Financial Advisory - Romania | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$34.55bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.69%, resulting in a market volume of US$35.76bn 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 Romania has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Financial Advisory market have shifted towards seeking professional advice and guidance to make informed investment decisions.

Investors in Romania are becoming more aware of the complexities of financial markets and are increasingly seeking the expertise of financial advisors to navigate these complexities. They value the personalized advice and tailored solutions that financial advisors can provide, as well as the convenience of having a trusted professional manage their investments. One of the key trends in the Financial Advisory market in Romania is the increasing demand for digital advisory services.

With the rise of technology and the internet, investors are looking for more accessible and convenient ways to manage their investments. Digital platforms and robo-advisors have gained popularity in Romania, offering automated investment solutions and personalized advice through algorithms. These platforms provide cost-effective solutions and cater to the tech-savvy younger generation who prefer digital interactions.

Another trend in the market is the growing interest in sustainable and socially responsible investing. Investors in Romania are increasingly conscious of the environmental and social impact of their investments and are seeking financial advisors who can provide them with sustainable investment options. This trend is in line with the global shift towards responsible investing and reflects the growing awareness of environmental and social issues among investors.

Local special circumstances also play a role in the development of the Financial Advisory market in Romania. The country has a relatively low level of financial literacy, with many individuals lacking the knowledge and understanding of financial products and investment strategies. This creates a demand for financial advisors who can educate and guide individuals in making informed investment decisions.

Additionally, the regulatory environment in Romania is evolving, with new regulations aimed at increasing transparency and consumer protection in the financial services industry. These regulations are driving the need for professional financial advisors who can adhere to the new requirements and provide trustworthy advice to clients. Underlying macroeconomic factors also contribute to the growth of the Financial Advisory market in Romania.

The country has experienced steady economic growth in recent years, leading to an increase in disposable income and wealth accumulation. As individuals accumulate wealth, they seek professional advice on how to manage and grow their assets, creating a demand for financial advisory services. Furthermore, the low interest rate environment in Romania has made traditional savings accounts less attractive, prompting individuals to explore alternative investment options and seek the expertise of financial advisors.

In conclusion, the Financial Advisory market in Romania is developing due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Investors in Romania are increasingly seeking professional advice, with a growing interest in digital advisory services and sustainable investing. The low level of financial literacy and evolving regulatory environment in the country also contribute to the demand for financial advisors.

The steady economic growth and low interest rate environment in Romania further drive the need for financial advisory services.

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.