Financial Advisory - Chile | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$15.41bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.62%, resulting in a market volume of US$16.70bn 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 Chile has been experiencing significant growth in recent years. Customer preferences have shifted towards seeking professional advice and guidance when it comes to managing their finances. This trend is driven by several factors, including the increasing complexity of financial products and the desire for personalized and tailored financial solutions.

Customer preferences: Chilean consumers are becoming more aware of the importance of financial planning and are seeking professional advice to help them navigate the complex world of investments, insurance, and retirement planning. They are looking for advisors who can provide personalized guidance based on their individual financial goals and risk tolerance. This is particularly true for the younger generation, who are more inclined to seek professional help in managing their finances.

Trends in the market: One of the key trends in the Financial Advisory market in Chile is the growing demand for independent financial advisors. Clients are increasingly looking for advisors who are not tied to any specific financial institution and can provide unbiased advice. This trend is driven by a desire for transparency and a need for objective recommendations. Another trend in the market is the increasing popularity of robo-advisors. These digital platforms use algorithms to provide automated investment advice based on the client's financial goals and risk profile. Robo-advisors are gaining traction in Chile due to their convenience and lower costs compared to traditional financial advisors. However, there is still a preference for human advisors who can provide a personal touch and build a long-term relationship with clients.

Local special circumstances: Chile has a well-developed financial sector and a strong culture of saving and investing. The country has a high level of financial literacy, which contributes to the demand for professional financial advice. Additionally, the pension system in Chile is based on individual savings accounts, which requires individuals to make informed decisions about their retirement savings. This creates a need for financial advisors who can help clients navigate the complexities of the pension system and make the right investment choices.

Underlying macroeconomic factors: The growth of the Financial Advisory market in Chile is supported by favorable macroeconomic conditions. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income and a growing middle class. As individuals accumulate wealth, they are more likely to seek professional advice to help them manage their finances and plan for the future. Furthermore, the low interest rate environment in Chile has made it more challenging for individuals to generate sufficient returns on their savings. This has led to a greater emphasis on investment strategies and the need for professional advice to optimize returns. In conclusion, the Financial Advisory market in Chile is expanding due to changing customer preferences, including a desire for personalized advice and unbiased recommendations. The market is also influenced by local special circumstances, such as a strong culture of saving and investing and a well-developed financial sector. Favorable macroeconomic conditions, including steady economic growth and a low interest rate environment, further support the 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.