More and more consumers are wondering how they can arm themselves against inflation. Rising inflation threatens the purchasing power of accumulated wealth or savings. Investing offers solace. Blanco helps financial service providers to make investment accounts more accessible, so that more consumers are armed against inflation.
More inflation than expected
The newspapers have been full of reports in recent months to share the news: inflation is rising sharply. Raw material prices are rising and there are (still) problems in the supply chains. These price increases are being passed on to consumers. The inflation rate in the Netherlands for the whole of 2021 was 2.7 percent; for November it was 5.2 percent and for December 5.7 percent.
The IMF calculated the following:
- The first expectation was that the price level would rise 2.3 percent this year in developed countries. New calculations point to 3.9 per cent.
- The price level would increase 4.9 percent in emerging countries. This has been adjusted to 5.9 percent.
The expected inflation rate for 2022 has therefore been revised upwards. Inflation poses a serious risk to consumers’ purchasing power. After all, anyone who leaves their money in a savings account will notice that it is worth less and less. There is a solution for this: investment. Those whose assets grow with inflation – or preferably, grow even faster – do not lose purchasing power.
From savings to investment account
To ensure that investing – the best weapon against inflation – becomes accessible to more people, it is necessary to give more consumers access to an investment account. There is a task for banks, asset managers and other financial service providers to develop investment services for a larger public. In this way, investing – building up assets outside of savings accounts – becomes accessible to even more consumers.
Between dream and deed, legislation stands in the way, as do practical objections. To be more precise: legislation to combat money laundering and the financing of terrorism, regulations that make it compulsory to check the identity of consumers. For asset management and advice, in order to comply with the duty of care, the necessary gathering of information is still required. As such KYC processes are costly, the provision of investment products is still unnecessarily inaccessible. The same applies to various reporting processes, which are still often very laborious.
Blanco’s smart solutions make it possible to automate KYC and other reporting processes. This makes it possible for even more companies to offer investment products to a wider audience. Innovation, automation, standardisation and ultimately cost-saving, can have a democratising effect on the portfolio of financial service providers. In this way, digital transformation in the financial sector contributes to the transformation from savings to investment accounts, and the consumer is armed against inflation. Curious about our solutions? Get in touch via email@example.com.