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February 16, 2023
Should banks have a role in delivering financial advice on crypto?
CREALOGIX Blog: Should banks have a role in delivering financial advice on crypto?
Digital Banking
CREALOGIX Yannick Decaumont
Yannick Decaumont
Managing Director Mediterranean & Middle East

Our recent study into the demand for crypto services showed that there was a strong preference, amongst both current and potential crypto investors, to work with an established provider. Just over half of crypto investors are very likely or absolutely certain that they would use traditional banks for crypto services. While the fintech challengers may have been first to the market, established financial organisations can leverage the trust, experience and robustness that investors are looking for to support long term investments.

Financial education through digital channels

One area that stood out in our research study was the need for greater education amongst those interested in crypto. The inclusion of an education programme via a digital interface and secure, convenient interaction with an advisor could be a powerful value driver as banks and wealth management firms take their crypto offerings to the market. Current crypto investors also rated more education and information highly but would have different needs compared to beginners.

Digital channels are ideal for creating tiered information and even short online courses, for the absolute beginner to the more expert customer. Crypto is a great example of the opportunity to support customers with more education and build loyalty because it is new to so many people. Lessons learned in this area could be transferred to other areas of finance to offer greater support to customers, building customer loyalty and preventing attrition.

The line between personalised resources and financial advice

There are regulatory restrictions and industry requirements relating to financial advice. Banks may not wish to expose themselves to the risk of providing financial advice on a large scale, but there are still significant opportunities. Digital banking tools can be used to personalise educational resources. For example, when it comes to crypto, customers could start with an online beginner course, and even set up a mock portfolio so that they can test their knowledge and monitor performance.

Banks also have a lot of data regarding their customers and could therefore provide information and educational tools relating to their financial circumstances. This could be about crypto or more traditional investments – even perhaps contrasting the two or showing the effects of different levels of investment in each. Alternatively, it could relate other areas of the bank’s business including mortgages, retirement planning or helping customers plan for major life events such as the arrival of children.

Digital banking resources for crypto and beyond

Our research into crypto showed that established banks are trusted by customers. This is why so many people interested in crypto would like to use such a financial services provider for this new asset class. This trust can not only be leveraged to gain market share but also serve as a foundation for a broader range of educational resources and tools which support customers. One of the greatest advantages here is that if there comes a point when customers require more specific and expert financial advice, they can be passed to an advisor who can meet with them in person or via digital channels. The advisor will already have all the background they need on the customer’s financial situation and their level of knowledge and interest based on the use of digital banking tools.

This demonstrates the value of a truly seamless omnichannel experience and while crypto may be an ideal test ground for such a solution, it is likely to become standard for many areas of financial services in the future. Learn more about our research into the demand for crypto here.

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