Financial Advisory - New Zealand | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$220.40bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.45%, resulting in a market volume of US$225.40bn 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 New Zealand is experiencing significant growth and development.

Customer preferences: Customers in New Zealand are increasingly seeking professional financial advice to help them navigate the complex and ever-changing financial landscape. With the rise of digital platforms and the availability of information, customers are becoming more aware of the importance of financial planning and are seeking expert guidance to make informed decisions about their money.

Trends in the market: One of the key trends in the Financial Advisory market in New Zealand is the increasing demand for personalized and tailored financial advice. Customers are looking for advisors who can understand their individual needs and goals, and provide customized solutions. This trend is driven by the growing complexity of financial products and regulations, as well as the desire for more holistic financial planning. Another trend in the market is the rise of robo-advisors. These digital platforms use algorithms and artificial intelligence to provide automated financial advice and investment management. Robo-advisors are gaining popularity among tech-savvy customers who prefer a low-cost and convenient way to manage their finances. However, traditional financial advisors still play a crucial role in providing personalized advice and building long-term relationships with clients.

Local special circumstances: New Zealand has a unique financial landscape, with a strong focus on retirement savings and investment. The country has a well-established pension system, known as KiwiSaver, which encourages individuals to save for their retirement. This has created a strong demand for financial advisors who can help customers navigate the complexities of KiwiSaver and make the most of their retirement savings. Another special circumstance in New Zealand is the country's strong agricultural sector. Agriculture plays a significant role in the economy, and many farmers and rural businesses require specialized financial advice to manage their finances and investments. This creates opportunities for financial advisors with expertise in agricultural finance and rural banking.

Underlying macroeconomic factors: The growth of the Financial Advisory market in New Zealand is supported by several macroeconomic factors. The country has a stable economy and a well-regulated financial sector, which instills confidence in customers and encourages them to seek professional financial advice. New Zealand also has a high level of financial literacy among its population, with a strong emphasis on education and awareness about personal finance. This creates a fertile ground for the Financial Advisory market to thrive, as customers are more likely to understand the value of professional advice and actively seek it out. Furthermore, the government's focus on promoting financial inclusion and consumer protection contributes to the growth of the Financial Advisory market. New Zealand has robust regulations in place to ensure that financial advisors meet certain standards of professionalism and ethics, which enhances customer trust and confidence in the industry. In conclusion, the Financial Advisory market in New Zealand is experiencing growth and development due to customer preferences for personalized advice, the rise of robo-advisors, local special circumstances such as retirement savings and agriculture, and underlying macroeconomic factors including a stable economy and high financial literacy.

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.