6 barriers to overcoming cautious savings habits
The savings habits of European households, particularly in France, are characterised by a preference for safe and liquid investments such as bank deposits and regulated savings accounts. This tendency, influenced by cultural differences, market structures, and fiscal policies, persists despite the erosion of value due to high inflation.
Several barriers appear to contribute to this behaviour:
- Lack of financial and investment knowledge, with limited education on these topics in schools
- Complex and volatile fiscal and regulatory rules
- Difficulty in understanding investment risks
- Industries burdened with jargon and acronyms that discourage engagement
- Communication with clients is sometimes overly complexified by regulatory obligations
- Diversity and complexity of financial products and investment solutions.
Fostering more dynamic investment behaviours through technology
How can we overcome these barriers and encourage more dynamic investment choices?
To address these challenges, technology increasingly offers solutions to support and reassure potential investors:
- Educational modules in various formats (videos, gamification, podcasts, academic content) to enhance financial literacy.
- Simple and continuous interactions on finance and investment topics through online assistants, often powered by AI.
- Real-time financial simulations and projections to help understand risks, compare solutions, and form convictions.
- Optimal selection of investment solutions tailored to the client's specific needs, taking into account their personal situation and goals, with the support of technology.
"Tech opens very powerful ways to boost financial education and simplify investment decisions among European retail clients. Let's use it to our advantage!"