Market Insights Financial Wealth Management Digital Investment

Neobrokers - South Africa

South Africa

The Neobrokers market in South Africa is projected to generate a revenue of ZAR US$46.66m in 2024.
This is expected to grow at an annual growth rate (CAGR 2024-2027) of 4.58%, resulting in a projected total revenue of ZAR US$53.37m by 2027.
On average, each user in the Neobrokers market is expected to contribute ZAR US$7.94 in revenue in 2024.
When compared globally, it is observed that the highest revenue in the Neobrokers market is achieved by another country (0) in 2024.
In terms of assets under management (AUM), the Neobrokers market in South Africa is projected to reach ZAR US$4,917.00m in 2024.
The AUM is expected to grow at an annual growth rate (CAGR 2024-2027) of 4.59%, resulting in a projected total AUM of ZAR US$5,625.00m by 2027.
On average, each user in the Neobrokers market is expected to have ZAR US$837.20 in AUM in 2024.
When compared globally, it is observed that the highest AUM in the Neobrokers market is achieved by United States, with an AUM of US$323,100.00m in 2024.
In terms of user base, the number of users in the Neobrokers market in South Africa is expected to reach 6.63m users by 2027.
The user penetration rate is projected to be 9.4% in 2024 and is expected to increase to 10.3% by 2027.
South Africa's neobroker market is witnessing a surge in popularity among tech-savvy millennials seeking convenient and accessible investment opportunities.

Key regions: Canada, United Kingdom, United States, Europe, Switzerland

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Methodology

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.