Financial Advisory - Zimbabwe | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$2.12bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.46%, resulting in a market volume of US$2.28bn 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 Zimbabwe has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Zimbabwe, customers are increasingly seeking professional financial advice to help them navigate the complex and volatile financial landscape. This is due to a combination of factors, including the limited financial literacy among the population and the desire for personalized and tailored financial solutions. Customers are looking for advisors who can provide them with comprehensive financial planning, investment advice, and risk management strategies. They also value advisors who have a deep understanding of the local market and can offer insights into the unique challenges and opportunities in Zimbabwe.

Trends in the market: One of the key trends in the Financial Advisory market in Zimbabwe is the rise of independent financial advisors. As customers become more aware of the importance of financial planning, they are seeking advisors who can offer unbiased advice and recommendations. Independent advisors are able to provide a wide range of financial products and services from different providers, giving customers access to a broader range of options. This trend is also driven by the increasing number of individuals who are self-employed or running their own businesses, as they require specialized financial advice to manage their finances effectively. Another trend in the market is the growing demand for sustainable and socially responsible investments. Customers in Zimbabwe are becoming more conscious of the impact of their investments on the environment and society, and they are seeking advisors who can help them align their investments with their values. This trend is in line with global developments, as sustainable investing has gained traction worldwide.

Local special circumstances: The Financial Advisory market in Zimbabwe is also influenced by local special circumstances. The country has a high level of financial exclusion, with a significant portion of the population lacking access to formal financial services. This presents both challenges and opportunities for financial advisors. On one hand, there is a large untapped market of potential customers who could benefit from financial advice. On the other hand, advisors need to find innovative ways to reach these customers and provide them with affordable and accessible services.

Underlying macroeconomic factors: The development of the Financial Advisory market in Zimbabwe is also influenced by underlying macroeconomic factors. The country has been experiencing economic challenges in recent years, including high inflation, currency volatility, and limited access to foreign exchange. These factors have created a need for financial advice and planning, as individuals and businesses seek strategies to protect and grow their wealth in a challenging economic environment. Additionally, the government has implemented reforms to attract foreign investment and stimulate economic growth, which has created opportunities for financial advisors to assist both local and international investors. In conclusion, the Financial Advisory market in Zimbabwe is developing rapidly due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. Customers are seeking professional advice to help them navigate the financial landscape, and independent advisors are gaining popularity. The demand for sustainable and socially responsible investments is also on the rise. However, the market faces challenges due to financial exclusion and economic instability. Overall, the Financial Advisory market in Zimbabwe presents both opportunities and challenges for advisors looking to expand their business in the region.

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.