Blockchain and Crypto, Sponsored

Navigating cryptocurrency: Understanding the market and demand

  • Consumers are clearly interested in holding cryptocurrency, and evidence shows they’re particularly interested in holding it with their trusted financial institution
  • Providing cryptocurrency solutions can be a valuable tool for attracting consumers and gives financial institutions the tools to grow noninterest income

Email a Friend

Navigating cryptocurrency: Understanding the market and demand

This is part one of a three part series by Fiserv promoting their latest point of view paper, Three Cryptocurrency Actions for Financial Institutions.

Understanding the cryptocurrency market

According to, nearly three-quarters of consumers view cryptocurrency as an investment opportunity. Consumers aren’t viewing cryptocurrency solely as an investment, however. The study also found 60 percent of current and former holders want to transact with it. 

Younger and middle-income individuals currently make up a significant percentage of cryptocurrency holders. The report indicates that 19 percent of millennials and 16 percent of middle-income consumers, defined as those earning between $50,000 and $100,000 per year, currently own cryptocurrencies. On the whole, the report shows that approximately 12 percent of all U.S. consumers, a projected 30 million Americans, own cryptocurrency. 

Additionally, emerging evidence shows that cryptocurrency may be a more accessible investment than traditional stock market vehicles. According to a July 2021 study from NORC at the University of Chicago, there are considerable demographic differences between cryptocurrency and retail stock traders. The data indicates that cryptocurrencies may open and diversify investing opportunities for women, investors of color and investors with annual household incomes below $60,000. 

As cryptocurrency acceptance has risen, consumer preferences have emerged for accessing and interacting with cryptocurrency through their financial institutions. According to a January NYDIG report: 

  • Fifty-one percent of non-bitcoin holders want to learn more about bitcoin through their financial institution 
  • Eighty percent of bitcoin holders would choose to store it with their financial institution if offered.

Understanding cryptocurrency demand

Those findings, from multiple sources, indicate that cryptocurrency solutions offer a valuable opportunity for financial institutions to embrace and meet consumers’ emerging needs, especially those of younger and broader consumer segments including women, people of color and lower income individuals. 

Financial institutions can leverage the trust accountholders have in them and provide their customers or members an avenue to participate in this ever-evolving industry. Providing educational materials to help consumers learn about cryptocurrency and explore ways to buy, hold and sell cryptocurrency are two ways financial institutions can signal to consumers that their financial institution is committed to meeting their needs in this new space. 

Furthermore, providing cryptocurrency solutions for consumers can boost financial institutions’ bottom-line results by increasing noninterest income through fees charged on cryptocurrency services. Cryptocurrency solutions can offer a valuable revenue stream for financial institutions in the current low-interest rate environment, which is projected to endure for the foreseeable future. 

To date, many cryptocurrency use cases have centered on holding it as an asset, but it’s critical to think about second- and third-level effects as consumers begin to accumulate cryptocurrency. As amounts build, so will the need to transfer cryptocurrency to family and friends and use it to purchase items. 

The report shows a healthy appetite among U.S. consumers for using cryptocurrency to make purchases:

  • Ninety-three percent of cryptocurrency owners would consider making purchases with it in the future 
  • As many as 46 million consumers (18 percent of the adult population) would consider using cryptocurrency for retail purchases, regardless of whether they currently own cryptocurrencies

For more insights and action items for financial institutions and businesses navigating the cryptocurrency venture as it gains popularity, download Fiserv’s latest point of view paper.

0 comments on “Navigating cryptocurrency: Understanding the market and demand”

Outlier OpinionsMakers

Sponsored, The Customer Effect

Voice of the Customer: How “active listening” drives meaningful consumer engagement

  • Successful bankers act on feedback from their customers in relation to in-person or digital experiences, as consumers hold the key to improving how financial institutions conduct day-to-day business.
  • Today’s consumers have very little patience for financial institutions that do not place them at the center of the customer journey. Ignoring feedback from critical customer journey key points can drastically impede customer acquisition and retention.
Argo | January 19, 2023
Banking, Sponsored, The Customer Effect

How one bank is successfully building deeper customer relationships through digital customer engagement

  • Despite the gains in convenience and capability that digital channels offer, bankers and their customers are missing the relationship aspect of banking. People still want to connect with people.
  • Banks are now shifting their thinking beyond simple “digital transformation” toward “digital customer engagement” and how to leverage the digital channel to support more meaningful customer interactions.
Agent IQ | January 03, 2023
BNPL, Sponsored

How financial institutions can design a balanced BNPL solution

  • Current BNPL solutions have been better at facilitating the "buy now" part than fulfilling the "pay later" aspect.
  • Financial institutions have access to valuable insights that they can use to better understand consumers and tailor BNPL solutions to their specific needs.
equipifi | December 19, 2022
Data, Sponsored

How marginal improvements in data strategy can yield tremendous results

  • The truth is brutal: data is hard, and most people don’t understand it.
  • Here's how marginal improvements to a company's data strategy can have a profound impact.
Quantalytix | December 14, 2022
Sponsored, The Customer Effect

Mobile banking outlook for 2023: Why push notifications are more important than ever

  • Mobile banking usage is quickly growing in popularity as account holders are afforded 24/7 access to their finances and enhanced ease of use.
  • Push notifications enable financial providers to take advantage of this surge by driving account holders to their mobile banking apps and increasing customer engagement.
Larky | December 02, 2022
More Articles