Financial Advisory - Malta | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$2.94bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.24%, resulting in a market volume of US$2.97bn 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 Malta has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market have shifted towards a more personalized and holistic approach to financial planning.

Clients are seeking comprehensive advice that takes into account their individual goals, risk tolerance, and financial situation. They are also looking for advisors who can provide a wide range of services, including investment management, retirement planning, and estate planning. This shift in customer preferences has led to an increase in demand for Financial Advisory services in Malta.

Trends in the market are also contributing to the growth of the Financial Advisory sector. One of the key trends is the increasing use of technology in the delivery of financial advice. Digital platforms and robo-advisors are becoming more popular, allowing clients to access financial advice and investment management services online.

This trend has made financial advice more accessible and affordable, attracting a larger customer base. Another trend in the market is the growing importance of sustainable and socially responsible investing. Clients are increasingly interested in investing in companies that have a positive impact on society and the environment.

Financial advisors in Malta are responding to this trend by offering sustainable investment options and incorporating environmental, social, and governance (ESG) factors into their investment strategies. Local special circumstances in Malta are also contributing to the development of the Financial Advisory market. The country's strong financial services industry and favorable regulatory environment have attracted international firms to set up operations in Malta.

This has increased competition in the market and provided clients with a wider choice of financial advisors. Underlying macroeconomic factors, such as low interest rates and an aging population, are also driving the growth of the Financial Advisory market in Malta. Low interest rates have made it more challenging for individuals to generate income from traditional savings and investment products, leading them to seek professional advice on alternative investment strategies.

The aging population has created a need for retirement planning and wealth management services, as individuals look to secure their financial future. In conclusion, the Financial Advisory market in Malta is experiencing growth due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Financial advisors in Malta are adapting to these developments by offering personalized and holistic advice, leveraging technology, incorporating sustainable investing, and taking advantage of the country's favorable regulatory environment.

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.