Market Size for Financial services in 2026 [Example]
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1. Total Addressable Market (TAM)
High-level market for your niche.
Your audience is a part of this community.
Money
Annual spendings
$200 billion
People
Annual customer base
1 billion
Calculations
Step-by-step logic
The Total Available Market (TAM) consists of individuals who can benefit from various financial services worldwide, including personal finance, investment, loans, and insurance. Given global trends, itβs reasonable to estimate that about 1 billion people engage with such services, with an average annual spend of around $200 per person on financial services. This includes a variety of demographics and economic levels, as financial services cover a wide range of needs and solutions.
2. Serviceable Addressable Market (SAM)
The portion of your TAM that you can realistically reach.
These people are your potential customers.
Money
Annual spendings
$40 billion
People
Annual customer base
200 million
Calculations
Step-by-step logic
The Serviceable Addressable Market (SAM) is the portion of TAM that we can realistically target with our financial services. If we consider that our focus will be on individuals with a stable income and a willingness to seek professional financial advice, this narrows our audience down to about 200 million potential customers. They are projected to spend an average of $200 per year on financial services, leading to a more attainable SAM of $40 billion.
3. Serviceable Obtainable Market (SOM)
The portion of SAM that you can realistically capture.
These people are your customers.
Money
Annual spendings
$4 million
People
Annual customer base
20,000
Calculations
Step-by-step logic
The Serviceable Obtainable Market (SOM) accounts for the customers we can realistically capture in the first year. Assuming we can reach 0.01% of our SAM through targeted marketing and effective outreach, this results in approximately 20,000 customers. At an average spend of $200 per customer annually, our expected revenue for the first year would be around $4 million. This projection considers a conservative market penetration that is realistic for a new financial services business.
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