Financial Advisory - EAEU | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$526.40bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 3.84%, resulting in a market volume of US$635.50bn 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 EAEU is developing at a steady pace, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market in EAEU are shifting towards personalized and holistic financial advice.

Clients are seeking advisors who can provide tailored solutions to their unique financial goals and circumstances. They value advisors who can offer a comprehensive range of services, including investment management, retirement planning, tax optimization, and estate planning. Additionally, clients are increasingly looking for advisors who can leverage technology to provide convenient and efficient services, such as online portfolio management platforms and mobile apps.

Trends in the market indicate a growing demand for sustainable and socially responsible investing. Clients in EAEU are becoming more conscious of the environmental and social impact of their investments and are seeking advisors who can help them align their financial goals with their values. This trend is driven by global awareness of climate change and social issues, as well as regulatory initiatives promoting sustainable investing.

As a result, financial advisors in EAEU are expanding their expertise in environmental, social, and governance (ESG) investing and incorporating sustainable investment strategies into their offerings. Local special circumstances in EAEU also influence the development of the Financial Advisory market. The region has a diverse landscape, with different countries having varying levels of economic development, regulatory frameworks, and investor preferences.

This creates opportunities for financial advisors to tailor their services to the specific needs of each country. For example, in countries with emerging economies, there is a growing demand for basic financial education and budgeting assistance, while in more developed countries, clients may require more sophisticated wealth management solutions. Underlying macroeconomic factors play a significant role in shaping the Financial Advisory market in EAEU.

Economic growth, stability, and market performance impact investor confidence and willingness to seek professional financial advice. As the region continues to recover from the global financial crisis, improving economic conditions and rising incomes are driving the demand for financial advisory services. Additionally, regulatory reforms aimed at enhancing investor protection and promoting transparency in the financial markets are creating a favorable environment for the growth of the Financial Advisory market.

In conclusion, the Financial Advisory market in EAEU is developing in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Financial advisors in the region are adapting to meet the demands of clients who seek personalized and holistic financial advice, sustainable investment options, and convenient digital solutions. The diverse landscape of the region and varying levels of economic development create opportunities for advisors to tailor their services to the specific needs of each country.

Overall, the growth of the Financial Advisory market in EAEU is driven by a combination of global and regional factors that are shaping the future of the industry.

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.