Digital Investment - Czechia

Czechia

Highlights

Total transaction value in the Digital Investment market is projected to reach US$5.33bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 1.92% resulting in a projected total amount of US$5.87bn by 2029.
Neobrokers dominates the market with a projected total transaction value of US$4.20bn 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 Czechia is witnessing significant growth and development, driven by several key factors.

Customer preferences: In recent years, there has been a growing preference among customers in Czechia for digital investment platforms. This shift can be attributed to the convenience and accessibility offered by these platforms, allowing individuals to invest in financial instruments from the comfort of their own homes. Additionally, digital investment platforms provide users with a wide range of investment options, enabling them to diversify their portfolios and potentially achieve higher returns.

Trends in the market: One of the prominent trends in the Digital Investment market in Czechia is the increasing adoption of robo-advisory services. Robo-advisors use algorithms and artificial intelligence to provide personalized investment advice based on individual risk profiles and financial goals. This automated approach appeals to customers who are seeking low-cost investment solutions and prefer a hands-off approach to managing their investments. The rise of robo-advisory services is also driven by the growing awareness and acceptance of technology-driven solutions in the financial sector. Another trend in the market is the emergence of social trading platforms. These platforms enable users to follow and copy the investment strategies of successful traders, allowing inexperienced investors to benefit from the expertise of others. Social trading platforms not only provide a learning opportunity for novice investors but also foster a sense of community and collaboration among users. This trend reflects the increasing desire for social connectivity and knowledge sharing in the investment landscape.

Local special circumstances: Czechia has a well-developed financial sector and a high level of financial literacy among its population. This favorable environment contributes to the growth of the Digital Investment market in the country. Moreover, the relatively small size of the Czech market compared to larger economies encourages competition among digital investment providers, leading to innovation and the introduction of new products and services.

Underlying macroeconomic factors: The stable economic growth and low unemployment rate in Czechia provide a conducive environment for the development of the Digital Investment market. As individuals have more disposable income, they are increasingly seeking investment opportunities to grow their wealth. Additionally, the low-interest rate environment prompts individuals to explore alternative investment options beyond traditional savings accounts, further driving the demand for digital investment platforms. In conclusion, the Digital Investment market in Czechia is experiencing significant growth and development, fueled by customer preferences for convenience and accessibility, the emergence of robo-advisory services and social trading platforms, favorable local circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected to attract more investors and offer a wider range of innovative investment solutions.

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.