ST. PETERSBURG, Fla.–More than half of credit union leaders are less than enthused about providing cryptocurrency products to their members.
A new report from PYMNTS and PSCU, “Credit Union Innovation: Bridging the Cryptocurrency Divide,” has found 56% of CU leaders reporting they are wary of crypto-offerings for a variety of reasons.
The report is being released at the same time 31% of U.S. consumers say they currently own crypto, with those who do tending to “take crypto into consideration when making a host of financial decisions, including where they bank,” PYMNTS said.
“This points to a potential disconnect between what some credit union members want, and what some credit union executives plan to deliver,” the company said in releasing the findings. “Observers believe that the more consumers are educated about crypto’s possibilities, the more willing they may be to experiment with crypto products. Half of consumers (50%) say that one reason they do not use cryptocurrency is because they know so little about it.”
Why Execs Are Wary
But credit union executives don’t appear to be convinced.
PYMNTS and PSCU said the survey found many credit union leaders are wary of offering cryptocurrency because of its volatility (66%) and relatively weak penetration of digital assets as a payment method (50%).
There is also a sense that cryptocurrency is a passing fad (43%), and that there is not yet enough information to determine whether investing in crypto will be worth it (25%), the analysis further found.
According to PYMNTS, its data show that across certain measures, the reluctance of credit union executives to market crypto products and services is only increasing as time passes.
Wariness, But Appeal Remains Strong
“For example, in the beginning of 2022, 56% of credit union executives cited crypto’s volatility as a factor in their reluctance — a percentage which jumped to 66% by the end of the year,” PYMNTS said. “Similarly, 42% of executives cited a general lack of marketplace acceptance of digital assets as a form of payment as a factor in their reluctance to offer crypto products and services to members in Q1 2022.”
The report further noted that at the end of the year, after Q4 2022, the share of credit union executives saying the same jumped to exactly half, or 50%.
“Still, crypto’s appeal to its core audience remains strong. Nearly six in 10 Millennials and Bridge Millennials in the U.S. (59%) hold or have held cryptocurrency, making them the age group most likely to have owned digital currencies,” the company added.
For additional info: Credit Union Innovation: Bridging the Cryptocurrency Divide
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