Europe Wealth Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Europe Wealth Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The COVID-19 pandemic had a significant impact on the European economy. Investments, transactions, and other financial services got a surprising shock as the effects of the pandemic. The sudden spread of the COVID-19 crisis has had a negative impact on Europe. European countries took stringent measures to combat the viral infection and limited its human-to-human spread, including the closure of numerous commercial and industrial operations. as a result, wealth management companies have been moderately impacted.

With more than EUR 20 trillion of financial assets held by individuals, Europe represents one of the largest wealth management opportunities in the world. The margins in wealth management are one of the best in some of its countries, and it helps private banks build more corporate connections. Hence, many banks are putting in more manpower and technologically driven platforms into the wealth management division.

Trust in wealth managers and financial markets is led by the London Stock exchange, and some German and Frech Wealth Management companies which are innovating technical-driven new digitized products , which has caused changes in client behavior. The global economic crisis of 2008 significantly decreased client trust in wealth management firms, globally. This resulted in a shift towards safer products such as fixed income securities and other personalized services. However, the mass affluent offer high growth opportunities for the wealth management industry. AUM (assets under management) grew by 5%, primarily driven by equity market performance, with modest net inflows of 2%.

Moreover, a large chunk of the millionaire population is baby boomer population, which is included in the mass affluent segment. This population has been requiring financial advice for retirement planning in the coming decade, having accumulated significant wealth, which will present further opportunities for wealth management. Most important factors to keep in mind for Europe Wealth Management Market are Britain’s Exit from the European Union and Digitized Platform served by wealth management companies that means Britain’s Exit from the European Union has brought about a change in the market and its positive and negative effects will be seen in coming years and Though it may be late as compared to other consumer banking segments, wealth managers must offer digital alternatives for customer interactions and automate end-to-end processes for which United Kingdom is leading throu out the globe.

Independent broker-dealers (IBD), wirehouses, independent advisors, and MFO’s all compete to capture clients in the High Net Worth (HNW) and Ultra High Net Worth (UHNW) segments. The number of these HNW and UHNW people is on the rise, which has been acting as the driver for Europe Wealth Management Market. Europe is offering about 30% of World's Millionaire population and the rising number of millionaire at Europe is thus enhancing the wealth management market there.

In the first quarter of 2021, house prices, as measured by the House Price Index, rose by 5.8% in the Euro area and by 6.1% in the EU compared with the same quarter of the previous year. In the fourth quarter of 2020 house prices rose by 5.6% and 5.8% respectively. Compared with the fourth quarter of 2020, house prices rose by 1.3% in the euro area and 1.7% in the EU in the first quarter of 2021.

The highest annual increases in house prices in the first quarter of 2021 were recorded in Luxembourg (+17.0%), Denmark (+15.3%), Lithuania (+12.0%), Czechia (+11.9%), and the Netherlands (+11.3%), while prices fell only in Cyprus (-5.8%).

This fall in debt price and increasing house prices in Europe led to increasing the funding for personal and business entity hence, growing the wealth management market in Europe.

The Europe Wealth Management Market is a highly competitive and fragmented wealth management market widely spread across different countries like Italy, Germany, France, United Kingdom, and others of highly competitive and fragmented offering a huge number of competitive players dominating the market, nowadays grabbing the market more powerfully by the mergers and acquisitions and traditional investment opportunities are led by United Kingdom and particularly dragged upwards by London Financial Services Companies has made the Europe Wealth Management Market very competitive and strong all across the world. Globally famous international chains and their brands such as Credit Suisse, and Morgan Stanley are widely famous and leading the market. Other Europe groups such as HSBC Holdings, UBS Group, Legal and General, have been focusing on technology innovations and offering more platforms for wealth management, thus, leading the Europe Wealth Management Market for past long time.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support