Financial Advisory - Kazakhstan | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$1.55bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.12%, resulting in a market volume of US$1.56bn 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 Kazakhstan is witnessing significant growth and development in recent years. Customer preferences are shifting towards seeking professional financial advice to make informed investment decisions. This trend is driven by several factors, including the increasing complexity of financial markets and the desire for personalized investment strategies.

Customer preferences: In Kazakhstan, customers are increasingly seeking the services of financial advisors to navigate the complexities of the financial markets. They value the expertise and knowledge that these professionals bring, as well as the personalized investment strategies they offer. Clients are also looking for advisors who can provide comprehensive financial planning services, including retirement planning, tax optimization, and estate planning.

Trends in the market: One of the key trends in the Financial Advisory market in Kazakhstan is the growing demand for wealth management services. As the country's economy continues to grow, individuals and families are accumulating more wealth and are in need of professional guidance to manage and grow their assets. This trend is also fueled by the increasing number of high-net-worth individuals in the country, who require specialized investment strategies tailored to their unique financial goals. Another trend in the market is the rise of digital advisory platforms. These platforms leverage technology to provide cost-effective and convenient financial advice to a wider range of clients. They offer automated investment solutions, personalized portfolio management, and access to a wide range of financial products. This trend is particularly appealing to younger investors who are comfortable with technology and prefer a more hands-off approach to managing their investments.

Local special circumstances: Kazakhstan is a rapidly developing market with a growing middle class. This presents unique opportunities and challenges for the Financial Advisory industry. On one hand, there is a growing demand for financial advice as individuals seek to make the most of their newfound wealth. On the other hand, there is a need for financial advisors to understand the local market dynamics, regulations, and cultural nuances to effectively serve their clients.

Underlying macroeconomic factors: The development of the Financial Advisory market in Kazakhstan is also influenced by several macroeconomic factors. The country's economic growth, stable political environment, and favorable investment climate attract both domestic and foreign investors. This influx of capital creates a need for financial advisors who can help individuals and institutions make informed investment decisions. Furthermore, the government's efforts to diversify the economy and promote the development of the financial sector have also contributed to the growth of the Financial Advisory market. Initiatives such as the establishment of the Astana International Financial Centre and the introduction of financial literacy programs have increased awareness and demand for financial advisory services. In conclusion, the Financial Advisory market in Kazakhstan is experiencing significant growth and development. Customer preferences are shifting towards seeking professional financial advice, and trends such as the rise of wealth management services and digital advisory platforms are shaping the market. Local special circumstances, such as the growing middle class and the need for cultural understanding, further contribute to the market's development. Underlying macroeconomic factors, including economic growth and government initiatives, also play a significant role in driving the growth of the Financial Advisory market in Kazakhstan.

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.