Financial Advisory - Singapore | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$196.80bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.42%, resulting in a market volume of US$201.00bn 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 Singapore has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Singapore have shifted towards seeking professional financial advice, as individuals become more aware of the importance of financial planning and wealth management.

With a growing middle class and increasing disposable income, Singaporeans are looking for ways to optimize their investments and secure their financial future. This has led to a higher demand for financial advisory services, as individuals seek expert advice to navigate the complex financial landscape and make informed decisions. In addition, the local special circumstances in Singapore have also contributed to the development of the Financial Advisory market.

Singapore is known for its strong regulatory framework and investor protection measures, which have fostered a sense of trust and confidence in the financial industry. The government has also introduced initiatives to promote financial literacy and encourage individuals to seek professional advice. These factors have created a conducive environment for the growth of the Financial Advisory market in Singapore.

Trends in the market include the rise of robo-advisors, which have gained popularity among tech-savvy Singaporeans. Robo-advisors offer automated investment solutions, utilizing algorithms to create personalized investment portfolios based on individual risk profiles and financial goals. This technology-driven approach appeals to a younger generation of investors who are comfortable with digital platforms and prefer a more cost-effective and convenient way to manage their investments.

Another trend in the market is the increasing focus on sustainable and responsible investing. Singaporeans are becoming more conscious of environmental, social, and governance (ESG) factors when making investment decisions. This has led to a growing demand for financial advisors who can provide guidance on ESG investing strategies and help clients align their investments with their values.

Local special circumstances in Singapore, such as its position as a global financial hub and its multicultural society, also play a role in shaping the Financial Advisory market. Singapore's status as a global financial center attracts international investors, creating opportunities for financial advisors to cater to a diverse client base. Additionally, the multicultural nature of Singapore means that financial advisors need to be sensitive to the different cultural norms and preferences of their clients, further driving the need for personalized and tailored financial advice.

Underlying macroeconomic factors, such as Singapore's strong economic growth and stable political environment, provide a solid foundation for the development of the Financial Advisory market. The government's commitment to maintaining a business-friendly environment and promoting Singapore as a wealth management hub further supports the growth of the industry. In conclusion, the Financial Advisory market in Singapore is experiencing growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors.

The demand for professional financial advice, the presence of a strong regulatory framework, and the rise of technology-driven solutions are driving the development of the market. As Singapore continues to position itself as a global financial hub, the Financial Advisory market is expected to continue growing and evolving to meet the needs of a diverse and sophisticated client base.

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.