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Cryptocurrency, Featured, Finance

Crypto’s Relevance in the Future of Financial Planning

With its rapidly growing prominence across geographies and industries, cryptocurrency is poised to become an integral component of financial planning in the future. It has already proven its worth for being an apt addition to the practices of financial services, especially when one is trying to maintain and grow the business. 

Over the years, if you study the market and consumer behavior then a gradual change of attitude towards cryptocurrencies becomes quite evident. There have been significant changes in the investment habits, needs, styles, and goals across demographics, with a significant percentage of the population finding it appealing. The Millennials, Generation X and Z people, who have grown up in the internet era, are quite used to the concept of on-demand services, and clicking on their smart devices to fact check everything before investing. This particular group of the upcoming generation is riding high on the crypto wave and is keen to invest in digital assets.  

Appealing the Younger Generation

The reluctance with crypto mirrors the attitude that was once seen among the financial advisors, concerning Robo-advisers, until most of the jobs were replaced by the latter. The industry is showing the same level of acceptance towards crypto, shying away from the fact that it is a disruptive force. 

In recent years, the world has witnessed the growth of applications like Acorns, Stash, and Robinhood, where the majority of the users are Millennials. They grew in prominence by offering highly customizable and digitally advanced architecture and experience. 

The catch-point of the story here is that the younger generation, the ones deciding the future of financial service and financial planning, have a different take on investing, saving, and conducting transactions. They prefer the easy, fast, and seamless way of financial operations, and they are well aware that cryptocurrency signifies the next frontier of investments.

If we take a closer look and study the investing tendency of the younger generation then studies suggest that around 33% of the millennials believe that they do not need a traditional bank. More than 83% of the same generation have expressed their inclination towards alternative financing options and investment strategies. Another survey has brought to light, that most of the Bitcoin investors fall between the ages of 25-34. Now if you just combine these stats, with the fact that this particular group will inherit more than $60 trillion in the coming 30 years, the equation and predictions for crypto become quite clear. They are a group of smart and technically sound investors with a rapidly growing income rate who are aware of what they want to invest without having to pay the extra fees like their predecessors. 

Cryptocurrency provides financial advisors with the ability to offer something much suitable and better to the younger investors. However, most of the financial advisors don’t talk about it. Even though when the studies clearly show that the investors want to be more motivated and educated by their respective advisors about how to invest in Bitcoins. The best thing about crypto is that it seamlessly integrates with the changing service offerings and the fee structures. Talking with the client/potential investor about crypto makes quite a sense, and aiding them to understand, purchase, account, and safely their crypto is highly needed by retail investors.

The key point is that this highly sought-after group of investors is focussed on alternative investment methods especially in crypto. Having the option to in any event have discussions with them, understanding where it fits in a portfolio and having the option to relate it to their monetary lives and objectives is a major advance toward winning their developing business. The ability to offer varied fee structures is more important as financial services revenue models keep changing.

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