Market Insights Financial Wealth Management

Digital Investment - South America

South America

In 2024, the South American Digital Investment market is expected to reach a total transaction value of US$46.87bn.
Looking ahead, the market is projected to experience a steady annual growth rate (CAGR 2024-2027) of 7.74%, resulting in a total transaction value of US$58.61bn by 2027.
The market is largely dominated by Robo-Advisors, which are expected to contribute significantly with a projected total transaction value of US$29.05bn in 2024.
Interestingly, in the United States leads the way with the highest cumulated transaction value, reaching US$1,782,000.00m in 2024.
This showcases the strong presence and influence of the United States in the South American Digital Investment market.
In South America, the digital investment market is rapidly growing, with Brazil leading the way as the region's main hub for fintech startups and innovation.

Key regions: Canada, United Kingdom, United States, United Arab Emirates, Europe

Market

Region

Region comparison

Currency

Analyst Opinion

The Digital Investment market in South America is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in South America are shifting 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 investment advice. This shift is driven by the desire for greater control over investment decisions, as well as the need for more efficient and transparent investment processes. One of the key trends in the digital investment market in South America is the rise of robo-advisors.

These automated investment platforms use algorithms and artificial intelligence to provide personalized investment advice and manage portfolios. Robo-advisors are gaining popularity due to their low fees, ease of use, and ability to cater to a wide range of investors. They offer a convenient and cost-effective alternative to traditional financial advisors, especially for small investors who may not have access to professional financial advice.

Another trend in the market is the increasing adoption of mobile investment apps. South America has a high smartphone penetration rate, and investors are embracing mobile apps as a convenient way to manage their investments on the go. These apps provide real-time market updates, portfolio tracking, and trading capabilities, allowing investors to stay connected to the market and make informed investment decisions anytime, anywhere.

Local special circumstances in South America, such as the growing middle class and increasing financial literacy, are also driving the development of the digital investment market. As more people in the region gain access to financial services and become more knowledgeable about investment opportunities, the demand for digital investment platforms is expected to grow. Additionally, the lack of well-established traditional financial institutions in some countries has created an opportunity for digital investment platforms to fill the gap and provide accessible and inclusive investment services.

Underlying macroeconomic factors, such as economic stability, technological advancement, and regulatory support, are also contributing to the growth of the digital investment market in South America. Stable economic conditions and increasing disposable incomes provide individuals with the financial means to invest, while technological advancements enable the development of sophisticated digital investment platforms. Furthermore, governments in the region are recognizing the potential of the digital investment market and implementing supportive regulations to foster its growth.

In conclusion, the Digital Investment market in South America is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards digital investment platforms, the rise of robo-advisors, the adoption of mobile investment apps, and the growing middle class are all contributing to the growth of the market. With stable economic conditions, technological advancements, and supportive regulations, the digital investment market in South America is poised for further expansion 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.