Swiss banks underestimate the thirst for crypto knowledge

Whether old or potential crypto investors – both customer groups want more support from their banks in the crypto space. Swiss investors also expect offers of crypto education from traditional financial institutions.

Education is important, especially in the often confusing and complex crypto jungle. However, established financial institutions currently seem to underestimate how important education can be as an integral part of a crypto service and as a value driver. This is according to a study carried out by the Swiss bank IT company Crealogix.

According to the study “Crypto and established financial institutions”, cryptocurrencies provide an opportunity to strengthen customer loyalty and win new customers. But banks may be focusing too much on the target market and not incorporating customer needs and expectations into their plans, the study authors commented. Crealogix surveyed 801 investors and 150 banks and asset managers in Germany, Switzerland and the UK.

Customers want support

Regardless of their level of knowledge, educational offerings are valued by both potential and already knowledgeable crypto investors. As such, 70 percent of respondents – both current and potential crypto investors who are most likely to use traditional providers – expect crypto education and information as part of the service.

Such offers are especially important when attracting new investors to cryptocurrencies. Because lack of sufficient knowledge is cited by more than half of those interested in cryptocurrencies as the biggest obstacle to getting started with investments. At the same time, guidance and support for new investors can help strengthen relationships and improve investor confidence in diversifying their portfolio.

Revolut does it

The study authors mention, among other things, the success of the “Learn & Earn” function in the British fintech company Revolut, which has already attracted 1.5 million users. This shows that education is an effective way to attract new customers. According to the survey, education is listed as an essential part of crypto services for potential investors, along with basic features such as a transaction summary and history.

Swiss investors are crypto-savvy

The survey also shows that 55 percent of respondents are currently investing in cryptocurrencies. More than two-thirds (67 percent) of these crypto investors also invest in stocks. This suggests a balanced portfolio and a balanced investment approach. In Switzerland, the share of crypto investors is the highest at 67 percent, in Germany it is less than half at 45 percent.

According to the survey, Swiss investors are significantly more interested in newer, digital investments than their German counterparts. For example, German crypto investors are more likely to invest in stocks, ETFs and commodities. Swiss crypto investors were most likely to invest in NFTs at 31 percent compared to just 12 percent in Germany.

Exclusively mass market an opportunity for Swiss banks

The market segment most likely to appeal to established companies in Switzerland is the upper mass market (10,000 to 100,000 francs). This is a great opportunity for Swiss financial service providers as it is a broad target audience with significant potential for long-term business growth with crypto services.

According to the study, this approach can be particularly profitable for banks, since the wealthy mass market (100,000 to 1 million francs) is the segment most likely to buy crypto offerings through traditional banks: more than 60 percent of crypto investors want traditional ones using banks.

What types of stocks will provide the highest returns in the near future?

  • value shares

  • growth stocks

  • Small and mid caps

  • dividend shares

  • No shares at all

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