Mumbai: The number of people in the highest wealth bracketsthose with more than a million dollars in financial wealthis expected to increase by more than 55% from 2024 to 2029, far outpacing the global average of 21%, according to the Boston Consulting Group (BCG) on Wednesday.
From 2014 to 2024, organic growth varied greatly by area, with Asia Pacific wealth managers achieving rates of 50% more than double that of their EMEA and North American colleagues, driven primarily by developing markets such as India, according to Mayank Jha, Managing Director and Partner at BCG.
India's wealth management industry is experiencing a dramatic shift, with the number of dollar millionaires predicted to increase by more than 55% between 2024 and 2029, far above the global average of 21%, he said.
A new generation of first-time wealth producers, particularly millennial entrepreneurs and corporate executives, is revolutionizing the sector. As India becomes a wealth management powerhouse, effective customer segmentation and end-to-end integration of AI and GenAI—from prospecting to advice to service—will be crucial to staying ahead, Jha said.
Global financial wealth reached a new high of $305 trillion in 2024, fueled by an 8. 1% increase in financial assets amid strong equity market performance.
According to BCG, India's financial wealth increased by 10. 8% between 2023 and 2024, exceeding the Asia-Pacific (APAC) average of 7. 3%, demonstrating the country's expanding economic power.
With Asia Pacific expected to grow at 9% yearly until 2029, well ahead of North America's 4% and Western Europe's 5%, India is set to be a significant driver of this global shift in financial wealth.
This quickening growth in India represents a substantial change in the financial services sector and presents unprecedented chances for advisors and organizations prepared to meet this increasing demand.
Organic growth of Assets Under Management (AUM) from 201424 varied greatly by area, with APAC wealth managers achieving rates of 50 per cent, more than double that of EMEA and North America, driven mainly by emerging markets such as India.
A generational wave of first-time wealth creators, particularly millennials, has allowed both new and experienced advisors to gain new clients and assets.
Michael Kahlich, managing director and partner at BCG, says that what distinguishes winners today is not exposure to market performance or the ability to recruit senior bankers, but rather their ability to develop from within.
Firms that intentionally invest in advisor enablement, brand identity, and next-generation client strategies are outperforming their peers—not just in income, but also in valuation multiples, Kahlich added.
