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Offer Financial Advising to Members?

NEW YORK—Credit unions that offer financial advising services to members will want to pay attention to one new forecast, which calls for the number of financial advisors in the United States that currently counsel their clients on crypto holdings to double in 2022.




According to Arizent Research’s 2022 Prediction survey, which surveyed wealth management experts based in the U.S., the predicted rise in the number of advisors to 44% is in tandem with their expectation that more clients (about 33%) will likely become holders of crypto by the end of 2022.

As shown by the data that was obtained from the 153 respondents that participated in the survey, about 60% of financial advisors expect to see the number of crypto holding clients increase,” Bitcoin.com stated in its analysis. “And with only 4% of the respondents expecting to see this number drop, the study findings suggest clients’ demand for cryptocurrencies is not waning.”

‘A Big Theme’

Rather, the findings show that cryptocurrencies, which are now widely covered by the financial press, “are a big theme in investing circles,” according to the report. The study found, however, that this growth in cryptocurrency’s popularity has added to banks’ list of worries, which already includes the threat posed fintech and payments firms as well as the mooted U.S. digital currency.

The study predicts that only four in 10 banks will see an increase in their investment in traditional credit cards with loyalty and rewards features within the next three years. That may be a reflection of other competitive threats to credit cards, such as digital payment alternatives like PayPal and Venmo and initiatives by the Federal Reserve, Bitcoin.com said.

Other Competitive Threats

“This is in addition to one in four banks that see a real possibility of a competitive threat posed by consumers banking in the U.S. Federal Reserve initiatives, such as FedNow real-time payments,” Bitcoin.com added. “The potential creation of a digital dollar is also seen as another possible competitive threat.”

Meanwhile, the study also found the possibility of big tech firms muscling their way into the financial services industry to be a key worry for banks and insurers. As shown in the data, about “six in ten digital insurers worry that those forays are a competitive threat.”

On the other hand, almost half of all banks, or 47%, expect big tech to become a major competitor within three years. The findings also show regional banks to be the most worried at 64%.

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