Micro Investing App Market Size, Share, Growth, and Industry Analysis, By Type (Cloud-based and On-premises), By Application (Business and Individual) and Regional Insights and Forecast to 2032

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MICRO INVESTING APP MARKET REPORT OVERVIEW

The Micro Investing App Market size was valued at approximately USD 1 billion in 2023 and is expected to reach USD 3 billion by 2032, growing at a compound annual growth rate (CAGR) of about 12% from 2023 to 2032

Micro investing is a modern-day investment style that is made possible by easy-to use mobile apps, which have democratized investing by enabling people to invest small sums regularly. The applications that help people to invest come at low cost and are easy and diversified for people. They give the freedom to users to start investing with insignificant numbers of funds and do not put any effort into managing and controlling their portfolios. Individuals can make micro investments by contributing small amounts but at regular intervals and as a result, the investments spread across different assets and sectors providing safety to their investments.

COVID-19 Impact: Rise in retail trading during the pandemic evidencing resilience and adaptive ability under the difficult market situation

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The advent of the pandemic has led to numerous changes in both the stock market processes and the behaviour of investors. The rise in the trading rates among retail investors is demonstrated by the studies that reflect a significant hike in the weekly trading volume due to the ongoing pandemic. This hike underlay a major adjustment in investor behaviour, indicating that people are more prone to the engagement with stock market, especially during hard times. The data reveals the ability and readiness of retail investors towards forex trading as they are moving along with the complexity of risks and challenges of the health crisis.

LATEST TRENDS

"Rapid rise of investing apps among millennial investors is expected to drive the market"

The frenzy of micro investing apps among millennial investors is a trend that has similarly defined the nature of investing over the decade. These user-friendly and easy-to-use platforms stick with Gen Z who are commonly interested in investing but do not always have enough cash to start. As millennials and Gen Z are tech-friendly, they get attracted to the simplicity and pocket-friendliness provided by micro investing apps thus making them part of the stock market with reasonable effort. Another way in which these apps involve millennials in financial literacy is through the age-friendly interfaces and educational resources which most of them consist of. These resources in turn engage millennials in financial learning and cultivate a culture of financial literacy in the tech-savvy demographic. As a result of an increased desire for financial independence and the building of wealth, young investors have been turning to micro investing apps as a means to get started investing that ushers in a new trend of investment culture and lays the foundation for the future direction of the industry.

MICRO INVESTING APP MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud-based and On-premises.

• Cloud-based: Cloud-based solutions are increasingly favoured by businesses for their scalability, smooth performance and location independence. They offer flexibility and efficiency, particularly advantageous for companies focused on growth and accessibility. With cost-effective management of investments and financial transactions, cloud computing meets customer demands and simplifies solutions. This modern technology lowers barriers to entry, providing user-friendly and accessible investment platforms for businesses aiming for operational excellence.

• On-premises: On-premises solutions entail housing components such as data centres and servers onsite, delivering heightened security for sensitive data but necessitating greater maintenance costs and a larger IT department. They excel in safeguarding sensitive information by retaining it in-house, ensuring data protection and infrastructure control. Especially pertinent for industries with stringent data safety needs, on-premises solutions offer cost-effective long-term hardware utilization, albeit with higher maintenance expenses and physical infrastructure demands.

By Application

Based on application the global market can be categorized into Business and Individual.

• Business: Business micro investing apps cater to corporate investment needs, offering tailored features for managing investments, diversifying portfolios and optimizing financial resources. These apps may provide specialized services such as asset management and risk assessment, aiding companies in automating investment processes and making informed decisions. Designed to streamline corporate investment activities, these apps enhance financial efficiency and maximize returns for businesses of all sizes.

• Individual: Individual micro investing apps empower users to invest small amounts in stocks, ETFs and other financial instruments, catering to personal wealth-building goals. With features such as fractional shares and automated investments, these apps are beginner-friendly, appealing to millennials and individuals seeking gradual wealth accumulation. Offering convenience and affordability they facilitate regular saving and portfolio diversification, fostering long-term financial growth for individuals.

DRIVING FACTORS

"Apps help people save for Investment without Any Expertise to Boost the Market Growth"

The global micro investing app market growth transforms this sector of investment using a simplified process as people are enabled to deposit only a small amount of money from their salary each month, without possession of deep knowledge of finance or market inaccuracy awareness. They provide user-friendly interfaces and features that not only are intuitive but also let investors cross the barrier of entry which makes investing available to everyone. These apps do this by automating investment processes and providing simple language, allowing users to manage the complexities in their financial lives easily. They provide educational materials and tools that allow dissecting and interpreting market trends and investment options for every user, particularly for those who prefer plain language.

"Automated options enable one to save and invest small amounts frequently to expand the market"

Along with automation features, micro investing apps can turn the whole process of saving into a hassle-free experience that becomes very simple for people even in the course of their daily activities. These cutting-edge modalities give users the power to allocate tiny sums of money into their investment accounts frequently, without the need to do this manually. Through automation, the savings process becomes simply effortless, so the accumulation of funds dedicated to savings becomes a habit, which strengthens discipline and steadiness when investing. By adopting this relaxed attitude, individuals can eliminate the requirement for being on the lookout all the time or the need to make regular corrections, which would in turn save valuable time and mental energy for other activities.

RESTRAINING FACTORS

"Absence of specific advisories for new investors challenges the market "

A significant limitation of micro investing app is the absence of personalized investment advice which poses a challenge to new investors or others who need customized guidance. Some platforms provide educational materials or generic investment advice, but they can’t present a personalized and optimal investment plan that is based on a particular investor's aims and risk tolerance. This limitation could lead to a situation where users are becoming victims of imbalanced decisions or incompetent in developing the strategic direction of their investments.

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MICRO INVESTING APP MARKET REGIONAL INSIGHTS

"North America to lead the Market due to its Dynamic Infrastructure Engine "

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North American region has a strong financial network and regular financial governance, which is the fundament for the global micro investing app market share. Consisting of the developed financial market and regulators such as the Securities and Exchange Commission (SEC) and Canadian Securities Administrators (CSA) lead to the investor's having a sense of security and trust in the market environment. Besides that, the development of advanced technological infrastructure including the wide penetration of mobile phones also contributes to the acceptance of micro investing apps. These factors support favourable transactions that attract investors behind platforms that aim to serve the specific needs and wants of North American investors. Thus, micro investing stands as a recognized strategy for growing inside the financial markets and amassing wealth while being effortlessly accessible and convenient.

KEY INDUSTRY PLAYERS

"Key industry players are committed to customers providing 24/7 support giving the customers trust to propel the market"

In line with the changing consumer outlook and the growing role of digital platforms, the key industry players in the market enhance their customer support programs by offering 24/7 assistance. This holistic support structure helps the users whenever they need it, by offering them a helping hand to discuss their questions and concerns on the go. With the help of chatbots, calling and designated help teams, users can get individualized support that matches their issues in a timely fashion.

List Of Top Micro Investing App Companies

• Acorns (U.S.)
• SoFi Invest (U.S.)
• Robinhood (U.S.)
• Public.com (U.S.)
• Stash (U.S.)
• Betterment (U.S.)
• M1 Finance (U.S.)
• Greenlight (U.S.)
• Webull (U.S.)
• Wealthsimple (Canada)
• Raiz (Australia)
• Spaceship Voyager (Australia)
• Sharesies (New Zealand)
• CommSec Pocket (Australia)
• eToro (Israel)

INDUSTRIAL DEVELOPMENT

January 2024: SoFi, a virtual personal finance employer, has extended its small business marketplace to connect American entrepreneurs with financing solutions. Through a streamlined seek to enjoy, commercial enterprise proprietors can get entry to SoFi's network of monetary providers, simplifying the technique of locating the proper lender. This initiative pursuits to assist small commercial enterprise proprietors in making informed financial choices quickly, aligning with SoFi's undertaking to empower participants on their path to economic independence.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.