Financial Advisory - Philippines | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$109.30bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.39%, resulting in a market volume of US$117.10bn 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 Philippines has been experiencing significant growth in recent years.

Customer preferences: Customers in the Philippines are increasingly seeking financial advice to help them navigate the complex world of investments and financial planning. With the country's growing middle class and rising disposable income, individuals are looking for ways to make their money work harder for them. They are seeking guidance on how to invest their savings, plan for retirement, and protect their assets. Additionally, the younger generation is becoming more financially literate and proactive in managing their finances, creating a demand for financial advisory services.

Trends in the market: One of the key trends in the Financial Advisory market in Philippines is the shift towards fee-based advisory services. Traditionally, financial advisors in the country have relied on commission-based models, where they earn a percentage of the products they sell. However, there is a growing recognition of the potential conflicts of interest that can arise from this model. As a result, more financial advisors are transitioning to a fee-based structure, where they charge clients a flat fee or a percentage of assets under management. 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. Fintech companies are leveraging digital platforms and robo-advisors to provide low-cost, automated investment advice to clients. These platforms use algorithms to analyze client data and provide tailored investment recommendations. This trend is particularly appealing to younger, tech-savvy investors who are comfortable managing their finances online. However, traditional financial advisory firms are also embracing technology to enhance their services and streamline their operations.

Local special circumstances: The Financial Advisory market in Philippines is also influenced by local regulations and cultural factors. The Securities and Exchange Commission (SEC) regulates the industry and sets standards for financial advisors. Compliance with these regulations is essential for advisors to gain the trust and confidence of their clients. Additionally, the Filipino culture places a strong emphasis on personal relationships and trust. Clients prefer to work with advisors who have a good reputation and who they feel comfortable sharing their financial information with. Building strong relationships and providing personalized service are key factors for success in the market.

Underlying macroeconomic factors: The growth of the Financial Advisory market in Philippines is supported by several underlying macroeconomic factors. The country has been experiencing strong economic growth, driven by domestic consumption and investments. This has resulted in an increase in wealth and disposable income, creating a larger pool of potential clients for financial advisors. Additionally, the government has implemented reforms to improve the business environment and attract foreign investments. These reforms have helped to boost investor confidence and stimulate the financial markets. As the economy continues to grow, the demand for financial advisory services is expected to increase further. In conclusion, the Financial Advisory market in Philippines is experiencing growth due to changing customer preferences, including a desire for fee-based services and the increasing use of technology. Local regulations and cultural factors also play a role in shaping the market. The underlying macroeconomic factors, such as strong economic growth and government reforms, are supporting the 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.