On Monday, American Banker – a popular publication for top banking leaders — issued its 2022 banking predictions based on survey results of 175 top executives including C-suite, regional, and divisional execs spanning global and community financial companies. According to the report, cryptocurrencies are going to play a bigger role in traditional banking next year, even though only 2 in 10 financial advisors currently counsel their clients on crypto holdings. Other crypto highlights from the 22-page report include:
- Nearly 40% of those questioned said they are likely/somewhat likely to offer crypto services to retail clients next year.
- Approximately 10% currently manage Bitcoin or other digital currencies within their client accounts.
- On average, respondents said 4% of their consumer clients currently own some type of crypto.
- Sixty percent of survey participants said they expect crypto ownership of their consumer clients to increase in 2022.
- Only 2% of the industry executives who responded to the survey said their institutions already offer cryptocurrency transactions, but more are preparing to make the leap.
As U.S. lawmakers and regulators get their arms around crypto, the survey report further found that about 66% of surveyed executives said more policy work could spur competition on products such as stablecoins.
"We expect the agencies to provide further clarity on managing risks associated with digital assets, including crypto-assets, in 2022 – noting that in-flight legislative efforts may significantly alter the regulatory landscape,"
researchers stated in the report.
Data for the American Banker report was gathered from 175 qualified leaders and staff at banks and fintechs of varying sizes who completed an online survey. Just under half of respondents are C-suite and senior business unit executives. Some 42% are division and department heads, senior directors and directors, and senior managers and managers. Approximately 1 in 5, or 21%, work at a global or national bank. The same percentage work at community banks. Nearly as many, or 19%, work at regional banks. Some 16% work at credit unions and nearly 1 in 4 work at a fintech firm.
On The Flipside
- The key crypto finding was that nearly 40% of the survey participants reported that they’ll be likely/somewhat likely to offer cryptocurrency services next year to consumer customers – not just institutional clients.
- That is a major development as banks have been mostly focused on large accounts thus far instead of retail investors.
Why You Should Care?
Banks are not going away anytime soon, it’s good to see them trying to adapt to the crypto-blockchain future for average investors.