Germany Wealth Management – Market Sizing and Opportunities to 2026

Pages: 38 Published: June 27, 2022 Report Code: GDFS0609CI

Germany wealth management market research report analyzes Germany’s wealth and retail savings and investments markets. It details the overall affluent market size (both by the number of individuals and the value of their liquid assets) and provides analysis of the factors driving liquid asset growth, across deposits, mutual funds, equities, and bonds.

What are the market dynamics in the Germany wealth management market?

Germans’ long tradition of saving money is deeply ingrained in the national psyche. Hence, it is not surprising that across investor segments including mass market, mass affluent, and emerging affluent, a significant chunk of wealth is allocated to savings accounts. Despite recent German equity market highs and the possibility to earn greater returns on investments, German mass market investors on average continue to see equities as high-risk investments and avoid them in favor of savings accounts with guaranteed returns. Mass market investors in Germany also allocate the highest share of their average portfolio to current accounts, which further highlights the risk-aversion and capital-preservation attitude of these investors.

HNW individuals in Germany invest a significant proportion of their wealth offshore, which represents an opportunity for wealth managers should they be able to address the motivations to offshore. In the next 12 months, a huge share of wealth managers expect the proportion of offshored wealth to increase. The unstable political environment in Germany and rising local taxes were key factors driving offshore investment. In 2021, the national elections were closely contested, with none of the parties receiving a clear majority. This resulted in a three-party coalition government. Furthermore, the possible reintroduction of a wealth tax and a tightened inheritance tax by the new government prompted many HNWs to shift their assets to other popular offshore booking centers in Europe such as Switzerland.

Which are the key asset bands in the Germany wealth management market?

The key asset bands in the Germany wealth management market are mass market, emerging affluent, mass affluent, and HNW.  Affluent individuals (including HNWs and mass affluents) accounted for nearly a quarter of Germany’s total adult population in 2021. This segment has witnessed consistent and robust growth in recent years.

Which are the key HNW asset allocation classes in the Germany wealth management market?

The key HNW asset allocation classes in the Germany wealth management market are equities, cash and near cash, property, commodities, and alternatives. In line with investment preferences in the wider European region, German HNW investors demonstrate robust demand for equity-based investments. German HNW investors also allocate a significant proportion of their wealth to fixed-income products, a longstanding trend characterizing the German HNW market. Direct corporate bonds and government bonds are the preferred investments within this asset class. The ECB is expected to increase interest rates in 2022, resulting in higher yields on bonds, but with the growing inflationary pressure across the European region, real returns are likely to remain negative.

Germany wealth management market, by asset allocation classes

Germany wealth management market, by asset allocation classes

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Market overview

Key asset bands Mass Market, Emerging Affluent, Mass Affluent, and HNW
Key asset allocation classes Equities, Cash and Near Cash, Property, Commodities, And Alternatives

Scope

  • Advisory mandates dominate the German HNW wealth market.
  • Deposits remain the most popular investment avenue for Germans, indicating their preference for safe-haven investment asset classes.
  • Bonds continued to form a small proportion of retail investment portfolios in 2021.

Reasons to Buy

  • Make strategic decisions using top-level historic and forecast data on Germany’s wealth industry.
  • Identify the most promising client segment by analyzing the penetration of affluent individuals.
  • Receive detailed insights into retail liquid asset holdings in Germany.
  • Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the wealth space.
  • See an overview of key digital disruptors in the country’s wealth market.

Key Players

Deutsches Aktieninstitut

Verband der Chemischen Industrie

Volkswagen

BMW

BVI

Bundesbank

European Central Bank

LIQID

Scalable Capital

Table of Contents

Table of Contents

The German Wealth Market

Investor Insight

Resident Savings and Investments

Digital Disruptors

Recent Deals

Appendix

Frequently Asked Questions

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