By Chris Gregory, GTN’s Chief Executive Officer for Europe
Despite Europe’s shared economic zone and a common regulatory framework under MiFID II, cross-border investing remains far more complex than it should be. For retail investors, accessing investment products across member states is often hindered by a web of regulatory inconsistencies, fragmented tax regimes, and cultural preferences that continue to divide the region financially-even as it grows more connected politically and economically.
Barriers to cross-border investing
Right now, one of the key barriers to borderless investing is Europe’s regulatory fragmentation. While MiFID II aimed to harmonise financial markets, national interpretations and additional local rules have created compliance burdens for brokers and asset managers operating across borders. For retail investors, this can mean reduced access to certain products or platforms simply due to where they reside.
Taxation is another significant roadblock. With no unified capital gains or dividend tax framework across Europe, investors face a complex patchwork of withholding taxes, declaration requirements, and potential double taxation. These tax inefficiencies can significantly erode returns and deter cross-border activity.
Cultural differences and financial literacy gaps also play a role. Local preferences—such as Germany’s penchant for savings accounts over equities, or France’s historical trust in life insurance vehicles—mean that products and investment styles often don’t translate well across borders. Language barriers and the lack of a unified financial education framework across Europe significantly hinder retail investor engagement. Most investment platforms, disclosures, and support services are still localised, limiting accessibility for non-native speakers or expatriates. Without consistent, multilingual resources that explain key financial concepts and products, many individuals remain excluded or misinformed — particularly in less financially literate regions. This not only reinforces national silos but also reduces trust and confidence in cross-border investing.
Trends shaping a more integrated future
Digitalisation is a game-changer. A new wave of fintech platforms is reimagining how Europeans can invest. These platforms offer intuitive, mobile-first experiences, lower costs, and simplified onboarding—often with pan-European reach. Technologies like AI and open banking APIs are also enabling better personalisation, automated compliance, and smarter tax optimisation.
The generational shift in attitude towards investing is equally important. Younger investors—digital natives raised on global platforms—are less loyal to traditional institutions and more open to cross-border products, ESG investments, and cryptocurrencies. They’re demanding better access, transparency, and tools to build wealth on their own terms, regardless of national borders.
The opportunity: Embedded infrastructure, API-first models
Embedded finance is revolutionising how Europeans interact with wealth-building tools by integrating investment capabilities directly into everyday digital experiences. From banking apps that offer investment services to platforms enabling micro-investing, the lines between financial services and daily life are blurring. For instance, Revolut allows users to buy fractional shares in global equities alongside their regular banking functions. These experiences are powered by API-first infrastructure that handles everything from order routing to custody sub-account management. By meeting users where they already are and abstracting away complexity, embedded finance not only lowers the barrier to entry but also encourages broader participation in capital markets.
What’s changing is the infrastructure behind these services. Modern fintechs are no longer building every component of the stack in-house. Instead, they’re partnering with specialist investment infrastructure partners who offer a full suite of brokerage and investment services through a single API.
The role of fintech in empowering retail investors
Fintech has the power to do for European investing what low-cost airlines did for European travel: eliminate friction, increase choice, foster healthy competition, and create a truly borderless experience.
By building platforms that abstract away regulatory complexity, offer tax-smart tools, and support multi-language interfaces, fintech can democratise access to global markets. Embedded brokerage solutions, AI-driven portfolio tools, and seamless identity verification across jurisdictions are all part of this new wave.
More importantly, fintech firms can foster a pan-European investor culture—one that values financial literacy, embraces risk in a healthy way, and sees investing not just as a personal finance tool, but as a shared economic project.
For decision-makers at the forefront of digital finance, the time to act is now. Partnering with the right infrastructure provider doesn’t just streamline operations—it unlocks the future of investing.
Truly, fintech firms have the power to foster a pan-European investor culture.