Financial Advisory - Estonia | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$2.89bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.46%, resulting in a market volume of US$2.96bn 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 Estonia has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market in Estonia have shifted towards seeking professional advice and guidance to manage their finances.

This is partly due to the increasing complexity of financial products and the need for expert knowledge to navigate the market. Additionally, customers are becoming more aware of the benefits of long-term financial planning and are seeking advisors to help them achieve their financial goals. One of the key trends in the Financial Advisory market in Estonia is the increasing demand for digital advisory services.

Customers are looking for convenient and accessible ways to manage their finances, and digital platforms provide a solution. These platforms offer a range of services, including investment advice, retirement planning, and budgeting tools, all accessible through mobile apps or online platforms. This trend is driven by the growing use of technology in all aspects of life and the desire for instant access to financial information and services.

Another trend in the Financial Advisory market in Estonia is the focus on sustainable and socially responsible investing. Customers are increasingly interested in investing in companies and funds that align with their values and have a positive impact on the environment and society. This trend is driven by a growing awareness of environmental and social issues, as well as the desire to make a difference through investment choices.

Financial advisors are responding to this trend by offering sustainable investment options and incorporating environmental, social, and governance (ESG) factors into their investment strategies. Local special circumstances in Estonia also contribute to the development of the Financial Advisory market. Estonia has a well-developed digital infrastructure and a high level of internet penetration, which makes it an ideal environment for digital financial services.

Additionally, the Estonian government has been supportive of fintech innovation and has implemented policies and regulations to foster the growth of the sector. These factors have attracted both local and international financial advisory firms to establish a presence in Estonia. Underlying macroeconomic factors, such as a stable economy and favorable investment climate, also play a role in the development of the Financial Advisory market in Estonia.

Estonia has experienced steady economic growth in recent years, with low unemployment and a favorable business environment. This provides a solid foundation for individuals and businesses to seek financial advice and make informed investment decisions. In conclusion, the Financial Advisory market in Estonia is developing due to customer preferences for professional advice, the trend towards digital advisory services, the focus on sustainable investing, local special circumstances such as a supportive regulatory environment, and underlying macroeconomic factors such as a stable economy.

These factors are driving the growth of the market and shaping the future of financial advisory services in Estonia.

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.