Financial Advisory - Panama | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$2.78bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.89%, resulting in a market volume of US$2.90bn 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 Panama has been experiencing significant growth in recent years. Customer preferences in the Financial Advisory market in Panama have shifted towards seeking professional advice and guidance for their financial decisions.

This is driven by a growing awareness of the importance of financial planning and the need to make informed investment choices. Customers are increasingly looking for personalized and tailored solutions that can help them achieve their financial goals. They value expertise and experience in the financial industry, and are willing to pay for professional advice that can provide them with a competitive edge in the market.

Trends in the Financial Advisory market in Panama indicate a growing demand for wealth management services. As the country's economy continues to grow and individuals accumulate wealth, there is a greater need for comprehensive financial planning and investment management. Wealthy individuals are seeking sophisticated investment strategies and are willing to pay for the expertise and guidance of financial advisors.

Additionally, there is an increasing demand for retirement planning services, as individuals look to secure their financial future. Local special circumstances in Panama contribute to the development of the Financial Advisory market. The country's strategic location as a financial hub in Latin America attracts international investors and businesses, creating opportunities for financial advisors to serve a diverse client base.

Panama's strong banking sector and favorable regulatory environment also contribute to the growth of the Financial Advisory market. The presence of international banks and financial institutions in the country provides access to a wide range of financial products and services. Underlying macroeconomic factors support the growth of the Financial Advisory market in Panama.

The country's stable economic growth and low inflation rate create a favorable environment for investment. The government's commitment to attracting foreign investment and promoting financial services further strengthens the market. Additionally, Panama's growing middle class and increasing disposable income drive the demand for financial advisory services.

In conclusion, the Financial Advisory market in Panama is developing due to changing customer preferences, increasing demand for wealth management services, local special circumstances, and underlying macroeconomic factors. As individuals seek professional advice and guidance for their financial decisions, the market is expected to continue growing in the coming years.

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.