Financial Advisory Services Market Outlook - 2027

Financial advisory services have experienced significant growth since past few years. A financial advisory service enables its clients to utilize their current financial resources to meet future needs and goals. It generally includes advice and guidance services that addresses investment management, budgeting, accounting, auditing, tax planning, estate planning, and mergers & acquisitions. In addition, end users are also adopting these services for employee benefit planning, portfolio management, wealth management, brokerage services, and other solutions. Large number of service providers have been leveraging firm’s capital, data and risk analytics, and other financial modeling practices to provide enhanced customer experience to their clients.

Market scope and structure analysis:

COVID-19 scenario analysis:

• Financial advisory is one of the most major supporting services for overall economic environment. Organizations are struggling with customer confidence and trust, owing to COVID-19. 
• COVID-19 has impacted all industries and caused business disruptions, however, many financial advisory companies are still accessing remotely with their clients for business continuity.  
• Growth in economic impact of this pandemic on large as well as SMEs is expected to create lucrative opportunities for the market in the coming years. 

Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis

Globally, a number of small & medium-sized businesses have witnessed significant growth in past few years, which has led to growth in need for financial advisory services. Increase in focus on brand expansion to withstand competitors in the market and increase in number of retail investors, low financial awareness among high net individuals drive the industry. However, high costs associated with these professional services hinder the market growth. 

The impact of COVID-19 on all industries is expected to create lucrative opportunities for the financial advisory services during the forecast period. Surge in need for financial advisors to overcome liquidity issues and to rebuild structures of companies is expected to drive the market in the coming months. 

The global financial advisory services market trends are as follows:

Launch of cost effective services to flourish the market:

Impact of COVID-19 has been driving several financial advisory firms to offer their services at lower costs or completely free to their customers. For instance, In May 2020, an Indian brokerage firm, Sharekhan by BNP Paribas announced to offer free financial advisory services to clients in light of the pandemic. Similarly, in May 2020, H&R Block financial Services Company in the U.S. started offering CARES Act advisory services for $99 to small businesses. This trend shows that the current need for financial advisory services drive major players to promote their services to build customers and retain them.

Surge in need for online financial advisors:

Globalization process of the world's economies has led to massive marketing possibilities for online advisors that have been offering their services beyond every possible limit. In addition, increase in number of retail investors has been recorded in past few years. Investment houses, auditing, real estate brokers, consumer finance, and mortgage lending are some of key industries that lead to growth of online advisors in the industry. Online advisors charge relatively small fees, thus making it a more convenient and efficient option for SMEs to get financial advisory services.

Key segments covered:

Key benefits of the report:

• This study presents analytical depiction of the global financial advisory services market size along with the current trends and future estimations to determine the imminent investment pockets.    
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global financial advisory services market share.     
• The current market is quantitatively analyzed from 2020 to 2027 to highlight the growth scenario.         
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
• The report provides a detailed market analysis based on the present and future competitive intensity of the financial advisory services market.