Following its recent study of about 175 top banking officials from regional and international financial institutions, American Banker has now submitted a set of predictions for 2022 especially with regards to crypto adoption amongst these banks. For what its worth, the American Banker magazine is one of the most trusted source of content when it concerns banking innovation, regulations, and technology.
Key Notes From The Findings of American Banker
Highlighted below are the key findings from the submission:
Firstly, 44% of surveyed banking executives expect to offer some form of crypto services to customers by 2022 ending. That’s already more than twice the number that offered crypto services last year.
Also, a whooping 60% of surveyed wealth management advisors expect their clients to either start investing in crypto or increase crypto holdings in 2022, if they already have.
One-third of wealth managers also expect to actively manage their client’s crypto portfolio. That’s up from the current 13% who provide that service.
Healthy Competition Among Banks
Additionally, the research also found that banking executives have come to realize that fund transfer methods and alternative payment options will be key in satisfying customers in the year 2022. And as expected, banks will want to keep up with their customers’ demand to gain more of their “wallet share”. But in order to do this, they must also be willing to provide different types of services.
These services include direct deposits, auto bill payments, low cost fund transfers, and bank-branded debit or credit cards. And in all honesty, crypto projects can perform all of those services faster, and cheaper than banks at the moment. In fact, blockchain-based funds transfers even have settlements that happen in a matter of seconds and not days.
Another example is that many credit cards offer crypto rewards in the user’s preferred crypto. Now, banks that may adopt a few of these offerings clearly place themselves at an advantage over their competitors. No wonder the results from the survey indicate that banks are now vying to hold competitive advantages over one another.
Although no one can say for certain what the future holds for any financial activities, but seeing as global banks are now seriously considering expanding their cryptocurrency and blockchain options this year, the facts can’t be ignored. Adoption of digital currencies by large financial interests would go a long way in creating a bright future for cryptos.