Market Insights Financial Wealth Management

Financial Advisory - Israel

Israel

Assets under Management in the Financial Advisory market are projected to reach €151.80bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.60%, resulting in a market volume of €156.40bn by 2029.

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

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Analyst Opinion

The Financial Advisory market in Israel is experiencing significant growth and development in recent years.

Customer preferences: Customers in Israel are increasingly seeking professional financial advice to help them navigate the complex and ever-changing financial landscape. They value the expertise and guidance provided by financial advisors in making informed investment decisions. Additionally, there is a growing demand for personalized financial planning services to help individuals and businesses achieve their financial goals.

Trends in the market: One of the key trends in the Financial Advisory market in Israel is the increasing adoption of technology. Many financial advisory firms are leveraging digital platforms and tools to enhance their service offerings and improve the overall customer experience. This includes the use of robo-advisors, online financial planning tools, and mobile applications. The convenience and accessibility of these technologies are attracting a new generation of tech-savvy customers. Another trend in the market is the shift towards sustainable and socially responsible investing. Israeli investors are becoming more conscious of the environmental, social, and governance (ESG) factors associated with their investment decisions. As a result, financial advisors are incorporating ESG considerations into their investment strategies and offering specialized ESG-focused advisory services.

Local special circumstances: Israel has a strong and vibrant startup ecosystem, which has contributed to the growth of the Financial Advisory market. Many startups and entrepreneurs require specialized financial advice to navigate the unique challenges and opportunities associated with their ventures. Financial advisors in Israel are well-positioned to provide tailored guidance to these individuals and help them make informed decisions regarding funding, growth strategies, and exit options. Another special circumstance in Israel is the country's high level of geopolitical risk. This creates a need for financial advisors who can help clients manage and mitigate these risks. Advisors with expertise in international markets and geopolitical dynamics are in high demand as they can provide valuable insights and guidance to clients seeking to diversify their investments and protect their wealth.

Underlying macroeconomic factors: Israel's strong and stable economy, coupled with a favorable regulatory environment, has created a conducive environment for the growth of the Financial Advisory market. The country has a well-developed financial services industry and a robust capital market, which provides ample opportunities for financial advisors to offer their services. Additionally, Israel has a high rate of household savings, indicating a strong culture of financial planning and investment. This provides a steady stream of potential clients for financial advisors and contributes to the overall growth of the market. In conclusion, the Financial Advisory market in Israel is experiencing significant growth and development driven by customer preferences for professional advice, the adoption of technology, the demand for sustainable investing, and the unique circumstances of the local market. The underlying macroeconomic factors, including a strong economy and a favorable regulatory environment, further support the growth of the market. Financial advisors in Israel are well-positioned to capitalize on these trends and provide valuable guidance to clients seeking to navigate the complex financial landscape.

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).