Financial Advisory - Ethiopia | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$844.20m in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.11%, resulting in a market volume of US$848.70m 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 Ethiopia has been experiencing significant growth in recent years.

Customer preferences: Ethiopian customers have shown a growing interest in seeking financial advice to help them navigate the complexities of the financial landscape. They are increasingly looking for professional guidance on investment strategies, retirement planning, and wealth management. This shift in customer preferences can be attributed to the increasing awareness and importance of financial planning and the desire to make informed decisions about their financial future.

Trends in the market: One of the key trends in the Financial Advisory market in Ethiopia is the rising demand for personalized and tailored financial advice. Customers are seeking advisors who can provide customized solutions based on their individual goals, risk tolerance, and financial circumstances. This trend is driven by the growing complexity of financial products and the need for expert guidance to make informed investment decisions. Another trend in the market is the adoption of technology in the delivery of financial advisory services. Digital platforms and online tools are becoming increasingly popular, allowing customers to access financial advice conveniently and at their own pace. This trend is particularly appealing to the younger generation who are tech-savvy and prefer digital solutions.

Local special circumstances: Ethiopia has a rapidly growing middle class, which is driving the demand for financial advisory services. As more individuals accumulate wealth, they are seeking professional guidance to help them manage and grow their assets. Additionally, the government's focus on economic development and financial inclusion has created a favorable environment for the growth of the Financial Advisory market.

Underlying macroeconomic factors: Ethiopia has been experiencing strong economic growth in recent years, which has contributed to the expansion of the Financial Advisory market. The country's GDP growth, increasing foreign direct investment, and improving business environment have created opportunities for individuals and businesses to accumulate wealth and seek financial advice. Furthermore, the government's efforts to promote financial literacy and inclusion have played a crucial role in the development of the Financial Advisory market. By educating the population about the importance of financial planning and providing access to financial services, more individuals are becoming aware of the benefits of seeking professional advice. In conclusion, the Financial Advisory market in Ethiopia is experiencing significant growth due to changing customer preferences, including the demand for personalized advice and the adoption of technology. The country's growing middle class, government initiatives, and favorable macroeconomic factors have also contributed to the expansion of the market. As Ethiopia continues to develop economically, the demand for financial advisory services is expected to further increase in the coming years.

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.