Banks: French People Are Growing Increasingly Concerned About Scams
A Harris Interactive survey conducted for the Deposit Insurance and Resolution Fund (FGDR) reveals that 69% of the youngest respondents feel vulnerable to fraud and scams involving banking services. Older adults are not far behind, as 59% of those surveyed say they feel vulnerable to scams.
Although they are less exposed to new types of scams—such as those that encourage people to sign up for fake cryptocurrency trading platforms—older adults are wary of trusting fake banking services.
Despite repeated warnings from the French Financial Markets Authority (AMF) against services not registered as digital asset service providers (PSAN), young people continue to place their trust in less traditional platforms. The AMF reiterates that “in order to offer you the ability to hold, buy, or sell cryptocurrencies in exchange for legal tender, exchange cryptoassets for other cryptoassets, or operate a digital asset trading platform, your intermediary must be registered with the AMF.”
Guaranteed New Players
The online offerings identified and approved by the AMF are gaining credibility. Certain names, such as Suméria (formerly Lydia)—a former electronic money institution that has become a bank—are beginning to be widely recognized by this age group, reinforcing their perception of security and reliability.
"The online brokerage Trade Republic recently launched its own custodian bank, while Revolut announced that it has surpassed 3 million customers in France. These new players and the services they offer are attracting customers, particularly young people, who are placing increasing trust in them," the FGDR commented.
Awareness and Perception of Guarantees
Younger people are more familiar with these new investment solutions. They are also more likely to believe that deposit insurance applies to a wide range of online payment services or investment platforms. 23% of those under 25 believe that services like Nickel are protected by deposit insurance (which is not the case), compared to 8% of older adults. Additionally, 11% of younger people believe that cryptocurrencies are covered by the FGDR, compared to 1% of older adults and 6% of the national population, all ages combined.
It is crucial to note that the FGDR does not cover all neobanks and platforms that allow users to deposit funds. The guarantee applies only to institutions authorized by the Autorité de Contrôle Prudentiel et de Résolution (ACPR) that have their headquarters in France or a branch on French territory. “The FGDR guarantee applies only to products denominated in euros or in the official currency of another country,” the organization further specifies.
A Little-Known Mechanism
: Neobanks headquartered in the European Economic Area, or subsidiaries of French institutional banks, are also covered by this guarantee, which provides compensation of 100,000 euros per person per financial institution in the event of bankruptcy, for all deposit and investment accounts (checking accounts, term accounts, savings accounts, Youth Savings Accounts, home savings accounts (CEL and PEL), bank-issued popular savings accounts (LEP), and cash accounts linked to a securities account or a PEA).
It should be noted that Livret A, Livret Bleu, LDDS, and LEP savings accounts are guaranteed by the government, also up to 100,000 euros per customer per financial institution. This guarantee is in addition to the first one, but it is also the FGDR that provides compensation on behalf of the government.
Thus, while Revolut, N26, and Bunq have obtained authorization to operate within the European Union and are covered by the FGDR, non-bank payment institutions are not always protected by deposit insurance. However, they are required to hold their customers’ funds in an external segregated account in order to operate legally in France. These funds are deposited with a traditional bank, which is itself protected by the FGDR. Savers therefore do not have a direct guarantee from the FGDR, and there are risks regarding the reliability of reimbursement; however, this serves as a protective mechanism.
Savers continue to feel a strong sense of security regarding banking institutions, with 72% of respondents saying they trust them, and 54% saying they know they would not lose everything if the institutions were to fail. In contrast, only 42% of those under 25 are aware of the deposit insurance program. That figure rises to 56% among those over 65.
Furthermore, the specific terms of the guarantees offered by the organization remain unclear. Only 23% of French people are aware of the 100,000-euro cap, while just 9% of those surveyed know that these funds are disbursed within a maximum of 7 days.
