The most current set of American Banker forecasts for 2022 was released, and the findings of a survey of 175 senior banking executives from regional and worldwide financial institutions were unexpected. Before we get into the specifics of the study, it's important to note that American Banker magazine is widely considered as a reliable source of information on banking regulation, technology and innovation.
The following are the survey's main findings:
Interestingly, banks executives feel that how customers move money and the many payment choices available to them will be a significant emphasis this year as well, according to the report. It's no secret that banks battle fiercely to retain their clients and increase their "wallet share" by offering a variety of crypto buying and crypto selling services.
Auto bill payments, direct deposits, low-cost cash transfers and bank-branded debit or credit cards are among the services available. Not only can crypto projects perform all of these functions automatically and at a lower cost than banks at the moment, but blockchain-based financial transactions can settle in seconds rather than days.
Several credit cards also offer crypto incentives in the form of a percentage of the card's balance in the user's selected cryptocurrency. Banks that implement even a handful of these services will stand out from the competition – and the poll findings suggest that banks are looking for ways to gain a competitive edge.
While no one can forecast the future of any financial activity, the fact that global banks and lending institutions are seriously exploring increasing their cryptocurrency and blockchain alternatives this year is something that cannot be overlooked. Cryptocurrencies would have a bright future if they were adopted by huge financial institutions.