Traditional financial products in sharp decline compared to cryptocurrencies

Traditional financial products are declining sharply compared to cryptocurrencies, especially in developing countries, with prepayments being very interesting.

As stated by other International Prepaid Index de Ding, more and more customers are accessing digital asset services, which are far more attractive than traditional financial products, such as personal loans. The data also show high adoption of digital currencies, reaching 25% in the developing countries surveyed.

Traditional financial products in sharp decline compared to cryptocurrencies

This half-yearly study, commissioned by the Ding service, examines the responses of no less than 6,250 participants in Saudi Arabia, the United Arab Emirates, Nigeria, Indonesia, Germany, India, Mexico, Brazil and the Philippines, regarding their participation in the prepaid market and their general behavior regarding the economy.

Among the countries surveyed, the highest percentage of adoptions was cryptocurrencies were registered in Nigeria, where 25% of users confirmed to own Bitcoin or other cryptocurrencies. Next came the Philippines and Indonesia, where 19% and 18% of respondents confirmed that they had cryptography. On the other hand, encryption is “very” low in Germany and Mexico, with 8% for each and 10% for Saudi Arabia.

Especially in developing countries, with prepayment which is very interesting

This study also shows a large selection of cryptocurrencies rather than traditional financial products. Cryptocurrencies were in sixth place out of thirteen options, with traditional bank accounts, savings accounts, credit cards being the most popular products. However, cryptocurrencies were cited more than personal loans and other stock market and home loans.

The report also shows some interesting information about the prepaid market, which shows that more than three quarters of users have already dealt with prepaid products or services. And far from being the last resort for those who are not entitled to a phone subscription or credit card, the survey shows that people often opt for prepaid because it is easier to manage in terms of budgets and expenses. Only 11% of respondents say they use prepaid because they have no other choice.

In an interview with the Fintech Times, Rupert Shaw, Ding’s Chief Trading Officer, said: “2021 has been a year in which cryptocurrencies, DeFi and NFT have become increasingly frequent in conversations. Our Global Prepaid Index has shown that customers want flexibility and choice with what it is today, and this applies to both investment options and other prepaid products – these customers are frugal, they want to manage their budget and there is a real trend towards this options. compared to traditional financial services. “

“The peer-to-peer nature of this investment category is attractive and it is also an opportunity for them to be financially involved as they may have felt excluded in the past. 2021 has been an important year for cryptocurrencies, with price increases and very frequent news, especially around NFT.

However, security concerns continue to plague this industry. Another interesting finding from the GPI report is the strong correlation between the fear of cybercrime and the introduction of cryptocurrencies. Most respondents from Nigeria, the Philippines and Indonesia expressed concern about the theft of their financial data, ID or piracy, more than in other countries.

Respondents from these countries are also more likely to report fears of data collection by governments or large companies. On the other hand, Indian customers have the least concern about online financial crimes and data fraud. Germans are least worried about data collection.