Financial Advisory - United Kingdom

Assets under Management in the Financial Advisory market are projected to reach US$11.04tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 2.79%, resulting in a market volume of US$12.67tn 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 United Kingdom has been experiencing significant growth in recent years.

Customer preferences: Customers in the United Kingdom have shown a strong preference for financial advisory services. This can be attributed to several factors, including the increasing complexity of financial products and the desire for expert advice in managing personal finances. Additionally, the growing awareness of the importance of financial planning and the need for long-term investment strategies has also contributed to the demand for financial advisory services.

Trends in the market: One of the key trends in the Financial Advisory market in United Kingdom is the shift towards fee-based advisory services. Traditionally, financial advisors in the United Kingdom have been compensated through commissions earned from the sale of financial products. However, there has been a growing trend towards fee-based advisory services, where advisors charge a fee for their advice rather than earning commissions. This shift is driven by a desire for greater transparency and the need to align the interests of advisors with those of their clients. Another trend in the market is the increasing use of technology in financial advisory services. The advent of robo-advisors and online platforms has made it easier for individuals to access financial advice and manage their investments. These platforms use algorithms to provide personalized investment recommendations and offer low-cost solutions, making financial advisory services more accessible to a wider range of customers.

Local special circumstances: The Financial Advisory market in United Kingdom is also influenced by local special circumstances. One such circumstance is the regulatory environment. The Financial Conduct Authority (FCA) in the United Kingdom has implemented several regulations to protect consumers and ensure that financial advisors act in the best interests of their clients. These regulations have increased the level of professionalism and accountability in the industry, which has further boosted customer confidence in financial advisory services.

Underlying macroeconomic factors: The growth of the Financial Advisory market in United Kingdom can be attributed to several underlying macroeconomic factors. The United Kingdom has a well-developed financial services sector, which provides a strong foundation for the growth of financial advisory services. Additionally, the low interest rate environment in recent years has increased the demand for investment products and services, as individuals seek higher returns on their savings. The growing wealth and disposable income of individuals in the United Kingdom has also contributed to the demand for financial advisory services, as people look for ways to manage and grow their wealth. In conclusion, the Financial Advisory market in United Kingdom is experiencing significant growth due to customer preferences for expert financial advice, the shift towards fee-based advisory services, the increasing use of technology, local special circumstances such as regulatory environment, and underlying macroeconomic factors such as the well-developed financial services sector and low interest rates.

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.