Record interest rates, confined consumers and a wave of new wealth programs will move Europe from a region of savers to a continent of investors.
The advent of commercial applications and the advent of wealth control purposes through neobanks like Revolut in the UK have made investing a core business. Note.
European startups in the sector, which from business applications to robo-advisors, have raised a record $4 billion in venture capital this year, according to Dealroom’s knowledge.
“If you save money, you necessarily lose money,” he added. So, when you look at the number of savings accounts in Europe, it’s, in fact, the length of the market that can be accessed. “
In the UK, at least 3. 2 million more people have downloaded a wealth app since the start of the COVID-19 pandemic in March 2020, according to the knowledge of App Radar, an analytics platform.
Freetrade, a UK inventory exchange app founded in 2018, had around 50,000 users at the start of 2020; by March 2021, that figure had risen to 600,000; now, according to the beginning, that number exceeds one million.
The German Commercial Republic also said it had grown from 150,000 users in 2020 to more than a million, which helped it secure a new investment with a valuation of $5. 3 billion in May.
The European crop of commercial applications would likely be willing to distance itself from the regulatory issues facing its American counterparts, such as Robinhood. GameStop, in 2020 and threatens massive losses.
Business applications in Europe are regulated across jurisdiction, and top corporations provide some form of disclaimer in relation to volatile options, but a tension persists between the business applications’ interest in educating, or even preventing, users from making difficult trades and their interest in maintaining their user base.
Investors and founders of European business apps said the growing interest in retail investing predates the pandemic.
Established brands, such as Hargreaves Lansdown, have also noticed an increase in the number of younger consumers due to the pandemic.
The variety of stocks remains more of a niche in Europe than in the United States. In Europe, overall trade through retail investors hovers around 5%, according to inventory exchange Euronext, while App Radar calculated that 12% of UK adults now use an investment app.
“While American families invest nearly 50% of their savings in the inventory market, less than 20% of the savings of German, French, Italian and Spanish customers are invested in inventories,” said Luca Bocchio, Accel’s spouse and investor in The Mercantile Republic.
But, he added, those platforms were turning the way other people viewed their savings: “It’s turning the European landscape of non-public finance, with long-term investment and saving. “