingly investing in new technologies such as robo-advisor, artificial intelligence (AI), robotic process automation, and digital identification (ID) technologies for improving customer experience, FinTechs (Financial technology) have largely disrupted wealth management industry. FinTechs includes a wide range of new technology used to improve and automate the delivery of financial services. Moreover, robo-advisor technology is increasingly used among wealth management providers, as it involves automated & algorithm-based systems to provide customized portfolio management advices to the customers. Growth in FinTechs therefore enhances efficiency and transparency in fidelity wealth management business operations, which, as a result is significantly fueling the market growth in the region.
Growing Demand for Wealth Management Products and Services
Factors such as huge customized & personalized products & services, help in eliminating financial stress & creating financial plans, and massive incorporation of digitalized offerings are contributing toward the market growth. With combining investment and financial counseling, wealth management providers help in forming strategies as per the personal requirements of an individual and offers a completely personalized service from the expert and ensures quality services. Moreover, wealth management services for retirement has increased tremendously, as individual holding huge pensions that can help pay for bills & day-to-day needs, and further plan for retirement portfolio. These major benefits provided by wealth management products & services is boosting the market growth.
Increased adoption of advanced technologies such as chatbots, robo-advisors, IoT, AI, and big data analytics have led toward the growth of Asia-Pacific wealth management market. In addition, with increase in digitalization, wealth management providers are looking forward to quickly invest on client engagement by providing digital and voice-enabled assistants.
Moreover, chatbots, which is a software application used to conduct an on-line chat conversation, are largely used by wealth management firms, as they help in offering more personalized & user-friendly experience than mobile applications. In addition, with their use of natural language processing & machine learning capabilities, chatbots answer questions, monitor transactions, place orders, and perform screening functions remotely.
Implementation & investment in technologies help wealth managers to remain competitive, achieve deep insight into the products & services offered, and improve operational efficiency for both the front and back office activities. Therefore, the possibilities of technological advancements are unlimited, which are expected to create remunerative opportunities for the growth of the Asia-Pacific wealth management market.
Vietnam would exhibit the highest CAGR of 31.6% during 2021-2030
Key Benefits For Stakeholders
- The study provides in-depth analysis of the Asia-Pacific wealth management market share along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the Asia-Pacific wealth management market trends are provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the Asia-Pacific wealth management market.
- The quantitative analysis of the Asia-Pacific wealth management market forecast from 2021 to 2030 is provided to determine the market potential.
Asia-Pacific Wealth Management Market Report Highlights
By Business Model
By End-user Type
By Key Market Players
Rapid technological and digital improvements, many of which are aimed directly at consumers and need faster innovation cycles, which compel organizations to reconsider their business, technology, and client interaction strategies. Moreover, increasingly shifting legislation continue to alter the playing ground for wealth management organizations, a process that is far from complete and necessitates the modification of business models, is driving the market growth. In addition, for wealth management businesses, data and analytics are increasingly becoming critical differentiators, allowing them to service clients more effectively and create relevant, timely, and actionable insights for both clients and advisors.
The COVID-19 outbreak has had an influence on wealth management in numerous ways. Clients were also concerned about their financial well-being as a result of the global financial markets' uncertainty as a result of the lockdown measures.
The Asia-Pacific wealth management market is fragmented with presence of regional vendors such as Charles Schwab & Co., Inc., Citigroup Inc., and Morgan Stanley. Some of the key players profiled in the Asia-Pacific wealth management market report include Bank of America Corporation, BNP Paribas, CREDIT SUISSE GROUP AG, Goldman Sachs, JPMorgan Chase & Co., Julius Baer Group, and UBS. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With increase in awareness & demand for wealth management across the region, major players are collaborating their product portfolio to provide differentiated and innovative products.