Market Insights Financial Wealth Management

Digital Investment - Asia

Asia

Total transaction value in the Digital Investment market is projected to reach €424.50bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.46% resulting in a projected total amount of €503.30bn by 2029.
Neobrokers dominates the market with a projected total transaction value of €329.30bn in 2024.
The highest cumulated transaction value is reached in the United States (€1,635,000.00m in 2024).

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

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Analyst Opinion

The Digital Investment market in Asia is experiencing significant growth and development in recent years.

Customer preferences: Asian customers are increasingly turning to digital investment platforms for their investment needs. This shift in customer preferences can be attributed to several factors. Firstly, the convenience and accessibility offered by digital investment platforms make it easier for customers to invest and manage their portfolios. With just a few clicks, customers can access a wide range of investment products and services, eliminating the need for traditional brick-and-mortar financial institutions. Secondly, digital investment platforms often offer lower fees and minimum investment requirements compared to traditional investment options, making them more attractive to cost-conscious customers. Lastly, the younger generation in Asia, who are more tech-savvy and comfortable with digital platforms, are driving the demand for digital investment services.

Trends in the market: One of the key trends in the digital investment market in Asia is the rise of robo-advisors. Robo-advisors are automated investment platforms that use algorithms to provide investment advice and manage portfolios. These platforms have gained popularity in Asia due to their low-cost nature and ease of use. They appeal to both novice investors who are looking for guidance and experienced investors who want to automate their investment strategies. As a result, many traditional financial institutions in Asia have started to offer their own robo-advisor services or partner with existing robo-advisor platforms to cater to this growing demand. Another trend in the digital investment market in Asia is the increasing adoption of mobile investment apps. With the widespread use of smartphones in Asia, mobile investment apps have become a popular choice for customers to manage their investments on the go. These apps provide real-time market data, investment tools, and the ability to execute trades, making it convenient for customers to stay updated and make investment decisions anytime, anywhere.

Local special circumstances: Each country in Asia has its own unique circumstances that contribute to the development of the digital investment market. For example, in countries like China and India, where the population is large and the middle class is growing, there is a significant untapped market for digital investment services. The rising income levels and increasing financial literacy in these countries are driving the demand for digital investment platforms. In Southeast Asian countries like Singapore and Malaysia, the government has been actively promoting the development of fintech and digital finance. This has created a favorable regulatory environment and supportive infrastructure for digital investment platforms to thrive.

Underlying macroeconomic factors: The strong economic growth in Asia, coupled with the increasing wealth and disposable income of the population, has created a conducive environment for the development of the digital investment market. As more individuals seek to grow their wealth and secure their financial future, the demand for digital investment services is expected to continue to rise. Furthermore, the low interest rate environment in many Asian countries has made traditional savings and fixed deposit accounts less attractive. This has prompted individuals to explore alternative investment options, such as digital investment platforms, to generate higher returns. In conclusion, the digital investment market in Asia is experiencing rapid growth and development due to changing customer preferences, emerging trends such as robo-advisors and mobile investment apps, local special circumstances in each country, and underlying macroeconomic factors. As technology continues to advance and customer demand for digital investment services increases, the digital investment market in Asia is expected to continue its upward trajectory.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech 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 (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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 impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.