US financial advisors expect a 60% rise in crypto clients. Following the release of a new poll by the Financial Planning Association of America (FPAA). The number of financial advisers who are already advising crypto holding customers. It is expected to rise from two out of ten (or 20 percent) today. To 44 percent by the end of 2022, representing a significant increase. From the current figure of two out of ten (or 20 percent).
As revealed by the findings of a recent study, the number of financial advisors. In the United States now coaching their customers on cryptocurrency investments is predicted. To more than triple from the current level of representation by 2022.
These predictions are in accordance with the findings of a poll of wealth management specialists. In the United States, which revealed that an increasing number of clients (about 33 percent). Are expected to become cryptocurrency holders by the end of 2022. The investigation that resulted in this article was carried out by Reuters.
According to the results of the Arizent Research 2022 Prediction poll. Which received responses from a total of 153 persons, many financial advisers anticipate. That the number of consumers who own cryptocurrencies will increase in the future. Participants in the survey, which was conducted online. Provided responses in the form of 153 responses in total.
153 persons participated in the survey, which received an overwhelming number of positive responses. From those who took part. In accordance with the conclusions of this study. Present consumer demand for cryptocurrencies is not decreasing. With only 4% of those who participated in the poll anticipating a decline in this figure.
Other Competitive Threats of US Financial Advisors
Instead, the findings demonstrate that cryptocurrencies. Which now regularly covered by the financial press. “Are [now] a huge theme in investing circles,” according to the researchers. However, according to the study’s findings. The rise in popularity of cryptocurrencies has added to banks’ list of concerns. That already includes the danger presented by fintech and payments firms. As well as the possibility of a U.S. digital currency introduced. The following is explain in the study report:
Only four out of ten banks expect to also boost their investment in standard credit cards. With loyalty and rewards features during the next three years, according to the Federal Reserve. Another competitive challenge to credit cards. Such as digital payment options like PayPal and Venmo. As well as measures by the Federal Reserve. May reflected in this shift in sentiment.
Moreover, Aside from the fact that one in every four banks believes that consumers banking in the United States. Poses a real risk of competition, the Federal Reserve’s initiatives. “Such as FedNow real-time payments, a faster and more secure alternative to traditional wires and ACH transfers.” Are also of concern. Another potential competitive threat is the introduction of a ‘digital dollar’ currency. Which could used to purchase goods and services online.
Large tech businesses squeezing into the financial services industry
Large technology businesses attempting to impose also their will on the financial services sector. It is a major cause of anxiety for banks and insurers. According to results of a survey conducted by Mercer. As stated in the survey. Approximately “six out of every ten digital insurers are afraid that those forays will constitute. A competitive challenge” to the functioning of their respective companies’ businesses.
Banks on the other hand believe that Big Tech will become a significant competitor. Within three years, according to more than half of all banks (47 percent). According to the study, regional banks are the most concerned about the future of their operations. With also 64 percent expressing anxiety about the future of their businesses.