The case for crypto is getting stronger for financial institutions; new global research finds nearly 40% of crypto owners are likely to switch primary banks to one that offers crypto products
Visa (NYSE: V), the world’s leader in digital payments, recently announced its Crypto Consulting Services, an offering designed to help clients and partners advance their own crypto journey. This comes at a moment when digital currencies are taking greater hold in the popular consciousness— according to research released by Visa, awareness of crypto among financial decision makers is near universal at 94% around the world.
In a new global study, “The Crypto Phenomenon: Consumer Attitudes & Usage,” Visa found that nearly one-third of respondents have directly engaged with crypto – either as an investment vehicle or to send or receive money. And globally, nearly 40% of crypto owners report they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months.
“We’ve long viewed crypto as a technology with staying power both as a platform for money movement and as a focal point for a global community of developers, investors and fintechs,” said Aldo Laubscher, South Africa Country Manager at Visa. “Crypto is capturing the attention of people around the world as they think about how they want to invest, where they want to bank, and what the future of money looks like. As crypto becomes more widely understood and adopted, financial institutions have an opportunity to meet crypto demand head on.”
For financial institutions eager to attract new customers with a crypto offering, or to build loyalty among existing clients, understanding the crypto ecosystem is a vital first step. Visa’s network of consultants and product experts are helping financial institutions evaluate and meet growing interest in crypto, develop concrete strategies, and pilot new user experiences and innovations like crypto-backed rewards programs and CBDC-integrated consumer wallets.
“We’ve seen a real shift in our clients’ mindset in the last year, from a desire to explore and experiment with crypto, to actually building a product roadmap,” said Laubscher. “We believe that every financial institution – whether a large multinational or regional credit union – needs to be thinking about crypto, tracking its developments and forming a strategy, adds Laubscher.
CONSUMER ATTITUDES AND ADOPTION OF CRYPTO
Client interest in building crypto solutions comes as new Visa research shows significant interest and adoption among consumers globally. Surveying more than 6,000 financial decision makers across eight markets (Argentina, Australia, Brazil, Germany, Hong Kong (SAR), South Africa, the U.K. and U.S.), the Visa study uncovered the following insights:
- The crypto headlines are having an impact. Awareness of crypto is almost universal at 94% globally among survey participants with discretion over their household finances.
- A significant segment is using or investing with crypto: Nearly one in three of these crypto-aware adults already own or use cryptocurrency, and the majority of that group (62%) say their use has increased in the past year.
- Engagement is higher in emerging markets. 37% of crypto-aware consumers in emerging markets use or own crypto compared to 29% in developed markets.
- Key motivators include wealth-building and belief in crypto as the future of financial services. The biggest drivers of owning and using cryptocurrency are to take part in the “financial way of the future” (42%) and to build wealth (41%) – both forward looking motivators.
- Crypto cards and crypto rewards are attractive. Among current crypto owners, 81% express interest in crypto cards, which allow you to convert and spend crypto at the retailers where you shop in the same way you can use a debit or credit card. 84% are interested in crypto rewards, which allow you to earn crypto as a reward for your card spending.
- Consumers are willing to switch banks in search of crypto products: Globally, 18% of survey participants say they would be likely or very likely to switch their primary bank to one that offers crypto-related products in the next 12 months. This is particularly true for emerging markets, which jumps to 24%. Among consumers who already own cryptocurrency, nearly 40% are willing to make the switch.
- We identified 5 Types of Crypto-Aware Consumers with Varying Degrees of Cryptocurrency Engagement: These include Active Owners, Passive Owners, Curious, Skeptics, and Unengaged.
- South Africa has the greatest engagement overall, with both the highest percentage of 28% Active Owners 16% Passive Owners, 26% are Curious, 7% are Skeptics and 23% are Unengaged.
- South Africa compares very well to the rest of the world when it comes to awareness of cryptocurrencies and active usage.
“Now, with the rise of crypto, we are committed to connecting our network to crypto and blockchain networks to deliver on its mission: enabling individuals, businesses, and economies to thrives” said Aldo.