Financial Advisory - Australia & Oceania

Assets under Management in the Financial Advisory market are projected to reach US$2.14tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.09%, resulting in a market volume of US$2.15tn 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 & Oceania is experiencing significant growth and development. Customer preferences are shifting towards seeking professional advice and guidance for their financial decisions. This trend is driven by several factors, including the increasing complexity of financial products and services, the desire for personalized financial planning, and the need for expert advice in navigating volatile market conditions.

Customer preferences: Customers in Australia & Oceania are increasingly seeking the services of financial advisors to help them make informed decisions about their finances. This is driven by a growing awareness of the benefits of professional financial advice, including access to a wide range of investment options, risk management strategies, and retirement planning expertise. Additionally, customers are looking for personalized financial planning tailored to their individual goals and circumstances.

Trends in the market: One of the key trends in the Financial Advisory market in Australia & Oceania is the rise of digital platforms and robo-advisors. These platforms offer low-cost investment options and automated portfolio management, appealing to tech-savvy customers who prefer a more hands-off approach to managing their finances. This trend is also driven by the increasing demand for convenience and accessibility, as customers can access financial advice and services anytime, anywhere. Another trend in the market is the growing focus on sustainable and responsible investing. Customers are increasingly interested in aligning their investments with their values, such as investing in companies that prioritize environmental, social, and governance (ESG) factors. This trend is driven by a growing awareness of the impact of investments on the environment and society, as well as the potential for long-term financial returns.

Local special circumstances: Australia & Oceania has a unique set of circumstances that influence the Financial Advisory market. The region is known for its natural resources, such as minerals and agricultural products, which attract foreign investors and create opportunities for wealth management and investment advisory services. Additionally, the region has a diverse population with varying financial needs and goals, requiring financial advisors to have a deep understanding of local market dynamics and cultural nuances.

Underlying macroeconomic factors: The development of the Financial Advisory market in Australia & Oceania is also influenced by underlying macroeconomic factors. Economic growth, inflation rates, and interest rates play a significant role in shaping customer preferences and investment strategies. For example, during periods of low interest rates, customers may seek higher-yielding investment options and rely on financial advisors to identify suitable opportunities. Furthermore, regulatory changes and government policies can impact the Financial Advisory market. Regulatory reforms aimed at improving transparency and consumer protection, such as the introduction of fiduciary standards, can shape the way financial advisors operate and provide services to customers. Government initiatives to promote financial literacy and education also contribute to the growth of the market by increasing awareness and understanding of financial products and services. In conclusion, the Financial Advisory market in Australia & Oceania is experiencing growth and development driven by shifting customer preferences, including the desire for professional advice, personalized financial planning, and access to digital platforms. The market is also influenced by local special circumstances, such as the region's natural resources and diverse population. Underlying macroeconomic factors, such as economic growth and regulatory changes, further shape the market dynamics.

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.