United States of America (USA) Wealth Management – Market Sizing and Opportunities to 2025

Based on our proprietary datasets, GlobalData’s “United States (US) Wealth Management – Market Sizing and Opportunities to 2025” report analyzes the US wealth and retail savings and investments markets, with a focus on the HNW segment. This includes overall affluent market size (both by number of individuals and the value of their liquid assets) as well as a breakdown of liquid vs. illiquid HNW holdings. The report also provides analysis of the factors driving liquid asset growth, including a breakdown and forecast of total retail savings and investments split by asset classes including equities, mutual funds, deposits and bonds.

The US is home to the world’s largest population of wealthy individuals. Affluent individuals (including HNW and mass affluent individuals) accounted for almost 70% of the total adult population in 2020 and held almost 99% of the country's total onshore liquid assets in 2020. The affluent segment holds the majority of their wealth in risky assets such as equities and mutual funds. Therefore, as the outbreak of the COVID-19 pandemic caused big downward shifts in the stock market performance of the country, thereby adversely affecting the returns of the affluent investors on this asset class, such losses were recovered in the second half of 2020 which saw an easing of lockdown restrictions and restarting of the American economy. Nevertheless, a strong predicted retail investments growth is expected over the upcoming period, owing to an effective vaccine program which will raise investor confidence in the economic performance of the country. Further, the country’s savings and investments market is observing a growing preference for robo-advisory by the HNW investors. This demand has also been accelerated by the outbreak of the pandemic that has been a catalyst in increasing the use of digital products and services.

Scope

– HNW individuals constituted only 2.67% of the total adult population of the US in 2020.

– The US is one of the first countries to introduce the concept of algorithm-based/robo advisory and is currently the largest market for this type of advisory, which is efficient and inexpensive compared to other types of advisory.

– Equities remain the most popular investment avenue for Americans indicating their preference for investment asset classes which yield high returns.

– Almost a fifth of emerging affluent investors find pension companies as their preferred channel for investments.

Reasons to Buy

– Make strategic decisions using top-level historic and forecast data on the US’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 the US.

– 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.