Financial Advisory - Czechia | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$54.26bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.41%, resulting in a market volume of US$55.36bn 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 Czechia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Financial Advisory market have shifted towards personalized and holistic financial advice.

Clients are increasingly seeking tailored solutions that address their specific needs and goals. This has led to a rise in demand for comprehensive financial planning services, including investment management, retirement planning, and estate planning. Additionally, clients are placing greater importance on transparency and trust when selecting a financial advisor, leading to a growing demand for independent advisors who operate on a fee-based model rather than earning commissions from product sales.

Trends in the Czech Financial Advisory market reflect global developments in the industry. The rise of digital technology has enabled the emergence of robo-advisors, which use algorithms to provide automated investment advice. This trend has gained traction in Czechia, particularly among younger investors who are comfortable using technology and prefer low-cost investment solutions.

However, traditional financial advisors still play a crucial role in the market, as they offer personalized advice and expertise that cannot be replicated by robo-advisors. Local special circumstances in Czechia have also contributed to the growth of the Financial Advisory market. The country has a strong banking sector and a high level of financial literacy among its population.

This creates a favorable environment for financial advisory services, as individuals are more likely to seek professional advice and engage in long-term financial planning. Additionally, the Czech Republic has a well-developed pension system, which has increased the need for retirement planning and investment advice. Underlying macroeconomic factors have further supported the development of the Financial Advisory market in Czechia.

The country has experienced stable economic growth in recent years, with low unemployment rates and rising disposable incomes. This has increased the capacity of individuals to invest and save for the future, driving demand for financial advisory services. Furthermore, the low interest rate environment has made traditional savings accounts less attractive, prompting individuals to seek alternative investment opportunities and guidance.

In conclusion, the Financial Advisory market in Czechia is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards personalized and holistic financial advice, the emergence of robo-advisors, the strong banking sector and financial literacy, and the stable economic growth in the country have all contributed to the development of the market. As the market continues to evolve, financial advisors will need to adapt to meet the changing needs and expectations of their clients.

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.