The covid crisis has made it difficult to consume and has led to massive savings. According to the Banque de France, between the beginning of 2020 and the end of 2021, the crisis will have generated a savings surplus of 175 billion in France.
Most of these savings would have been built up during the periods of confinement. In 2020 and 2021, nearly 320 billion was saved by French people, compared with 67 billion in 2019.
And since the start of the Covid-19 pandemic, household savings worldwide have reached almost $5.4 trillion. This represents almost 6% of global GDP.
In response to this movement many Fintechs now specialize in savings management. Thanks to artificial intelligence, these Fintechs have created robot-advisors designed to optimize customers’ investments. Thanks to data analysis and the use of specific tools, Fintechs are now able to adapt their financial services to the needs of each customer. And many of them offer reduced fees, thanks to the automation of their services.
Most of investors and savers don’t have the knowledge to manage their savings, so they delegate their management to banks that monitor their capital. Traditional banks generally stick to three risk profiles: secure, balanced, and dynamic. But savings Fintechs offer a much wider choice of allocation profiles, from 1 to 100.
Savers are also more and more attentive to the issue of business conduct or ethics and Fintechs are responding to this expectation with investments based on Socially Responsible Investment labelled funds.
To conclude, Fintechs have now entered the market for delegated savings management. They are revitalizing the sector offering a wide choice of allocation profiles and a reduced management fee. Fintechs now represent a reliable alternative to traditional banks, family offices and private banks.