Market Insights Financial Wealth Management

Digital Investment - Canada

Canada

Total transaction value in the Digital Investment market is projected to reach €25,530.00m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.55% resulting in a projected total amount of €30,400.00m by 2029.
Neobrokers dominates the market with a projected total transaction value of €12,780.00m in 2024.
The highest cumulated transaction value is reached in the United States (€1,652,000.00m in 2024).

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

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Región

Comparación de regiones

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Analyst Opinion

The Digital Investment market in Canada has been experiencing significant growth in recent years, driven by changing customer preferences, technological advancements, and favorable local circumstances. Customer preferences in Canada have shifted towards digital investment platforms due to their convenience, accessibility, and cost-effectiveness.

Investors are increasingly seeking online platforms that provide a wide range of investment options, real-time market data, and personalized advice. Additionally, the younger generation, which represents a significant portion of the population, is more tech-savvy and comfortable with digital platforms, further driving the demand for digital investment services. In terms of market trends, robo-advisors have emerged as a popular choice among Canadian investors.

These automated investment platforms use algorithms to create and manage investment portfolios based on individual risk tolerance and financial goals. Robo-advisors offer lower fees compared to traditional investment advisors, making them an attractive option for cost-conscious investors. The rise of robo-advisors has also led to increased competition among financial institutions, prompting them to improve their digital investment offerings and provide a seamless user experience.

Another trend in the Canadian Digital Investment market is the increasing popularity of socially responsible investing (SRI). Investors are now placing greater emphasis on environmental, social, and governance (ESG) factors when making investment decisions. This trend is driven by a growing awareness of sustainability issues and a desire to align investments with personal values.

As a result, digital investment platforms in Canada are incorporating ESG screening tools and offering SRI-focused investment options to cater to this demand. In addition to customer preferences and market trends, there are also local special circumstances that contribute to the development of the Digital Investment market in Canada. The country has a well-developed financial sector, with a strong regulatory framework and a stable economy.

These factors instill confidence in investors and attract both domestic and foreign players to the market. Furthermore, Canada has a high smartphone penetration rate and widespread internet access, providing a solid foundation for the growth of digital investment platforms. Underlying macroeconomic factors also play a role in the development of the Digital Investment market in Canada.

The low interest rate environment has pushed investors to seek alternative investment options to generate higher returns. Additionally, the COVID-19 pandemic has accelerated the adoption of digital technologies across various industries, including finance. As a result, more Canadians are turning to digital investment platforms as they adapt to remote work and embrace online services.

In conclusion, the Digital Investment market in Canada is experiencing growth due to changing customer preferences, market trends such as the rise of robo-advisors and socially responsible investing, favorable local circumstances, and underlying macroeconomic factors. As digital investment platforms continue to innovate and provide a seamless user experience, the market is expected to further expand in the coming years.

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.