Digital Investment - Philippines

Philippines

Highlights

Total transaction value in the Digital Investment market is projected to reach US$3.67bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 6.61% resulting in a projected total amount of US$5.06bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$3.67bn 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 Philippines is experiencing significant growth and development.

Customer preferences: Customers in Philippines are increasingly turning to digital investment platforms due to their convenience and accessibility. With the rise of smartphones and internet penetration, more Filipinos have access to online investment platforms, allowing them to easily invest and manage their portfolios. Additionally, digital investment platforms offer a wide range of investment options, providing customers with the flexibility to invest in various asset classes such as stocks, bonds, and mutual funds. This allows customers to diversify their investment portfolios and potentially earn higher returns.

Trends in the market: One of the key trends in the Digital Investment market in Philippines is the growing popularity of robo-advisors. Robo-advisors are automated investment platforms that use algorithms to create and manage investment portfolios based on customers' risk profiles and investment goals. These platforms provide customers with personalized investment advice and recommendations, making investing more accessible to a wider range of individuals. The increasing adoption of robo-advisors is driven by the desire for low-cost investment solutions and the convenience of automated portfolio management. Another trend in the market is the emergence of social trading platforms. Social trading platforms allow customers to follow and copy the trades of successful investors, enabling them to learn from experienced traders and potentially earn higher returns. These platforms also provide a social aspect to investing, allowing customers to connect with other investors, share investment ideas, and discuss market trends. The rise of social trading platforms is driven by the desire for a collaborative and interactive investing experience.

Local special circumstances: The Digital Investment market in Philippines is also influenced by local special circumstances. One of these circumstances is the high remittance inflows from overseas Filipino workers. Many Filipinos working abroad send money back to their families in Philippines, and some of these remittances are invested through digital investment platforms. This has contributed to the growth of the market as more Filipinos seek to invest their remittances and grow their wealth.

Underlying macroeconomic factors: Several underlying macroeconomic factors are driving the development of the Digital Investment market in Philippines. The country has a young and tech-savvy population, with a high smartphone penetration rate and increasing internet access. This provides a favorable environment for the growth of digital investment platforms. Additionally, the government has been implementing initiatives to promote financial inclusion and digitalization of the financial sector, which has contributed to the growth of the digital investment market. The stable economic growth and favorable investment climate in Philippines also attract both local and foreign investors, further boosting the demand for digital investment platforms. Overall, the Digital Investment market in Philippines is experiencing rapid growth and development. Customer preferences for convenience and accessibility, along with the emergence of robo-advisors and social trading platforms, are driving the market trends. Local special circumstances such as remittance inflows and underlying macroeconomic factors including a young and tech-savvy population and government initiatives are further fueling the growth of the market.

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.