Digital Investment - Romania

Romania

Highlights

Total transaction value in the Digital Investment market is projected to reach US$2.24bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 13.02% resulting in a projected total amount of US$4.14bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$2.24bn 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 Romania has been experiencing significant growth in recent years, driven by changing customer preferences and favorable local circumstances.

Customer preferences: Customers in Romania are increasingly turning to digital investment platforms to manage their investments. This shift can be attributed to several factors. Firstly, digital investment platforms offer convenience and accessibility, allowing customers to invest anytime and anywhere. Additionally, these platforms often provide a wide range of investment options, allowing customers to diversify their portfolios easily. Finally, digital investment platforms often offer lower fees compared to traditional investment methods, making them an attractive option for cost-conscious customers.

Trends in the market: One of the key trends in the Digital Investment market in Romania is the rise of robo-advisors. These are automated investment platforms that use algorithms to create and manage investment portfolios. Robo-advisors have gained popularity due to their low fees, ease of use, and ability to provide personalized investment advice. As customers become more comfortable with technology and seek more convenient and cost-effective investment options, the demand for robo-advisors is expected to continue growing. Another trend in the market is the increasing focus on socially responsible investing. Customers in Romania are becoming more conscious of the environmental and social impact of their investments and are seeking investment options that align with their values. Digital investment platforms are responding to this demand by offering socially responsible investment portfolios that prioritize companies with strong environmental, social, and governance (ESG) practices. This trend reflects a broader global shift towards sustainable investing and is likely to continue shaping the Digital Investment market in Romania.

Local special circumstances: Romania has a relatively young population, with a high proportion of tech-savvy individuals. This demographic profile has contributed to the rapid adoption of digital investment platforms in the country. Additionally, the government has implemented policies to promote financial inclusion and digitalization, creating a supportive environment for the growth of the Digital Investment market. These local circumstances have helped fuel the development of the market in Romania.

Underlying macroeconomic factors: The overall economic growth and stability in Romania have also played a role in the development of the Digital Investment market. A growing economy and rising disposable incomes have created a favorable environment for investment. Additionally, low interest rates have made traditional savings accounts less attractive, leading customers to seek higher returns through digital investment platforms. These macroeconomic factors are expected to continue driving the growth of the Digital Investment market in Romania. In conclusion, the Digital Investment market in Romania is experiencing significant growth due to changing customer preferences, including a shift towards digital investment platforms and socially responsible investing. Favorable local circumstances, such as a young and tech-savvy population, along with supportive government policies, have further contributed to the development of the market. Additionally, underlying macroeconomic factors, including economic growth and low interest rates, have created a favorable environment for investment in Romania.

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.