Digital tools are reshaping how Europeans access financial markets, however, the need for transparency, education and qualified advice has never been greater.
For millions of Europeans, the idea of financial freedom has shifted from a distant aspiration to an urgent need. Against the backdrop of inflationary pressures, pension uncertainty, and rapid digital transformation, individuals are increasingly expected to take charge of their financial futures. Yet navigating this complex environment is anything but straightforward.
A new educational video from BETTER FINANCE and EFPA, Invest Today, Secure Tomorrow, addresses a fundamental question: whom can citizens trust to guide them through investment decisions that may shape the rest of their lives?
A Continent of savers, but not always investors
Despite high levels of saving across much of the EU, the financial well-being of European households remains under strain. According to the joint BETTER FINANCE and EFPA report on the Financial Health of Europeans, many citizens lack long-term planning strategies, emergency reserves, or structured investment habits. Roughly one-third of European adults have not set any long-term financial goals. Even among those who do formulate long-term goals, only 15% follow through.
Worryingly, the vast majority of Europeans do not participate in capital markets, with 51% keeping their money in savings accounts and only 22% investing in mutual funds, shares or ETFs.
At the same time, BETTER FINANCE's annual report on pensions has highlighted, year after year, that European pensions are locked into underperforming products that, when adjusted for inflation and costs, often yield negative real returns. This exacerbates the problem, posing a serious concern: will today's savers be able to retire securely tomorrow?
Democratised access, complicated risks
While pensions are not performing as well as they should, digital innovation has stepped in, offering new ways for Europeans to achieve financial security in retirement. Digital innovation has opened the door to retail investing for EU citizens as individual investors like never before. The rise of neobrokers and mobile trading platforms has allowed younger generations to access markets with a few swipes, often through fractional shares and ETFs.
As highlighted in the BETTER FINANCE Neobrokers report, this shift has helped dismantle barriers to market entry, offering users low-cost access and modern user interfaces.
However, with opportunity comes complexity. As noted in the Neobrokers report, the app designs of these digital platforms encourage impulsive trading behaviour while also delivering unclear ownership structures. While access has improved, investor protection frameworks have not always kept pace.
At the same time, the saturated online investing market has escalated investment scams. In 2023 alone, there were 1.3 million search impressions for fake investment platforms targeting EU citizens. These scams, often highly professional in appearance, exploit a regulatory vacuum in digital marketing and reach users through ads, influencers, and direct messaging. For retail investors, the line between legitimate and deceptive advice has become increasingly difficult to discern.
Why professional advice still matters
For Europeans to navigate this complex ecosystem, qualified financial advisers remain a vital ally. According to EFPA’s Financial Advisor Survey on the Retail Investor Journey, retail investors lack confidence and knowledge when choosing financial products. However, certified advisers (who must follow a strict code of conduct obliging them to act in your best interests) can make a measurable difference.
But trust must be earned. BETTER FINANCE continues to advocate greater transparency around fees, clearer adviser qualification standards, and reinforced disclosure rules across the EU. For example, when choosing an adviser, it is best to select a fee-only adviser (where you pay only a one-off fee up front) rather than a commission-based adviser, who earns a commission when you invest in products they recommend, which, in essence, are recurring fees paid indirectly by you as long as you are invested in the product sold to you by the adviser.
The joint BETTER FINANCE and EFPA educational video explains what to look for — and what to avoid — when choosing an adviser, as well as how to prepare for your financial consultations.
Empowering citizens with education
Invest Today, Secure Tomorrow is part of a broader campaign by BETTER FINANCE to empower European citizens through financial education and independent advice. It serves as a practical introduction to long-term planning, the value of starting early, and the importance of seeking professional guidance in an increasingly noisy marketplace.