Market Trends of Europe E-Brokerages Industry
Growing Retail Investors in The Region is Driving The E-Brokerages Market
Retail investors look for opportunities to trade or invest using platforms such as e-brokerage that are easily accessible to private individuals. Since 2020, there was a notable increase in the number of retail investors in Europe. The work-from-home culture during the pandemic gave people more time to research how to begin investing. Additionally, some people sought to build a financial safety net in case the worst happened because nobody knew how the job market would be after lockdowns.
Retail investors now have greater access to European markets than ever, with the custom e-trading platforms developed by traditional and online brokers to draw in a new wave of retail investors. Financial barriers to investing are lower than ever, accounts are simple to open and administer, and data is much more readily available with streamlined user interfaces and quicker connection speeds. Retail brokers in Europe report that between 2020 and 2021, the number of clients dramatically grew. For instance, the UK-based online trading platform Freetrade, which debuted in the latter part of 2018, added almost 160,000 new users in January 2021, reaching the million-user mark in October 2021.
High Online Banking Penetration in Europe is Fueling the E-Brokerage Market
More than half of adult Europeans use Internet banking. This share is constantly increasing and has more than doubled since 2007 when it stood at around 25%. Internet banking is particularly popular among 25 to 34-year-olds, with more than two-thirds using this facility. The use of Internet banking tends to increase in line with the user's education level. While only 24% of those with low education use e-banking, 77% of those with high education use this service. In the European region, the share of people using digital banking services increased from 36 to 61 percent between 2010 and 2021. In 2021, it was found that 96 percent of the Norwegian population accessed online banking sites, making Norway the country with the strongest Internet banking penetration in Europe, followed by Denmark and Iceland. Online banking is becoming one of the most popular payment methods in Europe, allowing customers of a bank or other financial institution to develop a wide range of financial transactions through their websites. Over time, Europeans' confidence in this electronic payment system has increased.
