This time, you might not need a separate platform to engage in crypto transactions. You can engage in crypto trading through your local bank. Thanks to the initiative of some cryptocurrency firms that made all this possible. Learn why banks are now into the crypto exchange with these concepts.
Added Value on Top of the Product Portfolio
Banks sure have a product portfolio that is more or less similar to its many other competitors. They would offer deposits, special-time deposits, loans, credit cards, and the like. Most of them have brochures virtually containing the same offers. For a change, it might just be a competitive advantage for one to offer crypto exchange services. It would be a breath of fresh air for banking institutions to delve into something new after years of traditional banking operations.
While crypto trading might be something new, it is not considered a new product that the bank will offer. Instead, it is an extra service available to its depositors interested in the crypto exchange. It can be a part of the bank’s product differentiation strategy that could make it more competitive among others. To be able to gain a strategic edge, the bank will have to ensure that operations run smoothly. Otherwise, it might only mean trouble, which is not good for business.
With the additional services, the bank will have to prepare for additional costs. It would also imply additional support to handle technical assistance 24/7. The bank must be able to perform at par with crypto trading entities.
At the end of the day, clients can always seek refuge from their go-to crypto exchange, such as CFD Trader.
Retain Customers, and Encourage More
So banks might have been losing deposit accounts to digital wallets. Given the investment opportunities offered by crypto trading, some may have almost emptied their savings account in the bank. The money might have been stored in a virtual wallet, ready in case prices are low, which would signal investors to buy coins. When money is readily accessible from your digital wallet, you can instantly hit buy to grow your digital currencies. Chances are that you would also lessen your spending on transaction costs.
If banks could provide a crypto exchange platform directly linked to your account, there would be no need for you to make a fund transfer to buy coins. That would result in an even higher rating of liquidity for cryptocurrencies. Clients could easily transfer their coins into their savings accounts as soon as they decide to sell the coins.
This setup is expected to help banks retain their customers, especially those who are into crypto trading. In the same way, it is also intended to encourage new customers to do crypto trading with the bank by opening an account. It is like hitting two birds with one stone which is definitely not that bad after all. The challenge would be to sustain the constant entry of new clients while keeping the ones already booked.
An Opportunity to Generate More Income
Without a doubt, cryptocurrencies have brought income opportunities not only to investors but also to crypto exchange firms. And banks are now set to seize the same opportunity to bring in more income. The latest news reports hint that small and huge banking institutions are set to offer crypto trading platforms.
Perhaps banks have also been encouraged to take chances in this endeavor by government regulations giving cryptocurrencies a reasonable expectation of legitimacy. Like any other trading platform, banks are also expected to comply with any registration requirements implemented by the government. It can be recalled that several countries have mandated crypto exchange entities to register with the authorities.
Major banking institutions have officially announced their interest in trading Bitcoin, such as Standard Chartered, Citigroup, and Morgan Stanley. The rest may follow suit real soon, although some may not including HSBC. For more information on this news, you may want to read this article.
Conclusion
Of course, there are many other reasons why banks have considered offering crypto exchange services. These are only some of the more compelling ones that you may encounter. Feel free to discover more about cryptocurrencies with an ounce of caution each time.
Related Articles
- Best Crypto Exchange: Top 10 in Different Categories by Reviews
- BEST CRYPTO EXCHANGE WITH LOWEST FEES: Top 11+ (Updated)
- Crypto Exchange: How to Pick the Best & Safest Options
- Product Launch Strategy [10 best strategies with guide]
- TRADITIONAL BANKS: Definition, Differences Between Online & Traditional Banking
