Börse Express – OTS: Simon-Kucher & Partners / The crypto market on the way down: With momentum to …

The crypto market is in decline: with momentum to the next high

Cologne (ots) – Chaos reigns in the crypto market. Digital currencies register more

low than high flights; interest in developing crypto-based products

and Services are turned off. However, one thing is clear: there have been previous crypto winters

always replaced by a crypto spring where the price growth

returns. So how should banks and financial service providers deal with the current crisis?

meet to be well equipped to start the next high phase? Max Biesenbach

and Simon Grabbe from the global strategy and marketing consultancy Simon-Kucher

& Partners explains:

Turbulent times in the crypto market. It wasn’t until early summer that many people looked

digital currencies, including crypto giants Bitcoin and Ethereum

some historic lows. Also Bitcoin amid recent uptrend

August is now over (https://www.manager-magazin.de/finanzen/bo


0c8-f41a-4bd1-a94b-612145690007). Price drops, liquidity problems and

Massive layoffs (https://www.businessinsider.de/gruenderszene/finte

ch/bitcoin-crash-bitpanda-lays-off-hundreds-of-employees/) – the demand for

Crypto has fallen sharply in recent months and various market participants with it

large crypto exposure faces existential problems.

Nevertheless, recent years have shown that we are in crisis

definitely chances. Three reasons why it makes sense in the middle of the stream

Look for these turbulences and how banks and financial service providers are faring

prepare for a new high:

Cryptocurrencies are rapidly gaining reach: over 300 million people

around the world use cryptocurrencies. Blockchain.com

(https://www.blockchain.com/wallet) alone has more than 84 million

Created crypto wallets that allow customers to buy, sell and

can serve. In all likelihood, the number of wallets will continue to increase rapidly

rise, as long as there is not a comprehensive regulatory ban, such as since

2021 in China (https://www.faz.net/aktuell/finanzen/chinas-verbot-von-crypto-anl

agen-bitcoin-is-unfazed-17557892.html), enters.

So far, banks have hardly participated financially: they are still lying

an estimated one to two trillion dollars outside the banking system

cryptocurrencies. The collective loss of potential fee and

The earnings spread for the global banking system follows expert estimates

in billions. Crypto wallets also have the potential to attract banks

part of the business in the payment value chain

to make and so also for billions in future lost revenue


Banking clients are increasingly asking about crypto as an asset class: last but not least, expect

more and more securities customers from their banks in which they invest

Provide cryptocurrency and related advisory services. Business is up

due to the high volatility often in contrast to the risk-averse image of

banks, so the vast majority of demand has come from “new market entrants”

is served.

For banks and financial service providers, the task now is to introduce an appropriate one

Review the crypto supply to prepare well for the next boom

head to. The following questions must be asked:

1. Which product and industry is best suited for

Introducing a crypto offering? Here it is important to consider whether, for example,

provision of wallets within asset management, trading with

Cryptos in the retail sector or tokenization of assets in

Corporate and Investment Banking should be promoted.

2. Does the target group express an economically relevant need

Crypto deals? A German private bank recently estimated a short-term

Inflow of funds of ten million euros in a new issue

Asset class – too small opportunities for a profitable business model.

3. Must customers invest directly or indirectly, e.g. via funds, in crypto

can invest? The financial advantages and disadvantages must be clear

weighed against each other.

4. “Make, buy or partner?” Strategic partnerships can also be used

Realize crypto offers for customers (for example: collaboration between N26

and Bitpanda (https://finanz-szene.de/fintech/n26-kooperiert-bei-seiner-krypto-o

offensive-with-bitpanda/) ).

Even if the focus on crypto is counterintuitive at this point

may emerge, banks are currently faced with a unique opportunity:

Crypto talent is available and crypto companies are open to partnership.

Simon-Kucher & Partners, Strategy & Marketing Consultants: Simon-Kucher is a

Global management consultancy with over 2,000 employees in 27 countries

worldwide, which drives revenue and growth for their customers

their pricing, sales and marketing strategies optimized – long-term and

consistent. Advised with over 35 years of monetization and pricing experience

Simon-Kucher teams of experts worldwide from companies of all kinds and from

different industries.

We are at your disposal for questions and detailed information


Julia Griep (Public Relations Manager)

Phone: +49 221 36794 486

Email: julia.griep@simon-kucher.com


Additional material: http://presseportal.de/pm/78805/5320847

OTS: Simon-Kucher & Partners

AXC0147 2022-09-14/12:02

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