Financial Advisory - Ukraine | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$11.99bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.34%, resulting in a market volume of US$12.81bn 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 Ukraine has been experiencing significant growth in recent years.

Customer preferences: Ukrainian customers have shown a growing interest in financial advisory services, seeking professional advice to guide their investment decisions. This shift in customer behavior can be attributed to several factors. Firstly, the increasing complexity of financial markets has made it difficult for individuals to navigate on their own. Secondly, the recent economic instability in Ukraine has made people more cautious about their financial decisions, leading them to seek expert advice. Lastly, the growing middle class in Ukraine has created a demand for sophisticated financial services, including financial planning and wealth management.

Trends in the market: One of the key trends in the Financial Advisory market in Ukraine is the rise of digital platforms and robo-advisors. These online platforms offer automated investment advice and portfolio management services, making financial advisory services more accessible and affordable for a wider range of customers. This trend is driven by the increasing use of technology in the financial sector and the desire for convenience and cost-effectiveness among customers. Another trend in the market is the growing demand for sustainable and socially responsible investment options. Ukrainian customers are becoming more aware of the environmental and social impact of their investments and are seeking financial advisors who can help them align their investments with their values. This trend is in line with the global shift towards sustainable investing and reflects the changing preferences of customers in Ukraine.

Local special circumstances: The Financial Advisory market in Ukraine is also influenced by local special circumstances. One of the key factors is the political and economic situation in the country. Ukraine has experienced significant political and economic challenges in recent years, including the conflict with Russia and the economic downturn. These circumstances have created a need for financial advisory services to help individuals and businesses navigate the uncertainty and make informed financial decisions. Another special circumstance is the regulatory environment in Ukraine. The financial advisory industry is regulated by the National Securities and Stock Market Commission, which sets the standards and requirements for financial advisors. This regulatory framework ensures that financial advisors meet certain qualifications and adhere to ethical standards, providing customers with a level of trust and confidence in the services they receive.

Underlying macroeconomic factors: The development of the Financial Advisory market in Ukraine is also influenced by underlying macroeconomic factors. The country's economic growth and stability play a significant role in shaping the demand for financial advisory services. When the economy is growing and stable, individuals and businesses are more likely to seek investment opportunities and financial planning services. On the other hand, during periods of economic uncertainty or recession, the demand for financial advisory services may decrease as people become more cautious with their investments. In conclusion, the Financial Advisory market in Ukraine is developing due to changing customer preferences, including the need for professional advice in navigating complex financial markets, the desire for convenience and cost-effectiveness through digital platforms, and the demand for sustainable and socially responsible investment options. The local special circumstances, such as the political and economic situation and the regulatory environment, also play a role in shaping the market. Additionally, the underlying macroeconomic factors, such as economic growth and stability, influence the demand for financial advisory services in Ukraine.

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.