Investment plans and stock market transactions continue their success
KBC/CBC savings accounts volume also continues to rise
Monday, January 4, 2021 — In a climate of permanently low interest rates, savers and investors continue their search for yield. Low-threshold investment plans in KBC Mobile and an adapted range of funds are increasingly successful.
- In 2020, the number of customers who have taken out 'Invest with your spare change' doubled. Standard investment plans also continued to grow.
- More and more, interest in SRI is still growing: almost 1 new investment in 2 is now a sustainable investment.
- Over the whole of 2020, the number of investors at Bolero, KBC's online investment platform, grew by 46% compared to 2019. There were 245% more new clients in the second half of the year than in 2019. They indicated that not only the dip in the financial markets and low interest rates, but also the extra time and resources released by corona lockdown made them take that step. The number of stock market transactions was no less than 225% higher in the second half of the year than in the comparable half of 2019.
At the same time, the regulated savings account also remained a safe haven for many investors. As in previous years, the upward trend continues. At the end of December 2020, the combined volume at KBC and CBC increased further to 50.04 billion euros. That is an increase of 2.03 billion euros (+ 4.2 %) compared to 30 June 2020 and an increase of 4.23 billion euros (+ 9.2 %) compared to a year ago.
Investment plans on the rise
- Digital apps in KBC/CBC Mobile help to overcome the investment threshold. After all, being able to start periodically with small amounts makes investing more and more accessible. Via "invest with your spare change", payments are rounded to the nearest euro and automatically invested in an investment plan. However, in the months of full lock down the monthly rounded amount was slightly lower.
- In 2020, the number of 'invest with your spare change' plans doubled in comparison with 2019.
- The standard investment plans also continue to be successful. Moreover, only very few customers paused this automatic investment during the Corona crisis.
- In the KBC Mobile app, customers recently also have the option of concluding a long-term savings contract, purchasing additional investment products, etc. This is how KBC brings investor opportunities closer to the customer.
- Interest in investment funds and investment insurances also remains high. In its investment conversations with clients, KBC takes account of their comfort zone so that more and more clients dare to take the step towards investment. More and more customers are opting for mixed funds and multi-signal funds (Expertease). In the latter funds, traditional investment principles are merged with elements of behavioural economics by combining different management techniques. In this formula, the client consciously chooses to ‘have’ his capital invested by experts. Interest in SRI is also growing: almost 1 new investment in 2 is now a sustainable investment.
- In view of the low interest rate climate, interest in term investments remained low.
Continuously growing interest in the stock exchange : Bolero & Matti
- As in the first half of the year, interest in starting investing on the stock exchange remained high in the second half of the year.
- The number of new Bolero clients in the second half of the year was still 240% higher than in 2019. Many young investors also continued to find their way to Bolero: 40% of those new Bolero investors are under 30 years of age. Over the whole of 2020, the total number of Bolero investors grew by 46% compared to the end of 2019. A survey of new clients shows that they started investing not only because of the dip in the markets and low interest rates, but also because they had more time for it and could save more due to the corona lockdown.
- Over the second half of the year, the number of stock market orders was no less than 225% higher than in the comparable half of 2019, with absolute record days in November thanks to the positive vaccine news. For example, the total number of stock market transactions at Bolero was more than 250% higher than in 2019. In the second half of the year, Bolero noticed a strong preference for the American stock exchange followed by Euronext Brussels. There were also still more buy orders (60%) than sell orders (40%).
- Also Matti, Bolero's smart investment assistant, which was launched at the beginning of 2020, experienced a strong inflow in the second half of the year: 41% more investors started working with Matti and the total AUM invested almost doubled. In the second half of the year, Matti preferred technology, sustainability and health.
The savings account nevertheless remains a safe haven in 2020
- The regulated savings account continued to grow in 2020: at the end of December 2020, the combined savings of KBC and CBC amounted to 50.04 billion euros.
- That is an increase of 2.03 billion euro (+ 4.2 %) compared to 30 June 2020 and an increase of 4.23 billion euros (+ 9.2 %) compared to a year ago.
- After a flattish March, we observed an additional increase in the volume of savings in the following months due to reduced consumption opportunities as a result of the corona measures and as a precaution.
Total deposits on regulated savings accounts with KBC and CBC in Belgium:
(If you want to compare KBC figures correctly with those of other financial institutions active throughout Belgium, you need to take into account both the KBC and CBC figures).
Volumes on regulated savings accounts KBC and CBC together:
o 31/12/2020: 50.04 billion euros
o 30/06/2020: 48.01 billion euros
o 31/12/2019: 45.81 billion euros
Breakdown by region
Volumes on regulated savings accounts KBC and KBC Brussels (active in Flanders and Brussels):
o 31/12/2020: 45,73 billion euros
o 30/06/2020: 43.87 billion euros
o 31/12/2019: 41.91 billion euros
Volumes on regulated savings accounts CBC (active in Wallonia) :
o 31/12/2020: 4,31 billion euros
o 30/06/2020: 4.14 billion euros
o 31/12/2019: 3.90 billion euros