The 2022 KPMG State of Banking Survey features insights from 100 senior executives. This article shares the findings related to digital assets and crypto services.
Cryptocurrencies and other digital assets, while still considered nontraditional, are no longer fringe instruments. Consequently, more individuals in the banking industry must understand them and why customers increasingly want to possess, trade, transact with, and custody them.
When we asked survey respondents about the digital assets they are now providing, or planning to provide to customers, almost all, or 92 percent, said their banks are now offering or are planning to offer blockchain processes to their customers. Most, or 85 percent, said the same when it came to digital wallets. Respondents said their banks are already offering or planning to offer:
Crypto bank accounts
Non-fungible tokens (NFTs)
Blockchain processes (e.g., smart transactions, transparency, trust)
KPMG audit partner Robert Sledge suggests that “banks that stay on the sidelines when it comes to crypto assets and other digital assets may be missing an important moment—so long as they enter the area with a carefully planned strategy.’’
With such a majority, Sledge emphasized that “deciding what digital asset products and services to offer customers is critical,’’ although some banks may want to enter into partnerships with other organizations that have more knowledge and experience with digital assets. At the same time, banks will need to weigh the resources needed to enhance their custody models, which may not have been built for this asset class.
In addition, Sledge said “going forward, maintaining trust will be essential to attract and retain customers’’ who want to use and invest in digital assets, and that “banks must clearly demonstrate that their digital assets services operate in compliance with relevant laws and regulations and receive clean audits and attestations (e.g., SOC reports) from independent auditors, as necessary.’’