Solidarity finance experienced another record year in 2021. Its total outstanding balance increased by more than 26% to €24.5 billion. This strong growth of solidarity finance is explained, in particular, by a greater demand for these products by savers and by the entry into force of a measure of the Pacte law that obliges insurers to offer a solidarity account unit in unit-linked contracts.
Strong growth in outstanding balances of solidarity finance
According to the barometer of solidarity finances FAIR – La Croix, during the year 2021, there were almost 1.2 million new subscriptions to a solidarity investment. These are carried out by savers through their company, their bank or mutual, or through a solidarity company.
Total balance of solidarity savings increased by 26.6% in 2021. It reached, in fact, 24.5 billion euros as of December 31, 2021: a record! In detail, the solidarity savings of the employees amounts to 14,100 million euros, that is, 57% of the active total and the bank solidarity savings of 9,500 million euros (39% of the active total).
Although their total outstanding balances are increasing considerably, solidarity finances still represent only a small part of the financial savings of the French: 0.41%.
The reasons for the growth of solidarity finance
Several reasons can be cited to explain the sharp increase in the total outstanding amount of solidarity financing.
The first reason is on the demand side. As indicated by the head of FAIR’s Social Impact Finance Observatory, Jon Sallé, “theThe French are increasingly seduced by the idea of allocate your savings towards projects that have a particularly strong social impact “.
160 undertakings for collective investment (OPC) are currently called Finansol.
The strong growth of solidarity finance is also linked to the entry into force on January 1, 2021 of a scope of covenant law oblige insurers to present a joint unit of account in unit-linked contracts. According to the Social Impact Finance Observatory, this measure has made it possible, in particular, to generate greater publicity for the supply of solidarity finance products.
Third factor that favors the progress of solidarity finance: refunds of solidarity funds. In fact, several recent studies have shown that they were not inferior to “traditional” funds.