Digital Investment - Argentina

Argentina

Highlights

Total transaction value in the Digital Investment market is projected to reach US$6.08bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 10.93% resulting in a projected total amount of US$10.21bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$4.77bn in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Argentina has been experiencing significant growth in recent years.

Customer preferences: Customers in Argentina are increasingly turning to digital investment platforms as they offer convenience, accessibility, and a wide range of investment options. These platforms allow investors to easily manage their portfolios, track their investments in real-time, and make transactions from anywhere at any time. Additionally, digital investment platforms often provide educational resources and tools to help customers make informed investment decisions.

Trends in the market: One of the key trends in the digital investment market in Argentina is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage portfolios based on customers' risk tolerance and investment goals. Robo-advisors have gained popularity due to their low fees, ease of use, and ability to provide personalized investment advice. This trend is driven by the increasing adoption of technology by customers and the desire for cost-effective investment solutions. Another trend in the market is the growing interest in sustainable investing. Customers in Argentina are becoming more conscious of the environmental and social impact of their investments and are seeking opportunities to align their portfolios with their values. Digital investment platforms are responding to this demand by offering a range of sustainable investment options, such as funds focused on renewable energy, clean technology, and social impact initiatives. This trend is driven by global awareness of environmental and social issues and the desire for responsible investment options.

Local special circumstances: Argentina has a relatively young population with a high level of smartphone penetration and internet usage. This demographic is comfortable with technology and is eager to explore digital solutions for their financial needs. Additionally, the country has a well-developed financial sector with a strong regulatory framework, which provides a conducive environment for the growth of digital investment platforms. These factors have contributed to the rapid adoption of digital investment services in Argentina.

Underlying macroeconomic factors: The digital investment market in Argentina is also influenced by underlying macroeconomic factors. The country has experienced periods of economic volatility and inflation in the past, which has eroded the value of traditional investment options. As a result, investors are seeking alternative investment avenues that can provide higher returns and protect their wealth. Digital investment platforms offer opportunities for diversification and access to global markets, which can help investors mitigate risks and achieve better returns. In conclusion, the Digital Investment market in Argentina is growing due to customer preferences for convenience and accessibility, the rise of robo-advisors, the increasing interest in sustainable investing, the young and tech-savvy population, and the underlying macroeconomic factors. These trends and special circumstances have created a favorable environment for the development of digital investment platforms in Argentina.

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.