Financial Advisory - Bulgaria | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$5.67bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.72%, resulting in a market volume of US$5.88bn 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 Bulgaria has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market in Bulgaria have shifted towards seeking professional advice and guidance when it comes to managing their finances.

This is due to increased awareness about the importance of financial planning and the desire for personalized investment strategies. Customers are looking for advisors who can provide comprehensive services, including investment planning, retirement planning, and tax optimization. They value transparency, trustworthiness, and expertise in their advisors.

Trends in the market indicate a growing demand for digital financial advisory services in Bulgaria. Customers are increasingly using online platforms and mobile applications to access financial advice and manage their investments. This trend is driven by the convenience and accessibility offered by digital platforms, as well as the availability of robo-advisory services.

Robo-advisors use algorithms and automation to provide personalized investment recommendations, making financial advice more affordable and accessible to a larger customer base. Another trend in the Financial Advisory market in Bulgaria is the increasing popularity of sustainable and socially responsible investing. Customers are becoming more conscious about the environmental and social impact of their investments and are seeking advisors who can help them align their financial goals with their values.

This trend is driven by global sustainability initiatives and the growing awareness of the importance of responsible investing. Local special circumstances in Bulgaria, such as the relatively low level of financial literacy and the presence of a large unbanked population, have also contributed to the development of the Financial Advisory market. Many Bulgarians lack basic financial knowledge and rely on advisors to make informed decisions about their money.

Additionally, the unbanked population presents an opportunity for financial advisors to expand their services and reach a new customer base. Underlying macroeconomic factors, such as the stable economic growth and increasing disposable income in Bulgaria, have created a favorable environment for the Financial Advisory market. As the economy continues to grow, more individuals and businesses are seeking professional advice to manage their wealth and investments.

The increasing disposable income allows customers to allocate a larger portion of their earnings towards financial planning and investment. In conclusion, the Financial Advisory market in Bulgaria is developing due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customers are seeking professional advice, digital financial advisory services are gaining popularity, and sustainable investing is on the rise.

The low level of financial literacy and the presence of a large unbanked population provide opportunities for advisors to expand their services. The stable economic growth and increasing disposable income in Bulgaria create a favorable environment for the Financial Advisory market to thrive.

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.