U.S. Financial Advisors Expect Proportion of Clients Holding Cryptocurrencies to Rise by 60% Cryptocurrency
According to the findings of a new survey, the number of financial advisors currently advising cryptocurrency clients is expected to double from two in ten currently, or 20%, to 44% by the end of 2022.
Only 4% expect the number of customers holding crypto to decrease
The number of financial advisers in the United States currently advising clients on crypto holdings is expected to double in 2022, according to a new study. According to the study, which surveyed US-based wealth management experts, this projected increase in the number of advisors to 44% goes hand-in-hand with their expectation that more clients (around 33%) are likely to become asset holders. crypto by the end. of 2022.
As data obtained from the 153 respondents who took part in Arizent Research’s 2022 prediction survey shows, around 60% of financial advisors expect to see the number of clients holding cryptocurrencies increase. And with only 4% of respondents expecting that number to drop, the survey results suggest that customer demand for cryptocurrencies is not diminishing.
Other Competitive Threats
Rather, the results show that cryptocurrencies, which are now widely covered in the financial press, “are [now] a big theme in investment circles “However, according to the study’s report, this growth in the popularity of cryptocurrency has added to the list of concerns for banks which already include the threat posed by corporations financial and payment technology as well as the discussed U.S. digital currency.The research report explains:
Only four in ten banks expect to increase their investment in traditional credit cards with loyalty and rewards features over the next three years. This may reflect other competitive threats to credit cards, such as digital payment alternatives like PayPal and Venmo and Federal Reserve initiatives.
That’s on top of one in four banks that see a real possibility of a competitive threat posed by banking consumers in U.S. Federal Reserve initiatives “such as FedNow real-time payments, an alternative to traditional wire transfers and transfers.” ACH”. The potential creation of a “digital dollar” currency is also seen as another possible competitive threat.
At the same time, the study also found that the possibility of big tech companies forcing their way into the financial services industry is a major concern for banks and insurers. As the data shows, roughly “six in ten digital insurers are concerned that these incursions pose a competitive threat.”
On the other hand, nearly half of all banks, “or 47%, expect Big Tech to become a major competitor within three years.” The results also show that regional banks are the most worried with 64%.
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