The survey uncovered the extent to which bankers are invested in the new technology both personally and corporately.
The data appears to show banks are more invested in blockchain technology in more ways than previously known. Bankers are increasingly personally invested in cryptocurrencies despite reservations around trustworthiness. While only 45 percent of bankers believe cryptocurrencies are always trustworthy, 61 percent are personally invested currently with 75 percent likely to invest in the future.
“A year ago, major banks dismissed crypto. Today those same institutions have crypto as their top investment recommendation. Coinbase was founded in 2012 and is now worth more than Goldman Sachs, an investment bank that launched in 1869,” said Former Presidential Adviser Dr. Pippa Malmgren. “Bankers are also investing personally and professionally in blockchain. This technology underpins cryptocurrencies by allowing transactions to be easily verified and authenticated. Some see a dangerous bubble forming in crypto and blockchain. The upward price jumps in value are also evidence of tremendous innovation in money itself.”
The study suggests blockchain solutions are poised to modernize the sector with 82 percent of banks invested in the technology and 88 percent believing it will have a positive impact on the financial services industry.
“Finance and banking are currently facing a series of challenges not only from the pandemic and the growing number of cyberattacks but also from uncertainty and a lack of understanding relating to cryptocurrencies,” said Matt Robbins, Vice President, Research and Insights at LEWIS. “Our research indicates blockchain has the potential to impact multiple industries but could transform financial services by helping to rebuild trust with consumers.”
The report suggests that the benefits of blockchain could help close the growing trust gap with the public and renew confidence in financial institutions. The following top three benefits of using blockchain were identified by over 80 percent of respondents:
- faster transaction times
- greater security
- increased transparency
“While fortunes can be made speculating in crypto, blockchain, and other forms of decentralized finance all these technologies are quickly becoming part of mainstream finance,” added Malmgren, President G.W. Bush’s adviser after the dot-com crash. “Heavy speculation usually accompanies radical innovation”, she added.
The Banking on Blockchain report is based on a survey conducted by the LEWIS Research and Insights team to gain a deeper understanding into the future of blockchain and cryptocurrency. The survey was fielded from March 24th – March 26, 2021 and captured responses from full-time employees in the banking industry located in the United States. A total of 501 respondents were captured and the overall margin of error is 4.32% at a 95% Confidence Interval. The respondents were sourced from Logit Group.