Financial Advisory - Australia | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$1.92tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.05%, resulting in a market volume of US$1.92tn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in Australia has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market have shifted towards more personalized and holistic services.

Customers are increasingly seeking tailored advice that takes into account their individual financial goals, risk tolerance, and life circumstances. This has led to a rise in demand for independent financial advisors who can provide unbiased advice and comprehensive financial planning services. Trends in the Australian Financial Advisory market include the increasing use of technology and digital platforms to deliver financial advice.

Robo-advisors, for example, have gained popularity among tech-savvy customers who prefer low-cost, automated investment solutions. Additionally, there has been a growing focus on sustainable and ethical investing, as customers seek to align their investments with their values. Local special circumstances in Australia, such as the aging population and changing regulatory landscape, have also contributed to the development of the Financial Advisory market.

As the population ages, there is a greater need for retirement planning and wealth management services. The government's introduction of the Future of Financial Advice (FOFA) reforms has also had an impact, requiring financial advisors to act in the best interests of their clients and provide transparent fee structures. Underlying macroeconomic factors have played a role in shaping the Financial Advisory market in Australia.

The country's strong economic performance and high levels of household wealth have created a favorable environment for financial advisory services. Additionally, low interest rates have driven investors to seek alternative investment options, increasing the demand for financial advice. Overall, the Financial Advisory market in Australia is developing in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

As customers increasingly seek personalized and holistic financial advice, financial advisors are adapting their services to meet these demands. The use of technology and digital platforms, the focus on sustainable investing, and the aging population are all contributing to the growth and evolution of the market.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.