Digital Investment - Russia

Russia

Highlights

Total transaction value in the Digital Investment market is projected to reach US$11.73bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 5.79% resulting in a projected total amount of US$15.54bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$11.40bn 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 Russia is experiencing significant growth and development.

Customer preferences: Russian investors are increasingly turning to digital investment platforms to manage their portfolios. This shift is driven by several factors, including convenience, accessibility, and the desire for greater control over investment decisions. Digital investment platforms offer users the ability to easily monitor and manage their investments, access a wide range of investment options, and receive real-time updates on market trends. Additionally, these platforms often provide educational resources and tools to help investors make informed decisions.

Trends in the market: One of the key trends in the Russian Digital Investment market is the rise of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on an individual's risk tolerance and financial goals. Robo-advisors have gained popularity in Russia due to their low fees, ease of use, and ability to provide personalized investment recommendations. Another trend in the market is the increasing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. Russian investors are attracted to peer-to-peer lending platforms because they offer higher interest rates compared to traditional savings accounts, and provide an opportunity to diversify their investment portfolios.

Local special circumstances: The Russian Digital Investment market is also influenced by local special circumstances. For example, the country has a large population of tech-savvy individuals who are comfortable using digital platforms for various purposes, including financial transactions. This tech-savvy population has contributed to the rapid adoption of digital investment platforms in Russia. Furthermore, the Russian government has introduced several initiatives to promote the development of the digital economy, including the creation of special economic zones and the implementation of digitalization programs. These initiatives have created a favorable environment for the growth of the Digital Investment market in Russia.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the Digital Investment market in Russia. Firstly, the country has a high internet penetration rate, with a large portion of the population having access to the internet. This widespread internet access has facilitated the growth of digital investment platforms, as investors can easily access these platforms from their smartphones or computers. Secondly, the Russian economy has been experiencing steady economic growth in recent years. This growth has resulted in increased disposable income for individuals, who are now looking for investment opportunities to grow their wealth. Digital investment platforms provide a convenient and accessible way for individuals to invest their money and potentially earn higher returns. In conclusion, the Digital Investment market in Russia is experiencing significant growth and development. This growth is driven by customer preferences for convenience and control, as well as the rise of robo-advisors and peer-to-peer lending platforms. Local special circumstances, such as a tech-savvy population and government initiatives, further contribute to the growth of the market. Underlying macroeconomic factors, including high internet penetration and steady economic growth, also play a role in the development of the Digital Investment market in Russia.

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.