Policy-driven innovation: the Swedish model goes European

Policy is becoming a catalyst for retail investment participation. Sweden’s Investeringssparkonto (ISK) has brought 3.8 million households into investing through a simple tax-advantaged framework. Inspired by this, the European Commission is working on a pan-European Savings and Investment Account (SIA), with the goal of channelling the €1.4 trillion that European households save annually into long-term investment.

Best practices already exist beyond Sweden. The UK has 22.3 million Individual Savings Account holders, and Germany’s ETF savings plans have grown tonearly 5million accounts by 2024. These examples show that when tax incentives, product simplicity and digital access come together, participation can scale quickly.

For financial institutions, this creates both an opportunity and a challenge. Providers that anticipate regulatory developments and design products aligned with fiscal benefits will be better positioned to capture growth. Simplicity, transparent costs and clear rules around tax treatment will be decisive in driving adoption, especially among first-time investors.

Institutional transformation

The shift from saving to investing is not limited to households. Institutional investors are also restructuring portfolios in response to low yields, inflation dynamics and long-term funding needs. ING, for example, has consolidated its global investment capabilities into a single Global Investment Centre, which manages around €250 billion in assets. This reflects a broader trend toward scale, efficiency and centralized expertise.

McKinsey forecasts that alternatives such as private equity and infrastructure will account for roughly 20 percent of institutional portfolios by 2026. This reflects a growing need for diversification and long-term income streams, particularly for pension funds and insurers facing demographic and regulatory pressures.

Technology and policy: the twin engines of Europe's wealth shift

The European market for saving and investing is changing not only because of consumer behavior, but also because of two reinforcing forces: technology and policy.

On the technology side, digital platforms are making investing more accessible. Deloitte notes that 80 percent of retail clients expect real-time insight and personalized recommendations, while 65 percent of European banks are already working on this integration. PwC expects that by 2026, 30 percent of all retail investments will be executed via digital channels. Hybrid products such as ABN AMRO’s Investor Savings Account illustrate how this can translate into concrete solutions that meet client needs for both liquidity and growth.

On the policy side, the European Commission is developing the pan-European Savings and Investment Account, inspired by Sweden’s ISK model. In parallel, established schemes like the UK’s ISA and Germany’s ETF savings plans continue to grow, with 22.3 million ISA users and nearly 5 million ETF savings accounts by 2024.

Technology and policy reinforce each other. Digital channels lower the barrier to entry, while fiscal frameworks and regulatory initiatives create incentives to participate. Institutions that bring these elements together in user-friendly and transparent propositions will be best positioned to lead Europe’s wealth shift.

What this means for the future

Investing is becoming more common as part of household financial planning. Digital access and policy-driven incentives are reshaping the European financial landscape. For households, the challenge is to build more resilient balance sheets in a world where saving alone no longer preserves wealth. For institutions, the task is to guide that transition responsibly by offering clear choices, transparent communication about risk and return, and solutions that balance short-term security with long-term objectives.

Europe’s next phase of wealth creation is not only about new products, but about a changing mindset around capital. From Stockholm to Brussels, from retail savers to institutional investors, the shift from saving to investing is gaining momentum. The open question is which providers will help shape that transition.

 

Sources

1. Deloitte, Banking Industry Outlook 2025
2. McKinsey, Out of balance: What’s next for growth, wealth and debt
3. EFAMA, Fact Book 2025
4. PwC, Asset and Wealth Management Revolution
5. ABN AMRO, productinformatie Beleggers Spaarrekening (2025)
6. Investment Officer, “Roep om Europees beleggingsspaarplan naar Zweeds model”, 15 september 2025
7. Europese Commissie, Savings and Investments Union (2025)
8. Investment Officer; HMRC data; Broker Vergleich
9. Investment Officer, ING Global Investment Centre, 11 september 2025
10. McKinsey, Global Wealth Analysis
11. De Tijd, “Spaarboekjes kennen sterkste groei in minstens 15 jaar”, 3 januari 2026