BoA or Bank of America – has accepted that there could be no competition set against the growing of cryptos by US regulators as they may be “unable” to challenge the wave.
Filed on Feb 22, the annual report to SEC or Securities and Exchange Commission, the US bank notes out digital currencies as an ecosystem that might give birth to substantial expenditure as it remains competitive.
“Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business,” BoA states in the filing.
Cryptocurrencies are with no doubt being put under radar by banks in a global scale, however the direct contact with them still stays low. This is why the European Central Bank confirmed it has decided for a hands-off approach to legislation the area in the beginning of this month.
While BoA has sought to innovate in the sphere, receiving a patent for its proposed cryptocurrency exchange system in December 2017, it has come in for criticism more recently after blocking its clients from credit card purchases of cryptocurrency.
As continued on the above mentioned report that has been filed to the commission, the financial institution awareness of the challenge that the competitors are offering is becoming crystal clear:
“…The competitive landscape may be impacted by the growth of non-depository institutions that offer products that were traditionally banking products as well as new innovative products,” BoA forecasts. The report continues:
“This can reduce our net interest margin and revenues from our fee-based products and services. In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services[.]”
Retention Failures and the growing competition has been noted out to the staff by the bank in the financial services industry as tending to cause harm to its prospects.