Financial Advisory - South America

Assets under Management in the Financial Advisory market are projected to reach US$912.60bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.85%, resulting in a market volume of US$1.05tn 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 South America is experiencing significant growth and development. Customer preferences in South America have shifted towards seeking professional financial advice to help them navigate the complexities of the financial markets.

This is driven by a growing middle class and increasing financial literacy among the population. Customers are becoming more aware of the benefits of working with financial advisors to achieve their financial goals and secure their financial future. Additionally, customers are seeking personalized and tailored advice that takes into account their unique financial situation and goals.

One of the key trends in the Financial Advisory market in South America is the increasing demand for investment advice. As the region experiences economic growth and stability, individuals are looking for opportunities to invest their savings and grow their wealth. Financial advisors are well-positioned to provide guidance on investment strategies and help clients make informed decisions about where to allocate their funds.

This trend is driven by a combination of factors, including low interest rates, a desire for higher returns, and a shift towards long-term investment planning. Another trend in the market is the rise of digital financial advisory platforms. South America has seen a rapid increase in internet penetration and smartphone usage, making it easier for individuals to access financial advice online.

Digital platforms offer convenience and accessibility, allowing customers to receive financial advice without having to visit a physical office. These platforms often use algorithms and artificial intelligence to provide personalized recommendations based on individual financial goals and risk tolerance. Local special circumstances in South America also contribute to the development of the Financial Advisory market.

The region has a diverse set of economies and financial markets, each with its own unique characteristics and challenges. This presents opportunities for financial advisors to specialize in specific markets and provide targeted advice to clients. Additionally, regulatory frameworks vary across countries, creating a need for advisors who are familiar with local regulations and can navigate the legal landscape.

Underlying macroeconomic factors also play a role in the growth of the Financial Advisory market in South America. Economic stability and growth provide a favorable environment for individuals to seek financial advice and invest their savings. Additionally, favorable interest rate environments and government incentives for savings and investment can further drive demand for financial advisory services.

Overall, the Financial Advisory market in South America is experiencing growth and development due to changing customer preferences, increasing demand for investment advice, the rise of digital platforms, local special circumstances, and underlying macroeconomic factors. As the region continues to develop and its economies grow, the demand for professional financial advice is likely to increase, presenting opportunities for financial advisors to expand their services and reach a larger customer 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.