Banks Risk Losing Market Share as Crypto Demand Grows in Europe

A new survey by crypto investment platform Bitpanda reveals that European banks and financial institutions may be underestimating the demand for cryptocurrency services.

A new survey by crypto investment platform Bitpanda has found that European banks and financial institutions may be underestimating the demand for cryptocurrency services.

Despite growing investor interest, fewer than one in five financial institutions currently offer digital asset products.

The study, which surveyed 10,000 retail and business investors across 13 European countries, found that over 40% of business investors already hold cryptocurrencies, and another 18% plan to invest soon. However, only 19% of financial institutions reported strong demand for crypto products from their clients.

This disparity highlights a 30% gap between actual investor adoption and the perceived need for crypto services.

While 80% of financial institutions acknowledged the growing importance of crypto, only 19% currently offer such services. Among those offering crypto products, services like crypto transfers were in high demand, indicating that institutions are beginning to respond to the shifting needs of investors.

However, the main barriers to adoption were not external factors like regulation but internal issues such as a lack of resources and knowledge, according to Bitpanda deputy CEO Lukas Enzersdorfer-Konrad.

“Financial institutions should be able to track revenue outflows to understand the real demand for crypto services,” Enzersdorfer-Konrad stated.

The survey also found that 27% of respondents would prefer to invest in cryptocurrencies through traditional banks, compared to just 14% who would choose a crypto exchange. Among business investors, the preference shifted towards exchanges (36%) over traditional banks (27%).

This finding suggests that offering more crypto products through banks could drive higher adoption in Europe.

“Banks and financial institutions that fail to integrate cryptocurrency services risk losing significant revenue to competitors or crypto-native companies,” Enzersdorfer-Konrad warned.

With the EU’s Markets in Crypto-Assets Regulation (MiCA) providing regulatory clarity, the time for institutions to act is now, he added.

Additionally, 28% of surveyed institutions expect crypto to become more relevant within the next three years, further emphasizing the need for financial institutions to adapt to the evolving market.