Banks Risk Losing Market Share as Crypto Demand Grows in Europe
Despite growing investor interest, fewer than one in five financial institutions currently offer digital asset products.
The study, which surveyed 10,000 retail and business investors across 13 European countries, found that over 40% of business investors already hold cryptocurrencies, and another 18% plan to invest soon. However, only 19% of financial institutions reported strong demand for crypto products from their clients, indicating a 30% gap between actual investor adoption and the perceived need for crypto services.
Financial Institutions Slow to Respond
Despite the growing importance of crypto, only 19% of European financial institutions currently offer crypto services, with more than 80% acknowledging its growing relevance. However, 18% of surveyed institutions are planning to expand their crypto offerings, especially in areas like crypto transfers, showing recognition of the growing demand.
Internal Barriers to Crypto Adoption
Lukas Enzersdorfer-Konrad, deputy CEO of Bitpanda, highlighted that the main barriers to adoption are not external factors like regulation but internal issues such as a lack of resources and knowledge. He urged financial institutions to track revenue outflows to understand the real demand for crypto services.
Investors Prefer Traditional Banks for Crypto Investments
The survey found that 27% of respondents would prefer to invest in cryptocurrencies through traditional banks, compared to just 14% who would choose a crypto exchange. Among business investors, 36% prefer exchanges, while only 27% prefer traditional banks. This suggests that offering more crypto products through banks could drive higher adoption in Europe.
Financial Institutions Risk Losing Revenue
Enzersdorfer-Konrad warned that banks and financial institutions that fail to integrate cryptocurrency services risk losing significant revenue to competitors or crypto-native companies. With the EUs Markets in Crypto-Assets Regulation (MiCA) providing regulatory clarity, the time for institutions to act is now.
Future Outlook
Additionally, 28% of surveyed institutions expect crypto to become more relevant within the next three years, further emphasizing the need for financial institutions to adapt to the evolving market.
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Text source: Coindoo
