Digital Investment - Mexico

Mexico

Highlights

Total transaction value in the Digital Investment market is projected to reach US$18.43bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 5.06% resulting in a projected total amount of US$23.59bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$12.05bn 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 Mexico is experiencing significant growth and development as more and more individuals and businesses are embracing digital solutions for their investment needs.

Customer preferences: Customers in Mexico are increasingly looking for convenient and accessible investment options. They are drawn to digital investment platforms that offer user-friendly interfaces, personalized investment advice, and a wide range of investment products. In a country where traditional banking services can be cumbersome and time-consuming, digital investment platforms provide a convenient and efficient way for individuals to manage their investments.

Trends in the market: One of the key trends in the digital investment market in Mexico is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios for customers. Robo-advisors offer low-cost investment options, making them attractive to cost-conscious investors. They also provide personalized investment advice based on the customer's risk tolerance and investment goals. Another trend in the market is the increasing popularity of crowdfunding platforms. These platforms allow individuals to invest in startups and small businesses, giving them access to investment opportunities that were previously only available to institutional investors. Crowdfunding platforms provide a way for individuals to diversify their investment portfolios and support local businesses.

Local special circumstances: Mexico has a large unbanked population, with many individuals lacking access to traditional banking services. This presents a unique opportunity for digital investment platforms to reach a large untapped market. By offering mobile-based investment solutions, these platforms can provide financial services to individuals who have traditionally been excluded from the formal banking system.

Underlying macroeconomic factors: Mexico has a growing middle class and a young population, both of which contribute to the growth of the digital investment market. As more individuals enter the middle class and gain disposable income, they are looking for ways to grow their wealth and secure their financial future. The younger generation, in particular, is comfortable with technology and more likely to embrace digital solutions for their investment needs. Additionally, the Mexican government has been implementing reforms to promote financial inclusion and digital innovation. These reforms, along with advancements in technology and infrastructure, have created an enabling environment for the growth of the digital investment market. In conclusion, the Digital Investment market in Mexico is experiencing significant growth and development due to customer preferences for convenient and accessible investment options, trends such as the rise of robo-advisors and crowdfunding platforms, local special circumstances such as a large unbanked population, and underlying macroeconomic factors such as a growing middle class and government reforms. As more individuals and businesses in Mexico embrace digital solutions for their investment needs, the digital investment market is expected to continue to thrive in the coming years.

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.