Sizing the Retail Investor Market in the Americas

by Ashley Globerman,  Isabella Fonseca, July 2, 2014
Industry Trends
Latin America, North America

Abstract

In the first of three reports that analyze the retail investor market, Celent addresses four countries across North and Latin America with respect to their overall economic health, regulatory drivers, retail investor market, and wealth management market maturity and sophistication.

In the report Sizing the Retail Investor Market in the Americas, Celent profiles four countries and identifies which countries wealth management solutions providers should focus on in the near term. The countries included in this report are Brazil, Chile, Mexico, and the United States.

This report aims to provide firms with an understanding of the retail investor landscape across the Americas.  Additionally, firms that provide services to a global client base may draw comparisons between the retail trading markets domestically and internationally. Finally, this report will encourage firms to assess their strategic plans with a further understanding of the products and services offered to retail investors in the Americas.

“Overall, Brazil, Chile, Mexico, and the US present a good opportunity for wealth managers and service providers who target the retail investor market. However, firms should consider each country individually and consider local partner opportunities to maximize their entry opportunities,” says Isabella Fonseca, Research Director of Celent’s Wealth Management group and coauthor of the report.

Retail investors across the Americas are a significantly diverse group due to several factors such as their country’s overall economic standing, sophistication of domestic financial markets, access to investment products and education, investment knowledge expertise and experience, and cultural tendencies towards financial markets. Additionally, factors such as investor confidence and regulatory reform in the aftermath of the financial crisis contribute to the size and characteristics of each of the retail investor markets.

“The degree to which individuals’ assets were affected by the financial crisis varies by country; however, as a whole, investors continue to seek recovery of their financial losses from the crisis and will continue to do so as the global economy continues to improve,” says Ashley Globerman, Analyst with Celent’s Wealth Management Group and coauthor of the report. “Overall, there has been balanced growth across customer segments.”

The other reports in this series are Sizing the European Retail Investor Market and Sizing the Asian Retail Investor Market.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

Country Market Overviews

7

 

Brazil

7

 

Chile

8

 

Mexico

8

 

United States

9

Regulatory Drivers

10

 

North America

10

 

Latin America

10

Retail Investor Market Overviews

12

 

Brazil

12

 

Chile

12

 

Mexico

14

 

United States

16

Wealth Management Market Maturity and Sophistication

17

 

Brazil

20

 

Chile

20

 

Mexico

20

 

United States

20

Celent’s Recommendations

22

 

Brazil

22

 

Chile

23

 

Mexico

24

 

United States

25

Conclusion

26

 

Brazil

26

 

Chile

26

 

Mexico

27

 

United States

27

Leveraging Celent’s Expertise

29

 

Support for Financial Institutions

29

 

Support for Vendors

29

Related Celent Research

30

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