“We need to channel household savings into long-term savings, for the benefit of both individuals and European businesses.”
“European households have a saving rate of around 15%, which is high compared to their US counterparts, who save less than 5%. However, a significantly larger share of these savings is held in bank deposits than in the United States, representing around 38% of financial assets versus 12% in the US.
Although savings are plentiful in Europe, too little is invested in productive assets, even as European companies lack the financial resources they need to grow and take on their peers when it comes to competitiveness and innovation. The Draghi report,(1) which analyses the causes of Europe’s lack of competitiveness, estimates that the EU has investment needs of €800 billion per year. A shift in European households’ savings would make a significant contribution to financing the energy and digital transitions.
This shortfall in long-term investment also results in lower returns on savings and a lack of preparation for retirement. That is why we need to take steps to help households gain confidence and invest in long-term assets.
A NEED FOR STRONG EUROPEAN FINANCIAL PLAYERS
Europe needs strong and resilient financial players. With the acquisition of AXA Investment Managers, BNP Paribas Asset Management has become a leading European player in asset management, with over €1,600 billion in assets under management, covering both listed and private markets and enabling us to offer savers unique access to a comprehensive and diversified range of investment solutions. Moreover, through BNP Paribas’ integrated and diversified model, we can benefit from powerful synergies with private banking, insurance and investment banking activities.
SIGNIFICANT DEVELOPMENT PROSPECTS
As Europe’s leading alternative investment platform, we are ideally positioned to support the allocation towards private assets for both individual and institutional investors. When it comes to listed assets, we are already among the top European players in bond and money market management, and we are stepping up our growth in ETFs.(2) This acceleration will be driven by our increased presence on distribution platforms, notably digital ones. We are also consolidating our relationship with insurance clients, particularly drawing on our partnerships with AXA and BNP Paribas Cardif. As a key driver of growth, the management of personal savings remains a priority, boosted by distribution through the BNP Paribas network and third-party players.
At a time when our clients (whether institutional investors or distributors) are seeking the ideal partner, our diversified platform, with a critical mass of assets under management, is a key strength. It is competitive, built for long-term growth, and underpinned by our commitment to sustainability. Together, these qualities allow us to create lasting value for our clients, our employees and the wider European economy. Undoubtedly, they give us a decisive competitive advantage.“