Private Banking Market Trends, Analysis, Share, Size by 2031
The private banking market size is expected to grow from US$ 481.30 billion in 2023 to US$ 1031.71 billion by 2031; it is anticipated to expand at a CAGR of 10.0% from 2023 to 2031. The market includes growth prospects owing to the current private banking market trends and their foreseeable impact during the forecast period. Private banking is the leading sector in the financial services landscape in terms of profitability.
Globalization has evolved in recent decades as a result of the expansion of commercial and financial networks that cross national borders, making businesses and workers from other economies increasingly interconnected. Greater globalization creates more chances for international investments, resulting in more investment-linked programs. Moreover, industrialization also facilitates increased investments, cross-broader collaborations, partnerships and joint ventures, facilitating the private banking market growth.
Private Banking Market Analysis
Private banking refers to the tailored financial services and products that retail banks and other financial institutions provide to their high-net-worth individual (HNWI) clientele. Private banking is provided by consumer banks and brokerages of all sizes, although it is targeted at a select group of customers. Typically, this service is provided by specialized departments known as "private banking" or "wealth management" divisions. Private banking offers a variety of wealth management services, all conveniently located under one roof. Trust and estate planning, insurance, tax services, and investment and portfolio management are some of the private banking offered. In the increasingly automated and digital banking environment, private banking provides customers with a range of benefits, privileges, and customized services, which is becoming a highly valued asset. Nonetheless, there are benefits for both the banks and their private customers.
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Private Banking Market: Strategic Insights
Market Size Value in US$ 481.30 billion in 2023 Market Size Value by US$ 1031.71 billion by 2031 Growth rate CAGR of 10.0% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Private Banking Market: Strategic Insights
| Market Size Value in | US$ 481.30 billion in 2023 |
| Market Size Value by | US$ 1031.71 billion by 2031 |
| Growth rate | CAGR of 10.0% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Private Banking Industry Overview
- Common financial services like checking and savings accounts are included in private banking, but they are provided in a more individualized way.
- Each customer is given a "relationship manager" or "private banker" who is responsible for any issues. Everything is managed by the private banker, from complex jobs like setting up a jumbo mortgage to routine duties like bill payment.
- Private banking, on the other hand, handles a client's complete financial position in addition to CDs and safe deposit boxes.
- Advice on investment strategy and financial planning, portfolio management, specialized financing choices, retirement planning, and transferring money to future generations are examples of specialized services.
Private Banking Market Driver
Huge Demand For Wealth Management Solutions to Drive the Private Banking Market
- The soaring demand for wealth management solutions is expected to redefine the dynamics of the private banking market, catalyzing a profound pricing shift.
- As high-net-worth individuals increasingly seek sophisticated strategies to preserve and grow their assets, private banks are compelled to enhance their offerings and competitive positioning.
- As individuals accumulate more wealth, they seek sophisticated investment strategies, tax optimization, estate planning, and personalized advice, all of which private banking offers.
- Therefore, as demand for wealth management solutions grows, private banks will see increased business opportunities and expand their services to cater to the evolving needs of affluent clients.
- Moreover, the increasing complexity of financial markets and investment options further increases the need for expert guidance and tailored solutions, which private banks can fulfill.
- As global wealth continues to rise, particularly in emerging markets, the pool of potential clients for private banking services expands, further driving the private banking market growth.
Private Banking Market Report Segmentation Analysis
- Based on type, the private banking market is segmented into asset management service, insurance service, trust service, tax consulting, and real estate consulting.
- The asset management service segment is expected to hold a substantial private banking market share in 2023.
- Asset management service in private banking refers to the professional management of a client's investments and assets by a team of financial experts within a private banking institution. This service typically involves personalized investment strategies tailored to the client's financial goals, risk tolerance, and time horizon.
- Private bankers provide advice and guidance on asset allocation, portfolio diversification, and investment selection, aiming to maximize returns while managing risks effectively.
- They may also offer additional services such as estate planning, tax optimization, and wealth preservation strategies.
Private Banking Market Share Analysis By Geography
The scope of the private banking market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant private banking market share. The region's significant economic development, growing population, and increasing focus on risk management and private banking have contributed to the growth of the market.
Private Banking Market Report Scope
The "Private Banking Market Analysis" was carried out based on type and application. On the basis of type, the market is segmented into asset management service, insurance service, trust service, tax consulting, and real estate consulting. Based on application, the private banking market is segmented into personal and enterprise. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Private Banking Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the private banking market. A few recent key market developments are listed below:
- In July 2023, HSBC announced the launch of its global private banking (GPB) business in India to serve high-net-worth (HNW) and ultra-high-net-worth (UHNW) professionals, entrepreneurs, and their families. The new business is aimed at clients with investable assets of more than USD 2 million. The launch also demonstrates the Bank’s commitment to lead wealth management in Asia by offering world-class wealth solutions, global private banking expertise, an extensive international network, and access to commercial banking and global banking & markets capabilities.
[Source: HSBC, Company Website]
- In October 2022, HSBC Global Private Banking launched its business in the large Chinese cities of Chengdu and Hangzhou in a push to capture a bigger share of China's wealth market. The bank also planned to explore opportunities in China's Southwest region.
[Source: HSBC, Company Website]
Private Banking Market Report Coverage & Deliverables
The private banking market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Private Banking Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Huge demand for wealth management solutions and increasing demand for private equity are the major factors that propel the global private banking market.
The global private banking market was estimated to be US$ 481.30 billion in 2023 and is expected to grow at a CAGR of 10.0 % during the forecast period 2023 - 2031.
Digital transformation promoting online private banking is anticipated to play a significant role in the global private banking market in the coming years.
The key players holding majority shares in the global private banking market are CREDIT SUISSE GROUP.; JPMorgan Chase & Co; Morgan Stanley; Goldman Sachs; and Bank of America Corporation
The global private banking market is expected to reach US$ 1,031.71 billion by 2031.
- CREDIT SUISSE GROUP.
- JPMorgan Chase & Co
- Morgan Stanley
- Royal Bank of Canada
- UBS
- JuliusBaer Group
- Charles Schwab & Co
- Citigroup Inc
- Goldman Sachs
- Bank of America Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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