Market Insights Financial Wealth Management

Financial Advisory - Cambodia

Cambodia

In Cambodia, the Financial Advisory market is expected to witness significant growth in the coming years.
According to projections, the Assets under Management (AUM) in this market are estimated to reach US$1.09bn by the year 2024.
It is further anticipated that the AUM will continue to expand at an annual growth rate of 0.68% (CAGR 2024-2028), ultimately reaching a market volume of US$1.12bn by 2028.
This demonstrates the potential for substantial development and opportunities within the Financial Advisory market sector in Cambodia.
Cambodia's financial advisory market is experiencing significant growth due to the increasing demand for professional wealth management services in the country.

Key regions: United States, Singapore, Europe, Switzerland, Canada

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Analyst Opinion

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.

Methodology

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).