Financial Advisory Sector –Australia Mass Affluent Population: Ken Research REQUEST FOR SAMPLE REPORT Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit Ken Research announced latest publication titled “Australian Advisors and their Clients” which analyses the current advisor client, identifying key demographics and behaviors, improving customer satisfaction and client retention. Prospective clients are also analyzed sizing the potential market and the strategies necessary to grow the customer base. Report also identifies key customer demographics within the financial advisor client base. The Australian financial advisor market is still recovering from the impact of global financial crisis 2008. To avoid such catastrophes in future, the Australian Government focused on bringing about reforms in the financial advisory market by establishing the Future of Financial Advice (FOFA). The aim of FOFA reforms is to improve the confidence and trust of Australian retail investors in the financial services industry along with ensuring that financial advice is available, accessible and affordable. However, because the financial advisors and government gave highest priority to bringing about and adapting reforms in the industry, they ended up neglecting customer needs to a certain extent. This also resulted in loss of clientele for leading players in the Australian financial advisory market. But, with the final structure of FOFA regulations in place, the industry has finally begun to show signs of recovery. The following figure gives us a recap of demand slump and growth in the Australian financial advisory industry: From the above figure, it can be interpreted that though between 2010-2013 the demand in the Australian financial advisory industry slumped, 2014 came as year of optimistic results. In fact, the number of people seeking financial advice reached 2.5 million in 2014, up by 1 million as compared to the previous year. This growth can be attributed to the increasing concern amongst Australians regarding their finances such as the adequacy of retirement savings, enough funds to tackle any future financial crisis and efficiency of cash -flow management. Additionally, since the FOFA reforms have been made mandatory it has become imperative for financial advisors to offer unbiased, efficient and transparent advice. This is also one of the reasons that are propelling growth in the Australian financial advisory market. The new advisors are now focusing on delivering the right advice and the correct time and in the relevant context. All these factors have led to the Australians developing more trust and confidence on financial advisors. In fact, research suggests that 1.9 million Australian adults (new) showed interest in seeking financial advice in 2015, as opposed to 1.5 million in 2013.With robust regulations and increasing customer interest has also come new developments in the Australian financial advisory industry. These developments include the following-: These upcoming trends pose a threat to the business of individual financial advisors in Australia. For example, robo-advisors hold the potential of disrupting the financial planning industry as the ‘Baby Boomers’ in Australia prefer digitized, online solutions over traditional options. Therefore, the way forward for independent financial advisors is adopt a hybrid strategy which will be a strategic mix of both human and online resources. These independent financial advisors currently have a hold on 34% market share, they should capitalize on their leading position to embark upon aggressive acquisitions of automated and online platforms. Talking about the target population, the financial advisors should focus upon the older affluent population who are currently driving the demand in the market. These older HNWs comprise of the largest demographic among advisors’ client bases. However, there are some challenges also that the financial advisors have to overcome. For example, cost still remains the primary barrier to growth in the financial advice market. This is because there is a huge gap between what consumers perceive the cost should be and what the advisors actually charge. The advisors can overcome this challenge by offering limited advice and developing customized advice models as per their needs. In fact, research has revealed that Australians are five times more likely to prefer limited advice at a lower cost as opposed to the traditional models at higher cost. Overall, the growth outlook remains positive for independent financial advisors in Australia. Key Macroeconomic Factors Driving the Australian Financial Advisory Industry The Australian economy has been on a steady progress over the past two decades, completely unaffected by any recession. The economy of the nation was benefited highly by the conducive business environment developed by an effective governance, well-established judiciary system and independent bureaucracy. With such positive macroeconomic environment, Australia became an attractive and dynamic investment destination for both domestic and foreign HNWs. In addition, the fact that Australian is an open market with low non-tariff barriers and fewer limits on foreign investment has also contributed towards making Australia a good investment destination. This has also resulted in parallel growth in the financial advisory and wealth management industry. Here is quick snapshot of the Since the Australian GDP has shown constant growth, the forecasts of Fintech sector are also positive. It is expected to grow at a CAGR of 76.36% and reach an estimated USD 4.2 billion by the end of this decade. The important factors driving this growth is the aggressive low-taxing and generous tax-exemptions given by the government. The government has also extended a twenty percent offset for investments made in the early stage up to a total value of USD 200,000. Also, the increasing purchasing power of Australians between the age groups of 18-34 are also driving consumer demand of financial advisory sector. As of 2015, Australians have, in real terms, larger sums of money to manage and invest. Key Regulatory Trends in the Australian Financial Advisory Market The FOFA became mandatory as of 2014, making it imperative for financial advisors to become efficient and more easily accessible. The Corporations Act 2001 has imposed a single licensing regime for financial sales, advice and dealings in relation to financial products. To know more on coverage, click on the link https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/australian-advisors-clients/7311-93.html Related Reports https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-netherlands-hnw-investors/12105-93.html https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-management-industry-/8488-93.html Contact: Ken Research Ankur Gupta, Head Marketing & Communications query@kenresearch.com www.kenresearch.com Tags: Affluent Population in Australia, Australia Advisory Services Market, Australia financial sector, Australia Robo advisors Market, Mass affluent investors in Australia, retail investment sector Australia, Self-directed investment platforms in Australia