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No matter who you are, you had to have heard of cryptocurrency or at the very least Bitcoin within the last 10 years. What period of time you heard of it might have shaped what you already think and believe about Bitcoin and the possibility of using digital currency.
I’m here to tell you that cryptocurrency will change the way that marketing is done in the finance world. In fact, it already is to some degree.
How Cryptocurrency is Changing Finance
Cryptocurrency has at the very least changed the way finance companies think about gaining returns. Companies like PayPal and Venmo have taken steps to give users a platform for crypto purchasing, although transactions and trading are still minutely stuck in their own subgenre of finance.
If you pay attention to the way that Banks market themselves, it becomes increasingly obvious that they don’t want to be involved in the market volatility of crypto finance.
Wells Fargo makes sure to use big bold lettering in their logo, and the language used in their direct-to-consumer marketing is extremely upfront, friendly, and above all trustworthy.
Campaigns for American Express and Chase have been focused on hiring celebrities with a highly trusting persona, who then tells you about all the amazing things that you can do with your money if you hold it at their institution.
But they always avoid explicitly telling you that you have to have your money with them. It’s implicit, not explicit.
Why aren’t more Banks investing in Crypto?
The problem with cryptocurrency to banks is that it shifts The Meta surrounding the way that they’ve established themselves as secure institutions. If they get into cryptocurrency, which they need to, they might tarnish the years of marketing they have spent trying to portray themselves as solid structures.
Because let’s be honest, even though Bitcoin is a pretty secure form of currency, it is a very volatile investment strategy. Getting in at the right time, avoiding pump and dump schemes, and making sure that all of your money stays secure and backed up without the need for third-party security strategies is a deep complex process that takes a pretty high amount of investment to get into.
Banks know that in order for them to capitalize on the crypto market, they need to convince the lay consumer that Bitcoin isn’t a crazy marketing strategy.
They would need to entirely rebrand as institutions more than secure places to hold money and direct deposits. Of course, they do more, but they intensely hide the amount that they do behind the scenes.
Crypto investing would require a new brand strategy for all banking institutions that get involved. Wells Fargo wouldn’t be able to just announce that they’re going to allow people to move back and forth between Fiat currency and cryptocurrency.
It would be a nightmare to try and explain to consumers why they might lose significant amounts of money on a single transaction if parts of their investment portfolio are in Bitcoin.
I’m not saying it can’t be done, I’m just saying it’s going to have to make a lot of strides before we see any real changes.
What are Big Banks Doing to Collateralize the Metaverse
What I think a few banks could do to help mitigate this loss is create a separate brand as an offshoot of their existing brand to exclusively assist consumers in the crypto finance space.
For example, if Chase were to announce that it was launching a new brand called “chase B.” This brand would exist exclusively as a way for Chase to funnel resources and existing investments into a new brand.. which they could market as a bank for crypto-interested normies.
It would exist as an institution to create and lend stock assets for existing and Future cryptocurrencies to build wealth.
If Chase offered a Chase exclusive brand debit card that could instantly convert crypto into Fiat currency or vice versa… it would be the first institution to create that international brand presence on a global scale.
Additionally creating easier means of access by which to fund, invest, and deposit cryptocurrency would be an easy way for a sub-branded cryptocurrency bank to exist.
But the point of this is all theoretical and a mental thought exercise to see what banks would need to do to get involved. I would heavily prefer if banks did not get invested in Bitcoin or any other cryptocurrency for that matter.
But I do think it’s inevitable.
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