Market Insights Financial Wealth Management

Financial Advisory - Brazil

Brazil

Assets under Management in the Financial Advisory market are projected to reach €709.70bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 3.50%, resulting in a market volume of €842.80bn by 2029.

Key regions: United States, Singapore, Europe, Switzerland, Canada

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Comparación de regiones

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Analyst Opinion

The Financial Advisory market in Brazil has been experiencing significant growth in recent years.

Customer preferences: Customers in Brazil have shown a strong preference for personalized and comprehensive financial advice. They value the expertise and guidance provided by financial advisors to help them navigate the complex financial landscape. Additionally, customers are increasingly seeking digital solutions and online platforms that provide convenient access to financial advice.

Trends in the market: One of the key trends in the Financial Advisory market in Brazil is the increasing demand for wealth management services. As the country's middle class continues to grow, more individuals are accumulating wealth and looking for professional assistance in managing their assets. This has led to a rise in the number of financial advisory firms offering tailored wealth management solutions. Another trend in the market is the integration of technology into financial advisory services. Many firms are leveraging digital tools and platforms to enhance the customer experience and streamline their operations. Online platforms and mobile applications are being used to provide real-time financial advice, portfolio tracking, and investment recommendations. This trend is driven by the increasing adoption of smartphones and internet connectivity in Brazil.

Local special circumstances: Brazil has a complex and ever-changing regulatory environment, which poses challenges for financial advisors operating in the country. Advisors need to stay updated with the latest regulations and ensure compliance with the local laws. Additionally, the high level of income inequality in Brazil creates unique challenges for financial advisors, as they need to cater to the diverse needs and financial goals of their clients.

Underlying macroeconomic factors: The growth of the Financial Advisory market in Brazil is closely tied to the overall economic conditions in the country. Brazil has experienced periods of economic volatility and recession in recent years, which has increased the need for financial advice. During times of economic uncertainty, individuals and businesses seek professional guidance to protect and grow their wealth. Furthermore, the low interest rate environment in Brazil has also contributed to the growth of the Financial Advisory market. With lower returns on traditional savings and investment products, individuals are turning to financial advisors to explore alternative investment opportunities and maximize their returns. In conclusion, the Financial Advisory market in Brazil is developing due to customer preferences for personalized advice, the increasing demand for wealth management services, the integration of technology into financial advisory services, the complex regulatory environment, and the underlying macroeconomic factors such as economic volatility and low interest rates. Financial advisors in Brazil need to adapt to these trends and special circumstances to effectively serve their clients and capitalize on the growth opportunities in the market.

Methodology

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).