The €11 trillion challenge for European wealth managers

Ian Orton, 28/10/2020

A frustrating aspect of all those wealth reports that are now produced on an annual basis by a wide range of institutions, is that they invariably fail to provide any estimates of the proportion of wealth that is actually managed in any jurisdiction.

If nothing else, this would provide an estimate of the potential for both active and aspirant wealth management firms, as well as providing a basis from which to estimate market share by institution.

This is especially the case with those wealth reports that focus on the volume of financial, rather than real, assets owned by individuals and families.

One way of negotiating this particular problem is to focus on the volume of cash deposits held by individuals and institutions.

As cash deposits tend to be held rather than managed, this measure can provide a cheap and cheerful estimate of market potential.

Moreover this data is relatively accessible at both an individual and multi-jurisdictional level.

Eurostat, for example, provides such data for the entire European Union (EU).

Eurstat estimates that more than €11 trillion was held in cash deposits within the 28 member states of the EU in 2018.

Germany accounted for €2.5 trillion followed by the UK (€1.8 trillion), France (€1.5 trillion...

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