Financial Advisory - Eastern Asia

Assets under Management in the Financial Advisory market are projected to reach US$13.34tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.29%, resulting in a market volume of US$13.53tn 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 Eastern Asia is experiencing significant growth and development, driven by changing customer preferences and local special circumstances. Customer preferences in the Financial Advisory market have shifted towards more personalized and tailored services.

Clients are increasingly seeking advice that is specific to their individual financial goals and risk tolerance. This trend is driven by the growing wealth and sophistication of clients in Eastern Asia, who are looking for more sophisticated investment strategies and products. Additionally, clients are placing a greater emphasis on transparency and ethical practices, demanding advisors who can provide unbiased advice and act in their best interests.

Trends in the Financial Advisory market in Eastern Asia are also influenced by global and regional market trends. One such trend is the increasing adoption of digital technology in the financial industry. Digital platforms and robo-advisors are gaining popularity in Eastern Asia, as they offer convenience, lower costs, and access to a wide range of investment options.

This trend is particularly pronounced in countries like China and South Korea, where the tech-savvy population is driving the demand for digital financial services. Local special circumstances also play a role in shaping the Financial Advisory market in Eastern Asia. For example, in China, the government's push for financial market liberalization and the opening up of the capital markets have created new opportunities for financial advisors.

The growing middle class in China is also driving demand for financial advisory services, as individuals seek guidance on wealth management and retirement planning. Underlying macroeconomic factors are also contributing to the development of the Financial Advisory market in Eastern Asia. Economic growth and rising incomes in countries like China, Japan, and South Korea have led to an increase in the number of high-net-worth individuals and the accumulation of wealth.

This has created a larger pool of potential clients for financial advisors and increased demand for their services. In conclusion, the Financial Advisory market in Eastern Asia is experiencing growth and development driven by changing customer preferences, global and regional market trends, local special circumstances, and underlying macroeconomic factors. The shift towards personalized and tailored services, the adoption of digital technology, government initiatives, and economic growth are all contributing to the expansion of the market in this region.

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.