- Eurozone savers deposited €43 billion in March 2020, marking the eighth month where net inflows exceeded 40 billion euros since February 2019
- French, Italian and Spanish savers transferred the most money to their bank accounts
- German savers displayed similar behaviour during the 2008 financial crisis and the 2020 coronavirus outbreak
Hamburg, 18. May 2020. Eurozone deposit flows remained stable amidst the sudden economic shock of Coronavirus, with European savers transferring €43bn into their deposit accounts in March 2020, according to new research published today by Hamburg-based FinTech Deposit Solutions. This marks the eighth month where net inflows exceeded €40 billion since February 2019, demonstrating the resilience of the European deposit market in crisis.
The research shows that French savers deposited the most into their accounts in March 2020, (€19 billion), followed by Italian savers (€17 billion), and Spanish savers (€10 billion). A total of €7,800 billion is currently deposited in eurozone banks, of which €750 billion has been added in the past two years.
Commenting on the findings, Dr. Tim Sievers, CEO and founder of Deposit Solutions said “Both European savers and banks rely on deposit products in times of crisis. Savers are looking for protection against market fluctuations and the security of guaranteed deposits. Banks, in turn, receive stable and securely predictable financing, which is particularly valuable in times of volatile financial markets. “
German banks hold by far the most customer deposits in the Eurozone, with €2,400 billion. However, according to the analysis, in March 2020, Germany was one of the few eurozone countries where people held less money in their accounts than the previous month – a decrease of €10 billion or 0.4 per cent. Similar behaviour was already observed in September 2008, after the collapse of Lehman Brothers which led to the financial crisis, whereby German savers withdrew 0.4 per cent (€6 billion) more money from their accounts than they paid in, but then transferred many times this amount (€70 billion) back into their account in the following three months.
In other eurozone countries, however, there are significant differences between 2008 and 2020. In September 2008, there were also cash outflows from deposit accounts in the Netherlands, France and Spain. In March 2020, however, all three countries were among the largest net contributors. The crisis in March 2020 is not a repetition, even with a view to customer deposits across the entire eurozone. Net deposits into deposit accounts fell steadily in the months before September 2008 and reached their lowest point with the Lehman bankruptcy. In 2020, on the other hand, deposit growth remained stable both before the crisis and at the time of its outbreak.
About the analysis:
For the analysis “Resilience in crisis. Eurozone deposit flows: 2020 Coronavirus pandemic vs. 2008 financial crisis”, publicly available data from the European Central Bank was researched, analyzed and evaluated in order to determine the monthly change in retail deposit balances of banks in the eurozone between January 2008 and March 2020. Retail deposits are defined as deposits of all maturities of private households, for example checking accounts, savings books, call money or time deposits.
See the full results
Coronavirus pandemic: eurozone retail deposits remain stable
About Deposit Solutions:
Deposit Solutions is a globally recognized FinTech company that operates the first open banking platform for savings. With its technology, the company has developed a new infrastructure for the $50 trillion deposit market worldwide, from which banks as well as investors benefit. Deposit Solutions has already connected over 150 banks and 20 countries to its platform. In addition, the company markets selected deposit products from its partner banks directly to savers through the ZINSPILOT and Savedo sales channels. 2011 by Dr. Founded by Tim Sievers, Deposit Solutions has offices in Berlin, London, Zurich and New York in addition to its headquarters in Hamburg. Deposit Solutions’ partners include leading tech investors such as e.ventures, Vitruvian Partners, Greycroft, FinLab, Kinnevik, Peter Thiel, Top Tier Capital Partners and angel investor Stefan Wiskemann and Deutsche Bank AG. You can find more information at: www.deposit-solutions.com
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