Digital Investment - Chile

Chile

Highlights

Total transaction value in the Digital Investment market is projected to reach US$2.98bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.99% resulting in a projected total amount of US$3.63bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$2.12bn 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 Chile is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms, and there are several trends driving this market. Additionally, local special circumstances and underlying macroeconomic factors are contributing to the growth of the digital investment market in Chile.

Customer preferences: Customers in Chile are increasingly turning to digital investment platforms for their investment needs. This shift in preference can be attributed to several factors. Firstly, digital investment platforms offer convenience and accessibility. Investors can easily access their investment accounts and make transactions from anywhere, at any time. This is particularly appealing to the tech-savvy younger generation who are accustomed to conducting transactions online. Secondly, digital investment platforms provide a wide range of investment options. Investors can choose from a variety of asset classes, including stocks, bonds, and mutual funds. This allows them to diversify their portfolios and potentially increase their returns. Moreover, digital investment platforms often provide educational resources and tools to help investors make informed decisions.

Trends in the market: One of the key trends in the digital investment market in Chile is the rise of robo-advisors. These are automated investment platforms that use algorithms to create and manage investment portfolios. Robo-advisors offer low fees and personalized investment advice based on an investor's risk tolerance and financial goals. This trend is particularly attractive to younger investors who are comfortable with technology and prefer a hands-off approach to investing. Another trend in the market is the integration of social media and investment platforms. Some digital investment platforms in Chile are incorporating social media features, allowing investors to share their investment strategies and insights with others. This creates a sense of community and fosters engagement among investors. Additionally, social media integration provides investors with real-time market updates and news, enabling them to make more informed investment decisions.

Local special circumstances: Chile has a well-developed financial sector and a growing middle class. This provides a favorable environment for the digital investment market to thrive. Moreover, the government has implemented policies to promote financial inclusion and encourage investment. This has led to an increase in the number of individuals seeking investment opportunities, further driving the growth of the digital investment market.

Underlying macroeconomic factors: Chile has a stable economy and a strong regulatory framework, which instills confidence in investors. Additionally, the country has a high internet penetration rate and a tech-savvy population, making it conducive for the growth of digital investment platforms. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital services, including digital investment platforms, as people seek alternative ways to manage their finances. In conclusion, the digital investment market in Chile is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms due to their convenience, accessibility, and wide range of investment options. The rise of robo-advisors and the integration of social media are key trends in the market. Local special circumstances, such as a well-developed financial sector and government policies promoting financial inclusion, contribute to the growth of the digital investment market. Additionally, underlying macroeconomic factors, such as a stable economy and high internet penetration rate, further support the development of the market.

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.