Revolut warns of wealth loss from passive European savings

Fintech company Revolut has released its ‘European Wealth Drain Index’, highlighting a structural issue where trillions of euros in private wealth remain in low-interest, passive bank accounts. The report suggests that much of Europe’s approximately 33 trillion euros in private wealth is underutilized, failing to reach capital markets and losing real value to inflation.

In Germany, Revolut estimates that roughly 1.95 trillion euros are held in passive bank deposits. The company suggests that moving these funds into diversified investments could unlock an annual growth potential of 135.4 billion euros for the German economy. The report notes that with inflation rates often exceeding deposit interest rates, savers are seeing a reduction in purchasing power.

In Hungary, the index identifies 32.6 billion euros in unallocated bank savings. Diverting these funds into capital markets could potentially inject 1.1 billion euros of growth capital into the economy annually. A consumer study in Hungary revealed that many savers face barriers such as a lack of awareness regarding inflation-adjusted returns and a tendency to remain with preferred banks despite lower interest rates.