Best Cryptocurrency Exchange App

Banks Rush to Crypto to Keep Deposits

Banks Rush to Crypto to Keep Deposits
Written by publisher team

Although many consumers and financial professionals still view cryptocurrency as more than just a speculative tool, this perception is gradually losing steam as crypto gets better and pushed through the tailwinds of COVID-19, this mysterious medium of exchange. directed to the mainstream.

In a report published on January 10 by Karen Webster, CEO of PYMNTS, 2022 will be the year companies use a framework to separate activities motivated by the fear of losing [crypto] The Wave is a focused study of technology and its importance in solving the pressing payments and financial services problems faced by individuals and businesses today.

In clearing the encryption scene, chief NCR digital banking Doug Brown Head of Technology at NCRI Tim Vanderham See the opportunity. Despite the volatility of cryptocurrencies, Brown said: “With banks [and credit unions] We see … a lot of interest, and it follows that rhythm, moving from speculation to strategy to execution. Levels C is now engaged and focused on as they receive incoming inquiries and customer requests.”

To illustrate how quickly mentalities are changing, Brown and Vanderham told the story of a conversation the duo had with a bank executive in 2021 who rejected crypto outright. Within six months, the same executive called NCR inquiring how quickly they could work with encryption.

The current moment, Vanderham said, is “going into boardrooms to say this is something we can’t stay on the sidelines anymore, we need to move on. When you start thinking about this influx of money, it happens, it’s leaving their front door. If that’s Credit unions, these financial institutions want to be the trusted advisor to us as consumers or members of their institution, they need to be able to see the full landscape.”

This means being able to easily view your cryptocurrency balance from a checking or savings account and being able to use that money as with a debit or credit card. For banks, credit unions, and financial institutions, it’s time to make crypto decisions, as winners and losers diverge.

As Brown said, “We know that billions of dollars are leaving financial institutions to go to third-party wallet destinations. Indeed. The number of people holding cryptocurrency in the United States, depending on who you look at, ranges from 40% to 60% of the population, possibly This is why we’re so optimistic about it and why we want to solve the use case piece. It’s moving from a post-hype-hype-cycle to a more practical implementation phase.”

see also: 10 things that will define digital transformation in 2022

Banks are watching their wings

As NCR positions itself in the era of the pandemic and beyond, bringing crypto-currency innovations to banks and financial institutions that demystify their stored value for all stakeholders is an essential strategy. FIt was strengthened by its August 2021 acquisition of a coding software company LibertyXNow, the NCR network can support crypto transactions in ATMs, Point of Sale (POS) systems and cross-border transfers, making crypto holdings available and spendable for the average person while keeping banks and financial institutions (FIs) firmly in the loop from these transactions.

Vanderham said, “One of the reasons we acquired LibertyX was the idea that many Americans are transferring dollars to Brazil, Argentina, Dominican Republic, Philippines, etc. From an NCR perspective, is it more convenient for banks and retailers? How do we empower bank members or individuals who Is cashing their money at the merchant from transferring this money internationally as well?”

“Wherever the consumer is currently in the adoption process [curve], the one thing that cannot be denied is that consumers want to have it [crypto]And they want to get it from the name and brand they trust, which is their bank and credit union,” Brown added. “

NCR and others have one eye on ambitious crypto plans and the other on regulators.

“On a macro level, we are clearly watching what the SEC is doing, and what the FED is doing,” Vanderham said. “I met an SEC commissioner at a crypto conference in Austin just a month and a half ago. Having those conversations, working through the banks that are also in the lead, and how they go through the OCC type of reviews and approvals [is vital]. “

see also: NCUA Tells Cryptocurrency Trading Is All Right — If Big Exchanges Offer The Service

up and away

Acknowledging that banks’ involvement in crypto to date is essentially a wealth management and investment process, Brown — who bought holiday gifts with crypto in 2021 — noted that you “also start to see the growing use case model that Tim was talking about” with payments. And we get to the business side of the equation [where] It’s getting more common.”

Describing his own experience buying family gifts with cryptocurrency, he added, “It has been great for a nerd like me…but the point is…spending it. You start to see how that changes behavior and willingness to use it. And if there is no friction.” …I think this is when we will begin to see the expansion of its use and relevance for purpose of purchase.”

Moreover, he talked about the role of cryptocurrencies in the connected economy, which has huge potential. “We are expanding controllable access to banks and banking on both sides of the equation, with banks and then underserved populations,” Brown told Webster.

“This is the very exciting thing from our point of view as it makes room for the expansion of banking into the commercial space with other retailers and brands.”

With merchants, restaurants, banks, financial institutions, credit unions and consumers all asking for guidance on how cryptocurrency affects them, Vanderham said, “If we can educate them, if we can help them figure out how to implement it and know that with a trusted provider, it will put all consumers to sleep. Better at night than to go and find out for themselves.”

see also: Crypto crimes up 79% vs. transaction volumes up 567%


New PYMNTS data: Documenting identities in the digital economy – December 2021

on:More than half of American consumers believe biometric authentication methods are faster, more convenient, and trustworthy than passwords or PINs – so why do less than 10% use them? PYMNTS, in collaboration with Mitek, surveyed more than 2,200 consumers to better define this perception versus the usage gap and identify ways companies can boost usage.

About the author

publisher team