Market Insights Financial Wealth Management

Financial Advisory - France

France

The Financial Advisory market in France is expected to witness significant growth in the coming years.
According to projections, the total Assets under Management in this market are set to reach €7.67tn by the year 2024.
Furthermore, it is anticipated that these assets will continue to grow at an annual rate of 2.42% from 2024 to 2028, resulting in a market volume of €8.44tn by 2028.
This steady growth indicates the potential for lucrative opportunities in the Financial Advisory market sector in France.
With the rise of fintech platforms and increased regulatory scrutiny, financial advisory services in France are undergoing a transformation to provide more personalized and transparent solutions.

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

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Analyst Opinion

The Financial Advisory market in France is experiencing significant growth and development due to several key factors.

Customer preferences: In recent years, customers in France have shown a growing interest in seeking financial advice to help them navigate the complex and ever-changing financial landscape. This increased demand for financial advisory services can be attributed to several factors. First, individuals are becoming more aware of the importance of financial planning and are seeking professional guidance to help them achieve their financial goals. Second, the increasing complexity of financial products and services has made it difficult for individuals to make informed decisions on their own. As a result, they are turning to financial advisors who can provide them with expert advice and personalized solutions. Finally, the growing number of retirees in France has created a need for retirement planning and investment advice, further driving the demand for financial advisory services.

Trends in the market: One of the key trends in the Financial Advisory market in France is the shift towards fee-based advisory services. Traditionally, financial advisors in France have earned commissions from the sale of financial products. However, there has been a growing recognition of the potential conflicts of interest associated with this model, as advisors may be incentivized to recommend products that offer higher commissions, rather than those that are truly in the best interest of their clients. As a result, there has been a move towards fee-based advisory services, where advisors charge a fee for their advice, rather than earning commissions. This shift is driven by a desire to align the interests of advisors with those of their clients, and to provide more transparent and objective advice.

Local special circumstances: France has a highly regulated financial services industry, with strict rules and regulations governing the provision of financial advice. This has helped to instill confidence in consumers and ensure that they receive high-quality advice. Additionally, France has a strong culture of savings and investment, with individuals placing a high value on financial security and long-term planning. This has created a favorable environment for the growth of the Financial Advisory market, as individuals are willing to seek professional advice to help them achieve their financial goals.

Underlying macroeconomic factors: The growth of the Financial Advisory market in France is also influenced by underlying macroeconomic factors. The country has a stable economy and a high level of disposable income, which provides individuals with the means to invest in financial products and services. Additionally, the low interest rate environment in France has made traditional savings accounts less attractive, leading individuals to seek alternative investment options. This has created a need for financial advisory services to help individuals navigate the various investment opportunities available to them. In conclusion, the Financial Advisory market in France is experiencing significant growth and development due to increasing customer demand for financial advice, a shift towards fee-based advisory services, local special circumstances such as a highly regulated industry and a culture of savings, and underlying macroeconomic factors such as a stable economy and low interest rates. These factors are driving the growth of the market and creating opportunities for financial advisors to provide valuable services to individuals in France.

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).