European wealth concentration in bank deposits

Recent reports highlight a significant structural issue in Europe regarding the concentration of private wealth in low-interest bank deposits rather than productive investments.

Research from ING indicates that eurozone households could have accumulated an additional €1.17 trillion in wealth over the last two decades if a portion of their deposit savings had been directed into investment funds. The study notes that liquid assets in the eurozone are heavily concentrated in deposits, accounting for 62% of liquid financial assets, with particularly high concentrations in France and the Netherlands.

Following this, fintech company Revolut released its ‘European Wealth Drain Index’, warning that trillions of euros in private wealth remain in passive accounts, losing real value to inflation. The index estimates that approximately 1.95 trillion euros are held in passive deposits in Germany alone, which could unlock an annual growth potential of 135.4 billion euros if moved into diversified investments. In Hungary, the index identified 32.6 billion euros in unallocated savings, noting that barriers such as a lack of awareness regarding inflation-adjusted returns prevent savers from accessing capital markets.