The Advantages For Financial Institutions Offering Wallets In the Decentralized World of Finance
In the increasingly digital and decentralized world of finance, firms that offer their users digital asset wallets can achieve significant advantages against others in the market. With recent market turmoil and dips, and trust in traditional banking systems wavering, people are exploring alternative means of managing their money.
Here are six reasons why offering crypto wallets can benefit financial firms:
1. Potential for Growth: Crypto applications have proven resilient in periods of traditional market downturns. Recent dips or crises have seen a steady increase in crypto app adoption. The top 10 crypto applications for exchanges and wallets saw a 15% increase in downloads following Silicon Valley Bank’s stock drop a few months ago.
The importance of expanding capabilities to include more than just trading has become significant with new decentralized applications (dApps). The needs of the users are expanding beyond just speculating on assets to include gaming, NFTs, DeFI, and more.
By embedding digital asset wallets into their applications and attracting a wider user base, firms can capitalize on both of these trends.
2. Decentralization: There is a trend towards decentralization as more users want to be in control of their funds. Cryptocurrency wallets offer a level of security that is appealing to many users. Transactions are encrypted and often decentralized, reducing the risk of hacking or other fraudulent activities. In a world where privacy and data security are paramount, offering a crypto wallet can increase a firm’s credibility and trustworthiness.
3. Fostering Innovation: The world is moving towards digitization and decentralization. Providing crypto wallets puts firms at the forefront of what’s next in finance. It demonstrates they’re not just keeping up with the times but actively participating in and driving the digital revolution. Not only can it attract individual users but also potential partners and investors who value innovation.
4. Financial Inclusion: Wallets can offer an avenue for financial inclusion, especially in regions where access to traditional banking is limited. By providing a wallet, firms can extend their services to these individuals, thereby expanding their market reach and potential user base.
5. 10x Customer Experience: Lead your industry with a 10x customer experience beyond the status quo.
Wallets give users the ability to manage different cryptocurrencies in one place. They can easily buy, swap, or sell crypto, providing a flexibility that many traditional banks cannot match. Users can access their wallet at any time and from any place, which enhances their convenience and experience.
People have started to consider crypto an alternate asset class on par with traditional investments, so having a single provider would improve the customer experience and prevent them from going elsewhere.
6. Diversification of Revenue Streams: Firms that offer wallets can diversify their revenue streams. They can earn from transaction fees, service fees for premium features, or even partnering with other fintech companies for cross-promotion.
In conclusion, as we continue to see growing interest in and adoption of digital currencies worldwide, offering wallets is a strategic move that could benefit firms significantly. Not only does it meet a growing market demand, but it also places the firm at the forefront of financial innovation, a position that could be extremely advantageous in an increasingly digital future. Portal is transforming financial services and institutions to become antifragile and accelerate into the new global blockchain economy. Partner with us today!
