Market Insights Financial Wealth Management

Digital Investment - Brazil

Brazil

Total transaction value in the Digital Investment market is projected to reach €25,340.00m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.28% resulting in a projected total amount of €29,780.00m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of €13,470.00m 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

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Digital Investment market in Brazil is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms, driven by convenience, accessibility, and the desire for higher returns. As a result, there is a growing demand for online investment services and platforms in Brazil.

Customer preferences: Customers in Brazil are increasingly turning to digital investment platforms for their investment needs. These platforms offer convenience and accessibility, allowing investors to manage their portfolios anytime and anywhere. With the rise of smartphones and internet penetration, more people have access to these platforms, making it easier for them to invest.

Trends in the market: One of the key trends in the digital investment market in Brazil is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on individual risk profiles and investment goals. Robo-advisors offer lower fees compared to traditional investment advisors, making them attractive to cost-conscious investors. Another trend in the market is the increasing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. This allows individuals and small businesses to access funding that may not have been available to them through traditional channels. Peer-to-peer lending platforms also offer attractive returns for investors, further driving their popularity.

Local special circumstances: Brazil has a large population of tech-savvy individuals, making it an ideal market for digital investment platforms. Additionally, the country has a relatively low level of financial inclusion, with a significant portion of the population unbanked or underbanked. Digital investment platforms provide an opportunity for these individuals to participate in the financial markets and grow their wealth.

Underlying macroeconomic factors: Brazil has been experiencing a period of economic recovery, with improving GDP growth and declining inflation rates. This has created a more favorable environment for investments, leading to increased interest in digital investment platforms. Additionally, the country has a relatively high interest rate environment, which makes investing in financial assets more attractive compared to traditional savings accounts. In conclusion, the digital investment market in Brazil is witnessing significant growth and development. Customer preferences are shifting towards digital platforms, driven by convenience, accessibility, and the desire for higher returns. The rise of robo-advisors and peer-to-peer lending platforms are key trends in the market. Brazil's large population of tech-savvy individuals and low level of financial inclusion contribute to the growth of the digital investment market. The country's improving macroeconomic factors, such as GDP growth and declining inflation rates, also create a favorable environment for investments.

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.