Financial Advisory - Cyprus | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$10.76bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.76%, resulting in a market volume of US$11.18bn 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 Cyprus has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in the Financial Advisory market in Cyprus have shifted towards seeking professional advice and guidance for their financial decisions.

With increasing complexity in the investment landscape and a desire for personalized solutions, individuals and businesses are turning to financial advisors to help navigate the intricacies of the market. This preference for expert advice is not unique to Cyprus, but is a global trend as investors seek to maximize their returns and mitigate risks. One of the key trends in the Financial Advisory market in Cyprus is the growing demand for sustainable and socially responsible investment options.

Investors are increasingly concerned about the environmental and social impact of their investments, and are seeking financial advisors who can provide guidance on incorporating sustainability into their portfolios. This trend is driven by a combination of global awareness of environmental and social issues, as well as local initiatives and regulations promoting sustainable investing. Another trend in the market is the rise of digital financial advisory platforms.

Technology has revolutionized the way financial advice is delivered, making it more accessible and convenient for clients. Online platforms and robo-advisors have gained popularity in Cyprus, offering automated investment solutions and personalized advice at a lower cost. This trend is in line with the global shift towards digitalization in the financial industry, as technology continues to reshape the way financial services are delivered.

In addition to customer preferences and emerging trends, there are also local special circumstances that are driving the development of the Financial Advisory market in Cyprus. The country has a well-established financial services sector, with a favorable tax and regulatory environment that attracts international investors. Cyprus also benefits from its strategic location as a gateway between Europe, the Middle East, and Africa, attracting foreign investment and creating opportunities for financial advisors to serve a diverse client base.

Underlying macroeconomic factors also contribute to the growth of the Financial Advisory market in Cyprus. The country has experienced steady economic growth in recent years, with a stable political and legal framework that instills confidence in investors. Low interest rates and a favorable business environment further support the development of the financial services sector, including the Financial Advisory market.

In conclusion, the Financial Advisory market in Cyprus is developing in response to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. As individuals and businesses seek professional advice for their financial decisions, the market is evolving to meet their needs through sustainable investing options and digital platforms. With a favorable tax and regulatory environment, as well as a stable economy, Cyprus is well-positioned to continue attracting investors and driving the growth of the Financial Advisory 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.