Financial Advisory - Iran

Iran

Highlights

Assets under Management in the Financial Advisory market are projected to reach US$27.44bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.35%, resulting in a market volume of US$27.92bn by 2029.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Financial Advisory market in Iran is experiencing significant growth and development in recent years.

Customer preferences: Customers in Iran are increasingly seeking professional financial advice to help them make informed investment decisions and manage their wealth. They are looking for personalized and tailored solutions that can address their specific financial goals and risk tolerance. This growing demand for financial advisory services is driven by several factors, including a rising middle class, increasing financial literacy, and a desire for more sophisticated investment options.

Trends in the market: One of the key trends in the Financial Advisory market in Iran is the shift towards fee-based advisory services. Traditionally, financial advisors in Iran have relied on commissions from product sales as their primary source of income. However, there is a growing recognition that this model may create conflicts of interest and may not always be in the best interest of the clients. As a result, more financial advisors are transitioning to a fee-based model, where they charge clients a fixed fee or a percentage of assets under management for their services. This trend is driven by a desire to align the interests of the advisor and the client and to provide more transparent and objective advice. Another trend in the market is the increasing use of technology in financial advisory services. Many financial advisors in Iran are leveraging digital platforms and tools to enhance their service offerings and reach a wider audience. This includes online investment platforms, robo-advisors, and mobile applications that allow clients to access their portfolios and receive real-time advice. Technology is also enabling financial advisors to streamline their operations, automate certain tasks, and provide more efficient and cost-effective services to their clients.

Local special circumstances: Iran has a unique set of circumstances that are shaping the development of the Financial Advisory market. The country has a large and young population, with a significant portion of the population entering the workforce and accumulating wealth. This demographic dividend presents a huge opportunity for financial advisors to cater to the needs of this emerging middle class and help them achieve their financial goals. However, there are also challenges that financial advisors in Iran need to navigate. The country has a complex regulatory environment, with strict rules and regulations governing the financial services industry. Financial advisors need to ensure compliance with these regulations while also providing high-quality advice to their clients. Additionally, geopolitical tensions and economic sanctions have created uncertainties in the Iranian economy, which can impact investment decisions and the overall demand for financial advisory services.

Underlying macroeconomic factors: The development of the Financial Advisory market in Iran is also influenced by underlying macroeconomic factors. The country has been experiencing economic reforms and liberalization, which have led to increased access to financial services and a more open and competitive market. This has created opportunities for new entrants and has encouraged existing financial institutions to expand their service offerings. Furthermore, the Iranian government has been actively promoting the development of the financial services sector, including the Financial Advisory market. This includes initiatives to enhance financial literacy, improve the regulatory framework, and attract foreign investment. These efforts are aimed at creating a more vibrant and sustainable financial services industry that can support the country's economic growth and development. In conclusion, the Financial Advisory market in Iran is witnessing significant growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, financial advisors in Iran need to adapt to these changes and seize the opportunities presented by this dynamic and promising 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).