Bitpanda Technology Solutions conducted a new survey revealing that European financial institutions are underestimating the strong demand for access to crypto. The underestimation by financial institutions is 30%. Private and retail investors seem to be ready to enter this market, but the crypto-based products offered are still too few.
Bitpanda and the survey: European financial institutions underestimate the crypto sector
European financial institutions are underestimating the crypto sector, offering few access products to this market compared to the strong demand from private and retail investors.
To say it is the new report by Bitpanda Technology Solutions and Zeb Consulting, who conducted a survey on over 10,000 respondents in 13 European countries.
The data shows that while on one hand there is awareness among investors that the crypto sector will become increasingly important in the future, on the other hand there is a significant lack on the part of financial institutions in integrating new crypto-based products.
Specifically, private investors (27%) and corporate investors (56%) widely agree that cryptocurrencies will become increasingly important in the next three years.
Not only that, over 16% of private investors and over 40% of corporate investors have stated that they have already invested in cryptocurrencies, while an additional 12% and 18% respectively are planning to enter the market soon.
At the same time, however, the financial intermediaries interviewed state that only 19% of their client base shows a high demand for crypto products.
This data suggests that banks and financial institutions underestimate by over 30% the actual adoption of crypto by investors.
Bitpanda: financial institutions and the limited knowledge of the crypto sector
The survey data continue to show how European financial institutions intend to act to open their doors to crypto.
In fact, it seems that 18% of the interviewed credit institutions plan to expand their offering of cryptocurrency services.
Despite this data seeming positive, it appears that such crypto services arriving are focused only on cryptocurrency transfers. This means that European financial institutions remain centered on the increase of AUM, instead of on satisfying the growing demand for retail services.
In this regard, Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, commented:
“The data is clear: both commercial and retail investors are ready for cryptocurrencies and expect safe and regulated ways to participate. Financial institutions that delay integrating cryptocurrency services risk losing revenue to the competition or native cryptocurrency companies. With MiCAR providing regulatory clarity, the time to act is now.”
Other data shows that what holds banks back from adopting crypto with new regulated products are 31% concerns related to reputation risks, 21% the lack of knowledge within the company, and 14% the lack of resources.
Enzersdorfer-Konrad also emphasized that many financial institutions (47% of respondents) are willing to offer crypto services through a white label partner, just like Bitpanda Technology Solution.
The MiCA of the EU and the challenges of European banks
At the beginning of January 2025, in the EU, came into effect the MiCA (Market in Crypto-Assets) regulation.
This regulation is a guide on which le banche europee can rely to proceed with offrire servizi legati alle crypto.
In general, for the financial sector, the adoption of crypto represents an opportunity to diversify offerings and a means to attract a new generation of investors, increasingly attentive to digital innovations.
Obviously, behind every new opportunity lies a new challenge to be faced.
In fact, in this sense, European banks must be able to educate the public, survive the competition from fintech and DEX, and adapt their systems to the technological infrastructures required to support crypto.
