Private Banking Market Analysis

Based on application, the personal segment held over 67% of the market share in 2023. The initiation of private banking services for HNWIs in untapped regions is driving segment growth. By extending services to these previously underserved areas, financial institutions are capturing new clientele with significant wealth. For instance, in July 2023, HSBC unveiled its global private banking services, targeting Ultra-High-Net-Worth (UHNW) & High-Net-Worth (HNW) professionals, entrepreneurs, and their families in India. This initiative caters to clients possessing investable assets exceeding USD 2 million.

Based on type, the asset management service segment recorded around 40% of the private banking market share in 2023. The growing need for diversification is a key factor propelling asset management services in private banking. High-net-worth clients seek investment portfolios that span a variety of asset classes to mitigate risk.

Asset management services cater to this demand by providing access to a broad range of investment opportunities including equities, fixed income, real estate, and alternative investments. This diversification strategy aligns with clients' risk tolerance and financial objectives, increasing the popularity and relevance of asset management services in the market.

North America private banking market accounted for 32% of the revenue share in 2023. The significant concentration of HNWIs in North America is a primary factor fueling the market. The region hosts a substantial number of affluent clients with significant financial assets, creating a strong demand for personalized wealth management services. Private banks are also drawn to the opportunity to cater to this affluent clientele, offering tailored solutions for investment, estate planning, and financial advisory services. The abundance of HNWIs establishes North America as a key market for private banking growth and expansion.