Financial Advisory - Canada | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$9.62tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.43%, resulting in a market volume of US$10.85tn 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 Canada has been experiencing significant growth in recent years.

Customer preferences: Customers in Canada have shown a strong preference for personalized financial advice and guidance. They value the expertise and knowledge that financial advisors bring to the table, especially when it comes to navigating complex investment options and retirement planning. Canadians also prioritize transparency and trust in their financial advisors, seeking professionals who can provide unbiased recommendations tailored to their individual needs and goals.

Trends in the market: One key trend in the Canadian Financial Advisory market is the increasing demand for sustainable and socially responsible investments. Canadians are becoming more conscious of the environmental and social impact of their investments, and they are seeking advisors who can help them align their financial goals with their values. This trend is driven by a growing awareness of climate change and social issues, as well as the desire to make a positive impact through investment choices. Another trend in the market is the rise of digital financial advisory services. Technology has made it easier for Canadians to access financial advice and investment services online, and many customers are embracing this convenience. Digital platforms offer lower costs and greater accessibility, attracting a new generation of investors who prefer to manage their finances digitally. However, traditional financial advisory firms are also adapting to this trend by integrating digital tools into their services, providing a hybrid approach that combines the benefits of technology with the expertise of human advisors.

Local special circumstances: Canada's aging population is a unique factor that is shaping the Financial Advisory market. As more Canadians approach retirement age, there is a growing need for retirement planning and wealth management services. Financial advisors are playing a crucial role in helping individuals navigate the complexities of retirement planning, including managing pensions, maximizing government benefits, and creating sustainable income streams for the future.

Underlying macroeconomic factors: The stability and strength of Canada's economy have contributed to the growth of the Financial Advisory market. Canada has a well-regulated financial system and a robust banking sector, which instills confidence in investors and encourages them to seek professional advice. Additionally, low interest rates and a stable housing market have created favorable conditions for investment and wealth accumulation, driving the demand for financial advisory services. In conclusion, the Financial Advisory market in Canada is experiencing growth due to customer preferences for personalized advice, the increasing demand for sustainable investments, the rise of digital services, the unique circumstances of Canada's aging population, and the underlying macroeconomic factors that support a strong financial sector. As the market continues to evolve, financial advisors will need to adapt to changing customer needs and leverage technology to provide innovative and tailored solutions.

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.