Digital Investment - Pakistan

Pakistan

Highlights

Total transaction value in the Digital Investment market is projected to reach US$4.48bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 4.86% resulting in a projected total amount of US$5.68bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$4.03bn 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 Pakistan is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Pakistan are increasingly turning to digital investment platforms as they seek convenience, accessibility, and cost-effectiveness. The younger generation, in particular, is embracing digital investment platforms as they offer user-friendly interfaces, real-time access to market information, and the ability to invest with smaller amounts of capital. Additionally, the COVID-19 pandemic has accelerated the adoption of digital investment platforms, as individuals look for alternative ways to grow their wealth in a volatile economic environment.

Trends in the market: One of the key trends in the digital investment market in Pakistan is the rise of robo-advisory services. These services use algorithms and artificial intelligence to provide personalized investment advice and portfolio management. Robo-advisory platforms are gaining popularity due to their low fees, automated investment strategies, and ability to cater to individual risk profiles. This trend is expected to continue as more investors seek efficient and cost-effective investment solutions. Another trend in the market is the increasing participation of retail investors in the stock market. The availability of digital investment platforms has democratized access to the stock market, allowing individuals to invest directly in equities. This has led to a surge in retail trading activity, with individuals taking advantage of market volatility and seeking higher returns. The rise of social media and online investment communities has also contributed to this trend, as individuals share investment tips and strategies, further fueling retail investor participation.

Local special circumstances: Pakistan has a large population of tech-savvy individuals who are comfortable using digital platforms for various purposes, including financial transactions. The widespread adoption of mobile phones and internet connectivity has created a favorable environment for the growth of digital investment platforms. Furthermore, the government of Pakistan has introduced regulatory reforms to promote digital financial services and encourage financial inclusion. These reforms have facilitated the development of digital investment platforms and increased investor confidence in the market.

Underlying macroeconomic factors: Pakistan's economy has been experiencing steady growth in recent years, supported by government initiatives to attract foreign investment and promote economic development. This has created a favorable investment climate and increased investor confidence in the country. Additionally, low-interest rates and inflation have made traditional savings and investment options less attractive, leading individuals to explore alternative investment avenues such as digital investment platforms. In conclusion, the Digital Investment market in Pakistan is witnessing significant growth and development, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors. The rise of robo-advisory services, increasing participation of retail investors in the stock market, a tech-savvy population, government reforms, and a favorable economic environment are all contributing to the growth of the digital investment market in Pakistan.

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.