Seven out of ten savers in Spain invest between 1,000 and 50,000 euros
According to the first Investment Barometer by Popcoin, Bankinter’s online investment management platform, having a bank to provide support for their investments is important to 94% of Spanish customers.
Pension funds (45%) and investment funds (44%) are the two financial products preferred by Spanish customers.
In Spain, six out of ten savers between the ages of 25 and 44 prefer subscribing to investment funds online instead of in-person.
71% of savers in Spain invest and have between 1,000 and 50,000 euros laid out on various financial products. This is one of the main conclusions drawn by the first Investment Barometer by Popcoin, Bankinter’s online investment management platform.
Within this bracket of investors, 34% say they are investing between 1,000 and 10,000 euros, while 37% claim to be in the 10,000-50,000-euro range. When asked about their regular investments, 60% of investors say they invest up to 500 euros, while 20% put in amounts above 1,500 euros.
The ‘barometer’ also concludes that Spanish customers greatly appreciate investing with a professional manager, as demonstrated by the fact that 93% of those surveyed felt it was important to have a manager to help take decisions and give opinions about their investments. Moreover, the positive opinion of those surveyed regarding the security in having a bank support their investments reveals increasing confidence in management services. 94% considered this an important factor when deciding to invest.
Preferred products: investment funds and pension funds
In regard to the favourite investment products of Spanish customers, pension funds (45%) and investment funds (44%) stand out above all other financial products, including stocks (35%).
Investment funds are particularly popular among those aged 35 and above. 50% of investors aged between 35 and 44 resorts to this product. This percentage drops to 45% amongst those aged between 45 and 54, while 53% of investors older than 55% entrust part of their savings to investment funds.
Online channels on the rise
The first Investment Barometer also revealed an upward trend in online investing. Amongst those aged between 25 and 34, 55% prefer to invest online, while only 32% would rather visit a branch office in person. This change confirms a shift in social preferences toward online services like robo-advisers and online investment managers; and is also noted in the 35-44 age group, where 46% use online platforms to decide where to put away their savings, compared with 43% who still prefer in-person channels.
This inclination toward online channels is particularly evident upon considering, not only customers’ age, but also their knowledge of finance: the more they know, the more they invest via online channels. According to Popcoin’s first Investment Barometer report, 58% of savers claim to have a normal understanding of finance and thus, understand basic concepts, such as a share in a publicly-traded company, interest rates and an investment fund. 23% say their understanding is advanced and that they understand terms like risk, investment capital and value impairment.
Lastly, only 5% of those surveyed claim to understand more complex concepts, and 14% say they have no understanding of finance. Overall, those with a high or very high understanding of finance make very clear their preference for online channels to invest (56% and 60%, respectively).
Popcoin and its first Investment Barometer report
Popcoin is Bankinter’s online investment management platform and the first robo-adviser launched by a bank in Spain. This service aims to democratise investing, which had only been available to high net-worth individuals. It makes it accessible to all savers in a simple and quick manner, with competitive prices. It lets any saver set up a portfolio with as little as 1,000 euros, giving access to top funds that normally require a larger initial investment under other circumstances. Popcoin uses the best combination of algorithms and professionals with over 10 years of experience in selecting and creating fund portfolios, with the support of Bankinter, one of the most solvent and profitable banks in Spain.
With its first ‘barometer’ report, Popcoin aims to provide data on changes and trends in investing in Spain. This barometric study was conducted by YouGov via online interviews, with a sample of 1,950 participants in Spain. This figure consists of an initial sampling of 1,000 people. It is based on a quota sampling representing all of Spain by age, sex and geographic area, as well as an additional quota for five specific regions (Basque Country, Andalusia, Region of Madrid, Catalonia and the Valencian Community). National findings did not consider these additional responses given from the said regions.