Financial Advisory - Puerto Rico | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$37.72bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.75%, resulting in a market volume of US$39.16bn 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 Puerto Rico has been experiencing significant growth in recent years. Customer preferences have shifted towards seeking professional financial advice, leading to an increased demand for financial advisory services. This trend can be attributed to several factors, including the growing complexity of financial markets, changing regulations, and a desire for personalized financial planning.

Customer preferences: Puerto Rican customers have become more aware of the importance of financial planning and investment management. They are seeking professional advice to help them navigate the complexities of the financial markets and make informed decisions. The increasing complexity of investment options, such as mutual funds and retirement plans, has made it more difficult for individuals to manage their finances on their own. As a result, they are turning to financial advisors for guidance and expertise.

Trends in the market: One of the key trends in the Financial Advisory market in Puerto Rico is the rise of robo-advisors. These digital platforms use algorithms to provide automated investment advice and portfolio management. Robo-advisors have gained popularity among tech-savvy customers who prefer a low-cost and convenient solution for their financial needs. This trend reflects the global shift towards digitalization in the financial industry. Another trend in the market is the increasing demand for sustainable and socially responsible investments. Puerto Rican customers are becoming more conscious of the environmental and social impact of their investments. They are seeking financial advisors who can help them align their investment goals with their values. This trend is in line with the growing global focus on sustainability and responsible investing.

Local special circumstances: Puerto Rico has a unique tax environment that influences customer preferences in the Financial Advisory market. The island is known for its favorable tax incentives, including tax breaks for residents and businesses. This has attracted wealthy individuals and investors to Puerto Rico, creating a niche market for high-net-worth financial advisory services. Financial advisors in Puerto Rico need to have a deep understanding of the local tax laws and regulations to provide effective advice to their clients.

Underlying macroeconomic factors: The growth of the Financial Advisory market in Puerto Rico is also influenced by underlying macroeconomic factors. The island has been recovering from a severe economic recession, which has increased the need for financial planning and investment management. As the economy improves, individuals and businesses are looking for ways to optimize their financial resources and make the most of the recovery. This has created a favorable environment for the Financial Advisory market to thrive. In conclusion, the Financial Advisory market in Puerto Rico is experiencing significant growth due to changing customer preferences, including a desire for professional financial advice and personalized financial planning. The rise of robo-advisors and the demand for sustainable investments are key trends in the market. The local tax environment and the ongoing economic recovery also play a role in shaping the market dynamics. Overall, the Financial Advisory market in Puerto Rico is poised for continued growth 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.