Financial Advisory - Cambodia | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$1.07bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.53%, resulting in a market volume of US$1.09bn 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 Cambodia has been experiencing significant growth in recent years.

Customer preferences: Cambodian customers are increasingly seeking financial advice to help them navigate the complex and evolving financial landscape. They are looking for expert guidance on investment opportunities, retirement planning, and wealth management. As the economy continues to develop, individuals are becoming more financially literate and are realizing the importance of professional advice in achieving their financial goals.

Trends in the market: One of the key trends in the Financial Advisory market in Cambodia is the growing demand for investment advice. With the expansion of the stock market and the introduction of new investment products, individuals are looking for guidance on how to make informed investment decisions. Financial advisors are playing a crucial role in helping clients understand the risks and rewards associated with different investment options. Another trend in the market is the increasing focus on retirement planning. As the population ages, individuals are becoming more aware of the need to save for their retirement. Financial advisors are helping clients develop personalized retirement plans, taking into account their income, expenses, and long-term financial goals.

Local special circumstances: Cambodia is a rapidly developing country with a young and dynamic population. The government has implemented various initiatives to promote financial inclusion and improve access to financial services. This has created opportunities for financial advisory firms to expand their services and reach a wider customer base. However, there are also challenges in the market. Cambodia still has a relatively low level of financial literacy, and many individuals are not aware of the benefits of seeking professional financial advice. Additionally, there is a lack of regulations and standards in the Financial Advisory industry, which can make it difficult for customers to identify trustworthy and qualified advisors.

Underlying macroeconomic factors: The growth of the Financial Advisory market in Cambodia can be attributed to several underlying macroeconomic factors. The country has experienced strong economic growth in recent years, driven by sectors such as tourism, garment manufacturing, and construction. This has resulted in an increase in disposable income and wealth accumulation, creating a greater need for financial advisory services. Furthermore, Cambodia has a young and growing middle class, which is becoming more financially sophisticated and demanding more comprehensive financial services. This demographic shift is driving the demand for financial advisory services, as individuals seek guidance on how to manage their wealth and plan for the future. In conclusion, the Financial Advisory market in Cambodia is developing rapidly due to changing customer preferences, favorable macroeconomic factors, and local special circumstances. As the economy continues to grow and individuals become more financially aware, the demand for professional financial advice is expected to increase further. However, it is important for the industry to address challenges such as low financial literacy and the lack of regulations to ensure the sustainable growth 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.