The German Retail Securities Market

March 20, 2008

Abstract

New York, NY, USA March 20, 2008

The German Retail Investment Market

By international comparison, the popular equity culture in Germany is still in its infancy. But individual investors' confidence in the capital markets is increasing.

In a new report, The German Retail Investment Market, Celent provides a comprehensive overview of the retail investment market in Germany, examining past growth and forecast growth, the level of market opportunity, and recent competitive dynamics.

Fundamental changes in private investment are currently observable for the German retail investment market. Whereas individual investors' financial asset selection behavior was traditionally accounted for by a large proportion of cash and deposits, investors increasingly assume riskier and more sophisticated portfolios. The mutual fund market is undergoing significant growth, partly spurred by cutbacks in the state-run pension system. Alongside this investment trend, the markets for exchange-traded funds (ETFs) and certificates have developed exponentially.

Source: Deutsche Bundesbank, Celent

In the online brokerage arena, competition for the provision of integrated services is one of the major trends. Major players tend to supplement the classical brokerage business with advisory services and additional services from the banking, insurance, and mortgage lines. Some brokerages have also established a limited physical presence.

"The German retail brokerage market is highly concentrated. Niches for new market entrants remain, but the competition to seize them will be aggressive," notes co-author and Securities & Investments analyst Isabel Schauerte.

"The market is ready to take on more risks. Private investors have taken to buying certificates and ETFs with a ferocity that undermines the belief that Germans have no stomach for financial innovation," she adds.

The 30-page report contains 22 figures and six tables. A table of contents is available online. Members of Celent's Retail Securities & Investments research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

New York, NY, USA March 20, 2008

The German Retail Investment Market

Executive Summary 04
Introduction and Methodology 05
Retail Investor Segments 06
Products and Markets 09
Competitive Landscape 21
Conclusion and Outlook 31

 

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