Private Banking Services in the US

Private banks have grown recently as wealth managers have capitalized on the growing number of millionaires in emerging markets. The relative strength of the US economy has propelled private banks, as wealthy individuals worldwide have sought to park their wealth in secure assets like urban real est...

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Bibliographic Details
Format:	Market Research
Language:	eng
Subjects:	Actively managing client portfolios Alternative asset management Alternative assets Assisting high-net-worth clients with financial needs Cash and equivalent assets Equities Equity asset management Fixed income assets Fixed-income asset management Providing specialty wealth-advisory services
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Summary:	Private banks have grown recently as wealth managers have capitalized on the growing number of millionaires in emerging markets. The relative strength of the US economy has propelled private banks, as wealthy individuals worldwide have sought to park their wealth in secure assets like urban real estate. Even amid the outbreak of COVID-19 in 2020, market accumulation spurred growth. Overall, the need for private banking services has increased as the global number of high-net-worth and ultra-high-net-worth individuals has grown. Industry-wide revenue has been growing at a CAGR of 9.9% over the past five years and is expected to total $118.0 billion in 2023, when revenue will jump by an estimated 2.7%. A key theme driving growth is the rise of globalization. During the period, wealthy individuals expanded in regions outside the US, most notably the Asia-Pacific region. In turn, wealth managers have increasingly engaged in cross-border wealth management practices to push up assets under management. The Russia-Ukraine conflict, compounded by rising interest rates, induced volatility in capital markets and increased investor uncertainty, driving clients to private banks. Private banks will continue to enjoy growth from interest rate hikes and capital market growth. Profit will creep upward as higher interest rates give private banks greater margins from loans and deposits. High competition among private banks will spur increased investment in value-added services to attract clients. Overall, industry revenue is forecast to grow at a CAGR of 6.8% over the five years through 2028 to total $164.1 billion.