Most EU Banks Are Still Shunning Cryptocurrencies Despite The Demand

A recent study by Bitpanda reveals a significant gap between the offerings of European financial institutions and the actual needs of crypto investors. Less than 20% of banks currently offer services related to digital assets despite a strong increase in demand.

A considerable gap between the demand and the supply of crypto services

A survey conducted by Bitpanda among 10,000 investors across 13 European countries reveals a striking gap. More than 40% of institutional investors already own cryptocurrencies, and 18% plan to invest in them soon.

Despite this enthusiasm, only 19% of European financial institutions offer services related to crypto assets.

This gap is all the more significant as banks considerably underestimate their clients’ interest. Only 19% of institutions surveyed claim to perceive a strong demand for crypto products, revealing a perception gap of 30% compared to actual adoption.

The study also demonstrates that 27% of individuals would prefer to invest in crypto through their traditional bank rather than through specialized platforms. This preference represents a significant business opportunity that the majority of banking institutions continue to overlook.

European banks face a risk of revenue loss

According to Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, the barriers to crypto adoption by banks are mainly internal and not regulatory.

Financial institutions in Europe recognize the sustainability of cryptocurrencies, but the majority still do not offer services suited to investor demand, he explains.

The lack of resources and knowledge is the main obstacle within banking institutions. This situation exposes them to a real risk of losing revenue to more agile or specialized players.

Currently, 36% of professional investors already prefer dedicated exchange platforms for their crypto operations.

In light of this observation, 118% of financial institutions are considering expanding their crypto services, particularly in the area of transfers. Furthermore, 28% of the surveyed institutions anticipate a growing importance of cryptocurrencies in the next three years.

With the entry into force of the European MiCA regulation providing a clear legal framework, European banks face a crucial choice: adapt quickly to the new expectations of their clients or risk having their revenues captured by more responsive competitors.