Market Insights Financial Wealth Management

Financial Advisory - Southern Europe

Southern Europe

Assets under Management in the Financial Advisory market are projected to reach €3.04tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.46%, resulting in a market volume of €3.11tn by 2029.

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

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Región

Comparación de regiones

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Analyst Opinion

The Financial Advisory market in Southern Europe is experiencing significant growth and development. Customer preferences are shifting towards seeking professional financial advice to navigate the complex and volatile financial landscape. This trend is driven by the increasing complexity of financial products and the need for personalized investment strategies.

Customer preferences: Customers in Southern Europe are increasingly seeking professional financial advice to help them make informed investment decisions. They are looking for expert guidance to navigate the complex financial landscape and achieve their financial goals. This shift in customer preferences can be attributed to several factors. Firstly, the increasing complexity of financial products has made it challenging for individuals to make investment decisions on their own. With a wide range of investment options available, customers are seeking the expertise of financial advisors who can provide them with tailored investment strategies. Secondly, the volatile nature of the financial markets has made customers more cautious and risk-averse. They are looking for professional advice to help them manage risks and maximize returns on their investments. Financial advisors can provide customers with a comprehensive understanding of market trends and help them make informed decisions.

Trends in the market: One of the key trends in the Financial Advisory market in Southern Europe is the growing demand for digital advisory services. Customers are increasingly using online platforms and mobile applications to access financial advice. This trend is driven by the convenience and accessibility of digital platforms, which allow customers to receive advice anytime and anywhere. Another trend in the market is the increasing focus on sustainable and socially responsible investments. Customers are becoming more conscious of the environmental and social impact of their investments and are seeking financial advisors who can provide them with sustainable investment options. This trend is driven by the growing awareness of climate change and social issues, and the desire to align investments with personal values.

Local special circumstances: Southern Europe is characterized by a diverse financial landscape, with different countries having their own unique market dynamics. For example, countries like Italy and Spain have a large population of retail investors who are actively seeking financial advice. On the other hand, countries like Greece and Portugal have a smaller population of high-net-worth individuals who require more specialized advisory services. Furthermore, the regulatory environment in Southern Europe is evolving, with new regulations being introduced to protect investors and ensure transparency in the financial markets. Financial advisors need to stay updated with the latest regulatory changes and comply with the requirements to maintain their credibility and trustworthiness.

Underlying macroeconomic factors: The development of the Financial Advisory market in Southern Europe is also influenced by underlying macroeconomic factors. Economic growth, stability, and investor confidence play a crucial role in driving demand for financial advisory services. A strong and stable economy encourages individuals to invest and seek professional advice to maximize their returns. Additionally, the low-interest-rate environment in Southern Europe has made traditional savings and investment options less attractive. Customers are looking for alternative investment opportunities and are turning to financial advisors for guidance. The low-interest-rate environment also presents challenges for financial advisors, as they need to find innovative ways to generate returns for their clients. In conclusion, the Financial Advisory market in Southern Europe is experiencing growth and development due to shifting customer preferences, including the increasing complexity of financial products and the need for personalized investment strategies. The market is witnessing trends such as the growing demand for digital advisory services and the focus on sustainable and socially responsible investments. Local special circumstances, such as the diverse financial landscape and evolving regulatory environment, also influence the market dynamics. Underlying macroeconomic factors, including economic growth and low-interest-rate environment, further contribute to the development of 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).