Financial institutions across Europe are significantly underestimating demand from business and private investors for access to cryptocurrency, according to a new report from digital asset infrastructure provider Bitpanda Technology Solutions.
Produced in partnership with zeb Consulting, the new Bitpanda report highlights that a significant amount of private (27 per cent) and business investors (56 per cent) believe that crypto will become more relevant over the next three years.
Through a survey of over 10,000 respondents across 13 European countries, Bitpanda aimed to holistically analyse crypto adoption among retail and business investors across Europe and match that insight with in-depth qualitative insight from financial institutions (FIs) about their adoption and future plans.
Additionally, more than 16 per cent of private investors and more than 40 per cent of business investors are already invested in crypto, with a further 12 per cent and 18 per cent, respectively, planning to enter the market soon.
Despite this growing demand, the FIs surveyed as part of the report state that only 19 per cent of their client base show a high demand for crypto products suggesting that they underestimate the actual adoption of crypto by private investors by more than 30 per cent. This highlights a key opportunity for early adopters, who are willing to respond to rising demand.
Lukas Enzersdorfer-Konrad, deputy CEO of Bitpanda, commented: “The data is clear, both business and retail investors are ready for crypto, and they expect secure, regulated avenues to participate. Financial institutions that delay integrating crypto services risk losing revenue to their competition or crypto native companies. With MiCAR providing regulatory clarity, the time to act is now.”
Growing awareness
Rising demand is slowly being recognised by FIs across Europe, with 18 per cent of the FIs surveyed planning to expand their crypto service offerings. However, the most significant focus for these institutions is on expanding their service offerings in crypto transfers.
This limited scope for adoption is due to concerns around reputational risks (31 per cent), lack of knowledge within the business (21 per cent), and a lack of resources (14 per cent). This hesitation contrasts sharply with the behavior of business and retail investors, who are adopting crypto at a significantly faster rate than banks expect.
Enzersdorfer-Konrad added: “Lack of knowledge or resources is not a barrier for institutions that want to develop a crypto offering for their clients. Forty-seven per cent of surveyed FIs plan to offer crypto services through a white label partner such as Bitpanda Technology Solutions. By working with Bitpanda, FIs can deploy a fully customisable solution in as little as six months. Our tech, our expertise, our regulatory and compliance experience, our resources – all unlocking a new source of revenue.”
The report also highlights that FIs are increasingly looking to partner with regulated infrastructure providers to bridge the gap between demand and service availability. Solutions like Bitpanda Technology Solutions allow banks and fintechs to offer digital assets in a compliant and secure manner, meeting the needs of their clients without the burden of building in-house solutions from scratch.
The introduction of the EU’s MiCAR framework represents a critical turning point for traditional finance, removing many of the barriers that previously slowed adoption. The study suggests that banks that do not adapt risk missing out on one of the fastest-growing asset classes in Europe.
