Financial institutions’ (FIs’) blockchain and cryptocurrency implementation roadmaps are, in a sense, all over the map. FIs cite nine different factors as important drivers of these plans, according to Cryptocurrency, Blockchain and Global Business, a PYMNTS and Circle collaboration based on surveys of executives at 250 multinational businesses and 250 FIs.
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Among the most cited factors that are informing FIs’ blockchain and crypto strategies are the strength and weakness of current internal infrastructure (26%), the need to retain and attract customers (24%) and the potential for better data security (23%).
No single factor emerges as the most important for FIs, although the potential for greater operational efficiencies comes closest — 11% of FIs cite it as the most important factor informing their blockchain and crypto strategies.
The barriers blocking the adoption of blockchain and crypto also speak to a lack of clarity among FIs; just over 30% of FIs say the profitability of such products is unclear.
The next most-reference barrier was data security concerns, which 29% cited. One-quarter of FIs cited seven other barriers, including a lack of understanding blockchain and cryptocurrency services (27%) and a lack of certainty about demand (27%).
Additionally, significant shares of FI decision-makers lack a firm understanding of cryptocurrency and blockchain technologies. Just 31% of FI executives believe leaders at their firms understand the technologies “very” or “extremely” well. The vast majority — 64% — believe decision-makers understand them only “moderately” well.
These data points suggest that there is a need for sound education and guidance for FIs’ decision-makers in order to solve these issues. If FIs want to become a crucial on-ramp to blockchain and cryptocurrency services for corporate and governmental organizations, their first step is to ensure they have the right education and strategies.
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