Financial Advisory - Malawi | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$1.24bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.99%, resulting in a market volume of US$1.37bn 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 Malawi has been experiencing significant growth in recent years.

Customer preferences: Customers in Malawi are increasingly seeking financial advisory services to help them navigate the complex financial landscape. With the growing complexity of financial products and services, individuals and businesses are turning to financial advisors for guidance and expertise. In addition, the increasing importance of retirement planning and investment management has also contributed to the demand for financial advisory services.

Trends in the market: One of the key trends in the Financial Advisory market in Malawi is the shift towards fee-based advisory services. Traditionally, financial advisors in Malawi have been compensated through commissions on the products they sell. However, there is a growing recognition that this compensation model can create conflicts of interest and may not always be in the best interest of the client. As a result, more financial advisors are moving towards a fee-based model, where they charge a flat 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 with those of 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. Digital platforms and robo-advisors are becoming more prevalent in Malawi, offering automated investment advice and portfolio management services. These platforms are appealing to tech-savvy customers who prefer a more convenient and cost-effective way to manage their investments. Additionally, the use of technology allows financial advisors to reach a wider audience and provide personalized advice to clients.

Local special circumstances: Malawi is a developing country with a growing middle class and an expanding economy. This has created a greater need for financial advisory services as individuals and businesses seek to make informed financial decisions. The government has also introduced policies and initiatives to promote financial inclusion and literacy, which have further increased the demand for financial advisory services.

Underlying macroeconomic factors: The Financial Advisory market in Malawi is influenced by several macroeconomic factors. Economic growth, stability, and investment opportunities play a significant role in driving demand for financial advisory services. As the economy continues to grow, individuals and businesses have more wealth to manage and invest, creating opportunities for financial advisors. Inflation rates, interest rates, and exchange rates also impact the market, as they affect the returns on investments and the cost of borrowing. Additionally, government regulations and policies related to the financial sector can shape the market by imposing certain requirements and standards on financial advisors. Overall, the Financial Advisory market in Malawi is experiencing growth due to increasing customer demand, the adoption of fee-based models, the use of technology, and favorable macroeconomic conditions. As the market continues to evolve, financial advisors in Malawi will need to adapt and innovate to meet the changing needs and preferences of their clients.

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.