Digital Investment - Panama

Panama

Highlights

Total transaction value in the Digital Investment market is projected to reach US$579.10m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 8.96% resulting in a projected total amount of US$889.20m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$579.10m 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 Panama is experiencing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Panamanian investors are increasingly turning to digital investment platforms due to the convenience and accessibility they offer. With the rise of smartphones and internet penetration, investors can now easily access and manage their investment portfolios from anywhere at any time. This flexibility is particularly appealing to the younger generation of investors who are tech-savvy and prefer digital solutions over traditional investment methods. Additionally, digital investment platforms often provide a wide range of investment options, allowing investors to diversify their portfolios and choose investments that align with their financial goals and risk tolerance.

Trends in the market: One of the key trends in the digital investment market in Panama is the growing popularity of robo-advisors. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of investors. Robo-advisors are gaining traction in Panama due to their low fees, simplicity, and ability to cater to individual investor preferences. This trend is expected to continue as more investors recognize the benefits of automated investment solutions. Another trend in the market is the emergence of crowdfunding platforms. These platforms allow individuals to invest in startups and other ventures, providing them with opportunities to support local businesses and potentially earn high returns. Crowdfunding has gained momentum in Panama as it offers an alternative investment avenue for individuals who may not have access to traditional investment opportunities or who prefer to invest in local projects.

Local special circumstances: Panama's strategic location as a gateway between North and South America has attracted foreign investors and multinational companies, leading to a growing economy and increased investment opportunities. This has contributed to the development of the digital investment market in the country, as both local and foreign investors seek efficient and accessible ways to invest their capital. Furthermore, Panama has a favorable regulatory environment for digital investment platforms, with regulations in place to protect investors and ensure the integrity of the market. This regulatory framework provides investors with confidence and encourages the growth of the digital investment sector.

Underlying macroeconomic factors: Panama's strong economic growth and stability have created a favorable environment for investment. The country has experienced consistent GDP growth over the years, driven by sectors such as finance, logistics, and tourism. This economic stability, coupled with a growing middle class and increasing disposable income, has created a demand for investment opportunities, leading to the development of the digital investment market. Additionally, Panama's government has implemented initiatives to promote financial inclusion and digitalization, further supporting the growth of the digital investment market. These initiatives aim to increase access to financial services and encourage individuals to participate in the formal economy, including investing through digital platforms. In conclusion, the digital investment market in Panama is expanding due to customer preferences for convenience and accessibility, trends such as the rise of robo-advisors and crowdfunding platforms, local special circumstances such as Panama's strategic location and favorable regulatory environment, and underlying macroeconomic factors including strong economic growth and government initiatives. As these factors continue to drive the development of the digital investment market, Panama is poised to become a hub for digital investing in the region.

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.