Financial Advisory - Eastern Europe

Assets under Management in the Financial Advisory market are projected to reach US$580.90bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 3.57%, resulting in a market volume of US$692.30bn 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 Europe is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trajectory.

Customer preferences in Eastern Europe are shifting towards seeking professional financial advice. With the increasing complexity of financial products and the growing importance of financial planning, individuals and businesses are recognizing the value of expert guidance. This preference for financial advisory services is driven by a desire for personalized and tailored advice that can help individuals and businesses achieve their financial goals.

Trends in the market are also contributing to the growth of the Financial Advisory industry in Eastern Europe. One major trend is the increasing adoption of technology in the delivery of financial advisory services. Digital platforms and online tools are making it easier for individuals to access financial advice and manage their investments.

This trend is particularly appealing to the younger generation, who are comfortable with technology and prefer the convenience of digital solutions. Another trend in the market is the growing demand for sustainable and socially responsible investments. Eastern European investors are becoming more conscious of the environmental and social impact of their investments and are seeking financial advisors who can help them align their investments with their values.

This trend is driven by a combination of factors, including increasing awareness of environmental and social issues, regulatory changes promoting sustainable investing, and the desire for long-term financial stability. Local special circumstances in Eastern Europe also contribute to the development of the Financial Advisory market. The region has a rapidly growing middle class, with increasing disposable income and a desire for wealth accumulation.

This presents a significant opportunity for financial advisors to cater to the needs of this emerging market segment. Additionally, Eastern Europe has a relatively underdeveloped financial sector compared to Western Europe, which creates a demand for professional financial advice. Underlying macroeconomic factors further support the growth of the Financial Advisory market in Eastern Europe.

Economic growth in the region is driving wealth creation and increasing the need for financial planning and investment advice. Additionally, low interest rates and volatile financial markets are pushing investors to seek expert guidance to navigate the complexities of the investment landscape. In conclusion, the Financial Advisory market in Eastern Europe is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The increasing demand for professional financial advice, the adoption of technology, the focus on sustainable investing, the growing middle class, the underdeveloped financial sector, and the macroeconomic environment all contribute to the positive trajectory 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.