Financial Advisory - Portugal | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$38.83bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.34%, resulting in a market volume of US$39.49bn 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 Portugal is experiencing significant growth and development, driven by a number of factors. Customer preferences are shifting towards seeking professional financial advice, and this trend is being supported by local special circumstances and underlying macroeconomic factors.

Customer preferences: Portuguese consumers are increasingly recognizing the value of professional financial advice. With the complexity of financial products and investment options, individuals are seeking expert guidance to help them make informed decisions. This is particularly true for retirement planning, investment strategies, and wealth management. Clients are looking for personalized solutions that take into account their individual goals, risk tolerance, and financial situation.

Trends in the market: One of the key trends in the Financial Advisory market in Portugal is the rise of independent financial advisors. These advisors are not tied to any specific financial institution and can offer unbiased advice to their clients. This trend is driven by the increasing demand for transparency and the desire for objective recommendations. Independent advisors are able to offer a wide range of products and services from different providers, allowing them to tailor their advice to the specific needs of each client. Another trend in the market is the growing popularity of digital platforms and robo-advisors. These platforms use algorithms and technology to provide automated investment advice and portfolio management. They offer a cost-effective solution for individuals with smaller investment amounts and provide access to a diversified range of investment options. The convenience and accessibility of these platforms appeal to younger generations who are comfortable with technology and prefer a digital-first approach.

Local special circumstances: Portugal has a rapidly aging population, with a significant portion of the population reaching retirement age. This demographic shift has created a demand for retirement planning and wealth management services. Individuals are seeking guidance on how to maximize their retirement savings, ensure a steady income stream, and protect their assets for future generations. The Financial Advisory market in Portugal is well-positioned to cater to this demand and provide tailored solutions for retirees.

Underlying macroeconomic factors: The Portuguese economy has been recovering steadily from the global financial crisis. This has led to increased consumer confidence and a willingness to invest in financial products. Low interest rates have also incentivized individuals to seek alternative investment options to generate higher returns. As a result, the demand for financial advisory services has grown, as individuals seek guidance on how to navigate the complex and ever-changing investment landscape. In conclusion, the Financial Advisory market in Portugal is experiencing growth and development driven by shifting customer preferences, local special circumstances, and underlying macroeconomic factors. The rise of independent financial advisors and digital platforms, coupled with the demand for retirement planning services, are shaping the market landscape. As the Portuguese economy continues to recover and individuals seek professional guidance for their financial needs, the Financial Advisory market is expected to further expand 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.