Financial Advisory - Pakistan | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$12.66bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.70%, resulting in a market volume of US$13.77bn 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 Pakistan is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in the Financial Advisory market in Pakistan are increasingly seeking professional advice to help them make informed decisions about their investments and financial planning. They are looking for expert guidance to navigate the complex financial landscape and optimize their returns. This growing demand for financial advisory services is fueled by the increasing awareness among customers about the benefits of seeking professional advice, as well as the desire to achieve their financial goals.

Trends in the market: One of the key trends in the Financial Advisory market in Pakistan is the rise of digital platforms and robo-advisors. These platforms leverage technology to provide personalized investment advice and automated portfolio management, making it more accessible and affordable for customers. This trend is driven by the increasing adoption of digital technologies, as well as the need for convenience and ease of access to financial advisory services. Another trend in the market is the growing focus on sustainable and socially responsible investing. Customers in Pakistan are becoming more conscious about the environmental and social impact of their investments, and are seeking financial advisors who can help them align their investments with their values. This trend is driven by the global shift towards sustainability and responsible investing, as well as the increasing awareness among customers about the importance of environmental and social factors in investment decisions.

Local special circumstances: The Financial Advisory market in Pakistan is also influenced by local special circumstances. The country has a large population with a significant proportion of young individuals who are entering the workforce and starting to accumulate wealth. This demographic dividend presents a huge opportunity for financial advisors to cater to the needs of this growing customer segment and help them make informed financial decisions. Furthermore, the regulatory environment in Pakistan is evolving to promote transparency and protect the interests of customers. The Securities and Exchange Commission of Pakistan (SECP) has introduced regulations and guidelines to ensure that financial advisors operate in a fair and ethical manner. This regulatory oversight provides customers with confidence and trust in the financial advisory industry, further driving the growth of the market.

Underlying macroeconomic factors: The development of the Financial Advisory market in Pakistan is also influenced by underlying macroeconomic factors. The country has experienced stable economic growth in recent years, which has resulted in an increase in disposable income and wealth creation. As individuals accumulate wealth, they seek professional advice to manage and grow their assets, leading to the growth of the financial advisory market. Additionally, the low interest rate environment in Pakistan has encouraged individuals to explore alternative investment options to generate higher returns. This has created a demand for financial advisory services to help customers identify investment opportunities and manage their risk. In conclusion, the Financial Advisory market in Pakistan is developing rapidly due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The increasing demand for professional advice, the rise of digital platforms, the focus on sustainable investing, the young population, the evolving regulatory environment, and the stable economic growth are all contributing to the growth and development of the 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).

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.