US financial advisors expect share of crypto holding clients to increase by 60% – Finance

According to the results of a new survey, the number of financial advisors currently advising crypto holding clients is expected to double from the current two in ten, or 20%, to 44% by the end of 2022.

Only four percent assume that the number of crypto holding customers will decrease

The number of financial advisors 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% is in line with their expectation that more clients (around 33%) are likely to become crypto holders by the end of 2022.

As they show Data According to the 153 respondents who took part in Arizent Research's 2022 forecast survey, about 60% of financial advisors expect the number of crypto holding clients to increase. And with only 4 percent of respondents expecting this number to decline, the study results suggest that customer demand for cryptocurrencies is not slowing down.

Other Competitive Threats

Rather, the results show that cryptocurrencies, which are now widely covered by the financial press, “are [now] a big topic in investor circles.” However, according to the study's report, this increase in cryptocurrency popularity has expanded banks' list of concerns, which already includes the threat from fintech and payments companies as well as the discussed US digital currency. The study report explains:

Only four in ten banks see their investment in traditional credit cards with loyalty and rewards features increasing over the next three years. This could be a reflection of other competitive threats to credit cards, such as: B. digital payment alternatives such as PayPal and Venmo as well as Federal Reserve initiatives.

This is in addition to one in four banks seeing a real possibility of a consumer banking competitive threat in Federal Reserve initiatives “such as FedNow real-time payments, an alternative to traditional wire transfers and ACH transfers.” A “digital dollar” currency is also seen as another possible competitive threat.

Meanwhile, the study found that the possibility of big tech companies entering the financial services industry is a key concern for banks and insurers. As the data shows, around “six in ten digital insurers fear that these advances pose a threat to competition”.

On the other hand, almost 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 concerned at 64%.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic struggles of some African countries, as well as how digital currencies can provide an escape route for Africans.

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