European Banks Have Launched In-House Investment Funds
Major financial groups are replacing third-party offerings with their own branded funds to capture management fees.
Updated on Sept. 29, 2026 in Investing
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Major European banks and investment platforms have recently launched in-house exchange-traded funds (ETFs) or filed for regulatory approval. This shift aims to keep management fees within the institutions rather than paying them to outside asset managers.
Why it matters
By manufacturing their own funds, banks are leveraging their control over app-based investment platforms and captive retail customer pools to redirect investment flows. This strategy allows institutions to capture recurring fee income as they prepare for a significant influx of capital from pension reforms.
European ETF assets reached $4 trillion in 2026, marking a tripling in value since 2020. This growth is expected to continue as Germany's pension overhaul prepares to inject a projected €40 billion annually into the fund market.
The players
UniCredit
A European banking group offering diverse consumer credit, savings, and investment services.
Commerzbank
A German commercial bank providing retail banking, wealth management, and brokerage services.
Revolut
A digital financial technology company that provides app-based banking and investment platform services.
ING
A multinational financial institution offering consumer banking, insurance, and investment products.
Santander
A global financial group that provides personal banking, mortgage lending, and investment management services.
The details
Financial groups are partnering with white-label asset managers, such as Amundi or State Street, to construct branded ETFs that are then exclusively promoted within the banks' digital apps and savings plans. By controlling product placement, these firms aim to secure management fees directly from their 100 million retail customers. This structural change replaces the traditional model of distributing third-party investment products to their clients.
Timeline
2020: European ETF assets began a period of rapid growth.
January 2026: Major banks began launching proprietary ETFs or filing for regulatory approval.
September 2026: Analysis published regarding the banking industry's strategic shift toward in-house fund manufacturing.
Money Landscape
This move marks a significant departure from the traditional bank-distributor model as institutions seek to internalize fee structures. It positions these banks to capture a substantial share of the €40 billion in annual inflows expected from Germany's pension system overhaul.
Investors may see a shift in the investment options available within their banking apps as proprietary funds replace third-party choices. Review your portfolio's management fee structures to ensure in-house funds remain cost-competitive, and consult a financial professional before making changes.
The takeaway
Banks are moving to own the entire investment chain to capture more management fees from their millions of retail clients. Investors should track the expense ratios of any new branded funds they are offered to ensure they match or beat the costs of the third-party products they replace.
Further reading
For more on building a portfolio, visit our Investing section for guidance on fund selection.
Source note: This article includes information reported by Financial Times News.
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