Financial Advisory - Germany | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$8.55tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.43%, resulting in a market volume of US$9.64tn 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 Germany has seen significant growth in recent years, driven by customer preferences for personalized and holistic financial advice. With a strong emphasis on long-term planning and wealth preservation, German investors are increasingly turning to financial advisors to help navigate complex investment landscapes and achieve their financial goals.

Customer preferences in the Financial Advisory market in Germany are largely shaped by a desire for personalized and tailored advice. German investors value a holistic approach to financial planning, which includes comprehensive analysis of their financial situation, risk tolerance, and long-term goals. They seek advisors who can provide customized investment strategies that align with their individual needs and preferences.

One of the key trends in the Financial Advisory market in Germany is the growing demand for sustainable and socially responsible investments. German investors are increasingly conscious of the environmental and social impact of their investments and are seeking advisors who can offer them ethical investment options. This trend is driven by a combination of factors, including increased awareness of climate change and sustainability issues, as well as regulatory initiatives promoting responsible investing.

Another trend in the market is the rise of digitalization and technology-driven solutions. German investors are increasingly comfortable with using digital platforms and tools to manage their finances and seek financial advice. This has led to the emergence of robo-advisory services, which use algorithms and automation to provide low-cost investment advice.

While traditional financial advisors still play a crucial role in the market, the adoption of technology has allowed for greater accessibility and convenience for investors. Local special circumstances in the Financial Advisory market in Germany include the strong preference for conservative investment strategies and the importance of trust and credibility. German investors are generally risk-averse and prioritize capital preservation over aggressive growth.

They value advisors who can provide them with stable and reliable investment options. Underlying macroeconomic factors that have contributed to the development of the Financial Advisory market in Germany include a low-interest-rate environment and an aging population. With low interest rates, German investors are seeking alternative investment options to generate higher returns.

Additionally, the aging population has led to an increased need for retirement planning and wealth management services, creating opportunities for financial advisors. In conclusion, the Financial Advisory market in Germany is experiencing growth due to customer preferences for personalized and holistic financial advice, the demand for sustainable and socially responsible investments, the rise of digitalization, and local special circumstances such as conservative investment strategies and the importance of trust. These trends are further supported by underlying macroeconomic factors such as low interest rates and an aging population.

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.