One of the most compelling reasons for financial institutions to offer digital assets is also one of the most basic: market demographics. The strongest demographic for digital assets is nearly identical to the key demographic target for most financial institutions. This creates a perfect storm. You have an opportunity to attract this user base with one offering: digital asset storage.
Per a July 2022 Morning Consult report, as of May 2022, 17% of U.S. adults said they or someone in their household owns digital assets. Demographically, the owners tend to be men, high earners, and millennials (adults 25-44.) Gen Z adults (18-24) also show strong interest and growth in digital asset ownership. Both groups are likely to continue to be core elements of market growth.
In 2021, less than half of Gen-Z and millennials used the same financial institution as their parents. This is because younger adults routinely reject the banks their parents used. They want digital-first financial applications, not traditional checking accounts, car loans, and certificates of deposit.
Millennials and younger adults have had digital-first preferences their entire lives. They want financial services that are available 24/7 online and convenient to use. They don’t want to have to deal with inconvenient branches with limited hours. They gravitate toward online banks, fintech-based technology enhancements, and immediate gratification.
This is where digital assets come in. As they become more common, there’s greater expectation for traditional financial institutions to provide a reliable integrated digital asset solution for their customers. The rest of your assets are held at a credit union or bank; why not your digital assets as well?
Until recently, when a financial institution decided it was time to have a way for customers to buy, hold, or sell digital assets, they didn’t have many options. One approach for the FI would be to try to cobble together a home-made solution from scratch. These creations tend to be expensive and time-consuming to produce, and they generally don’t work well.
The other option would be to simply buy and install an off-the-shelf product. The limitation here is you’re stuck with whatever features and functionality the product offers. If you want or need any degree of customization to meet the wants and needs of your account holders, you’re out of luck.
In contrast, Sequoir has the ability to install its technology into the core digital experiences offered by community and regional banks and credit unions. This direct integration into the digital banking platform provides an easy-to-use, seamless banking experience.
“Financial institutions now have an excellent way to offer digital asset services to their customers or members. Plus, they don’t have to build one-off solutions from scratch. Our API-based platform means it’s easy to add new features and functionality as users’ expectations evolve,” says Justin Seidl, CEO of Sequoir.
And this means the account holders can experience the security of participating in this activity within their primary financial relationship. In the world of digital assets, what more could you want?
If you’re interested in what you’ve read and want to learn more specifics, contact Sequoir today. They can help your financial institution remain more relevant and take advantage of the digital asset revolution!
Based in Green Bay, WI, Sequoir is a leading provider of digital asset solutions to financial institutions. Sequoir offers pre-built integrations with digital banking solutions so users can buy, hold, sell, or borrow against digital assets. Sequoir also enables financial institutions to offer custom digital asset solutions to their customers or members by using its Rest APIs.