UniCredit Bank Austria survey on investment behavior in Austria:
Austrians are very cautious about securities investments
- Traditional forms of saving have been the most common type of investment in 2018, although they incur real losses and more people are saving than there is real interest in doing so
- Habits, fear of complexity and potential risks of loss are identified as the main reasons for avoiding types of investments with higher yield opportunities
- An overview of the various types of investors shows: the “cautious” and “risk avoiders” are the most common types in Austria, while “moderate investors” are enthusiastic about their investment success
- With its AnlagePaket, UniCredit Bank Austria provides an attractive starter kit to take advantage of the capital market’s opportunities:
- 50 per cent of the investment amount is invested in a savings account with a fixed 1.5 per cent interest rate at a six-month term1, the other 50 per cent is invested in selected investment products
- World Savings Day is still important to 1.5 million Austrians as they intend to establish personal contacts and provide their children with the basics of financial education
Marketagent.com conducted a survey called “Interest in and actual utilization of various types of investments” on behalf of UniCredit Bank Austria. The survey concludes that there are four major types of investors. It also finds that Austrians still are very cautious when it comes to types of investments that incur attractive yield opportunities and a certain amount of risk. Resulting from their high desire for safety, 60 per cent of the Austrian respondents said they still relied on traditional forms of saving – even though only 42 per cent said they actually had an interest in this type of investment. The number of people who use this type of investment thus exceeds the number of people with an actual interest in it by 44 per cent.
While 45 per cent of the respondents said real estate investments were interesting and useful, only 22 per cent actually have invested in real estate, which corresponds to a 49 per cent difference. 24 per cent of the respondents are interested in securities investments, but only 16 per cent actually have invested in securities, i.e. a difference of 33 per cent. The survey identifies three primary reasons for this result: habit, fear of complexity, and potential risks of loss.
“The current survey impressively confirms the experience we’ve gained in dialogue with our customers,” says Markus Kosche, Head of Sales for Private Customers, Corporate Customers, and Free Professions at UniCredit Bank Austria. “We see the results of this survey as an instruction to deal with our customers’ demands even more carefully and to take away our customers’ fear of more attractive types of investments by providing individual advice and an interesting product portfolio.”
A survey by Stefan Bruckbauer, Chief Economist of UniCredit Bank Austria shows that Austria’s households invest about half of their financial assets in deposits and only one fourth in securities. Over the last five years, the annual real loss incurred by deposits totaled 2.5 billion Euros, while actual yields from securities totaled 2.5 billion Euros. From today’s point of view, the negative balance of deposits is expected to worsen in 2018, 2019, and 2020, at least. This outlook is complemented by a recent survey showing that most savers said they were “saving for a rainy day” or “saving for their children”. Therefore, they regard it as important to avoid any risks of loss.
Overview of the types of investors
45 per cent of the persons surveyed are part of the group of the “cautious”, who consider securities investments to be not safe enough and even accept that the purchasing power of their savings declines due to their high safety awareness. Another 17 per cent of the persons surveyed would under no circumstances take a risk with investments. These so-called “risk avoiders” usually have had negative experiences in the past, particularly with investments in individual securities or shares.
34 per cent of the persons surveyed may be called “moderate investors”, who usually have had positive experiences with securities investments and other alternative types of investments thanks to personal financial consulting. Individual quotes show satisfaction with successful investment, like “a feeling of happiness, when I do my monthly asset calculation” or “success is big with a higher yield and a calculable risk.” Meanwhile, only 4 per cent of the persons surveyed make up the group of the “venturesome”, who are mostly young persons and have had positive investment experiences, and have often made successful investments based on their own decisions.
The UniCredit Bank Austria AnlagePaket
“This survey clearly shows that a change of the type of investment means a big step for many of our customers,” Markus Kosche says, “However, as we also know that in order to beat inflation, customers need to switch to investments that offer more opportunities than traditional saving deposits in the current low-interest context, such as securities and funds, we are offering a perfect combination of traditional saving and attractive investment with our new AnlagePaket.”
With the AnlagePaket of UniCredit Bank Austria, investors can place 50 per cent of the respective asset on a savings account with an attractive interest rate of 1.5 per cent with a term of six months1 , and invest the other 50 per cent in selected investment products with attractive yield opportunities for the long-term, for example excellent funds or asset management services of experienced investment experts.
Another important investment tool is the non-binding and free risk/reward analysis by UniCredit Bank Austria for all persons interested in investments (not only clients of the bank). Thereby, security deposits are reviewed for resistance to crises and, primarily, how the investment can achieve maximum yield at the lowest possible risk, or how to potentially reduce risk considerably while achieving the same yield.
World Savings Day still popular
“Like our survey shows, interest in World Savings Day remains stable in the long term,” Martin Gölles, Head of Customer Satisfaction and Market Research of UniCredit Bank Austria, is glad to report. About 1.5 million Austrians intend to visit a bank branch office on World Savings Day again. “In times of increasing digitalization in the financial industry, personal contact with the bank, increasing trust, is important to many Austrians. The role of World Savings Day in financial education is still active: Saving is visibly “institutionalized” for children and grandchildren, and also rewarded - in the form of presents – which is still a core reason to visit one’s bank branch office on World Savings Day.”
About the survey
In October 2018, commissioned by UniCredit Bank Austria, Marketagent.com online reSEARCH GmbH carried out 615 online interviews with persons aged 14 to 69 who are customers of a bank.
UniCredit Bank Austria Press Office
Matthias Raftl, Tel.: +43 (0) 50505 - 52809