Digital Investment - New Zealand

New Zealand

Highlights

Total transaction value in the Digital Investment market is projected to reach US$3.97bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 2.47% resulting in a projected total amount of US$4.49bn by 2029.
Neobrokers dominates the market with a projected total transaction value of US$2.56bn 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 New Zealand is experiencing significant growth and development.

Customer preferences: Customers in New Zealand 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, allowing customers to manage their investments anytime and anywhere. Secondly, these platforms often provide a wide range of investment options, allowing customers to diversify their portfolios easily. Lastly, digital investment platforms often have lower fees compared to traditional investment options, making them more attractive to cost-conscious customers.

Trends in the market: One of the key trends in the digital investment market in New Zealand is the rise of robo-advisors. These are automated investment platforms that use algorithms to create and manage investment portfolios. Robo-advisors are gaining popularity in New Zealand due to their low fees and ease of use. They appeal to customers who are looking for a hands-off approach to investing and prefer to rely on technology for investment decisions. Another trend in the market is the increasing adoption of socially responsible investing (SRI). Customers in New Zealand are becoming more conscious about the environmental, social, and governance (ESG) factors of their investments. They are seeking out investment options that align with their values and support sustainable and ethical practices. Digital investment platforms are responding to this demand by offering SRI options and integrating ESG factors into their investment strategies.

Local special circumstances: New Zealand has a relatively small population, which presents both opportunities and challenges for the digital investment market. On one hand, the small population allows digital investment platforms to target a niche market and tailor their services to the specific needs and preferences of New Zealand customers. On the other hand, the small population also means that the market size is limited, which may pose challenges for platforms seeking to achieve scale and profitability.

Underlying macroeconomic factors: The development of the digital investment market in New Zealand is also influenced by underlying macroeconomic factors. The country has a stable economy with a strong financial services sector, which provides a conducive environment for the growth of digital investment platforms. Additionally, the low interest rate environment in New Zealand has led to increased interest in alternative investment options, such as digital investments. Customers are seeking higher returns on their investments and are willing to explore new avenues to achieve their financial goals. In conclusion, the Digital Investment market in New Zealand is witnessing significant growth and development. Customer preferences for convenience, accessibility, and lower fees are driving the adoption of digital investment platforms. The rise of robo-advisors and the increasing demand for socially responsible investing are key trends in the market. The small population of New Zealand presents both opportunities and challenges for digital investment platforms. Finally, underlying macroeconomic factors, such as a stable economy and low interest rates, are contributing to the growth of the digital investment market in New Zealand.

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.