Digital Investment - Cyprus

Cyprus

Highlights

Total transaction value in the Digital Investment market is projected to reach US$177.30m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.80% resulting in a projected total amount of US$246.30m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$177.30m 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 Cyprus has been experiencing significant growth and development in recent years.

Customer preferences: In line with global trends, customers in Cyprus are increasingly turning to digital investment platforms to manage their investments. This shift is driven by several factors. Firstly, digital investment platforms offer convenience and accessibility, allowing customers to access their investment portfolios anytime and anywhere. Additionally, these platforms often provide a wide range of investment options, allowing customers to diversify their portfolios and potentially achieve higher returns. Furthermore, digital investment platforms often come with lower fees and minimum investment requirements compared to traditional investment methods, making them more attractive to a wider range of customers.

Trends in the market: One notable trend in the digital investment market in Cyprus is the rise of robo-advisors. These platforms use algorithms and artificial intelligence to provide automated investment advice and portfolio management services. Robo-advisors have gained popularity among customers who prefer a hands-off approach to investing or who may not have the knowledge or time to actively manage their investments. The use of robo-advisors in Cyprus is expected to continue to grow as more customers become aware of the benefits they offer. Another trend in the market is the increasing popularity of socially responsible investing (SRI). Customers in Cyprus are becoming more conscious of the social and environmental impact of their investments and are seeking investment options that align with their values. As a result, digital investment platforms are offering a wider range of SRI options, allowing customers to invest in companies that prioritize sustainability and corporate social responsibility.

Local special circumstances: Cyprus has a well-developed financial services sector and is known for its favorable tax environment. These factors have contributed to the growth of the digital investment market in the country. Additionally, the relatively small size of the market has allowed digital investment platforms to quickly establish a presence and gain market share. The regulatory environment in Cyprus is also supportive of digital investment platforms, providing a framework that ensures investor protection while allowing for innovation and competition in the market.

Underlying macroeconomic factors: The growth of the digital investment market in Cyprus is also influenced by underlying macroeconomic factors. The country has a stable and growing economy, with a strong financial services sector. Additionally, Cyprus has a high level of internet penetration and smartphone usage, providing a solid foundation for the adoption of digital investment platforms. The government has also been proactive in promoting digital innovation and entrepreneurship, creating an environment conducive to the growth of the digital investment market. In conclusion, the Digital Investment market in Cyprus is experiencing significant growth and development, driven by customer preferences for convenience, accessibility, and lower fees. The rise of robo-advisors and the increasing popularity of socially responsible investing are notable trends in the market. The local special circumstances, including a favorable tax environment and supportive regulatory framework, have contributed to the growth of the market. The underlying macroeconomic factors, such as a stable economy and high internet penetration, further support the development of the digital investment market in Cyprus.

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.