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Crypto Lessons and Unbanked Last Generation

Cryptocurrency prices have been collapsing for more than half a year, so it seems counterintuitive to say that crypto investing is a tool that can create “the financially successful first generation.”

However, Eddie Behringer, co-founder and CEO of Copper Banking, which caters to youth and focuses on education, said he sees crypto winter as an educational opportunity for its clients, whose “sweet spot” is around 15.

“The way we’re actually doing that is by providing education behind that approach,” said Karen Webster of PYMNTS.

And with Gen Z and Copper audiences behind the increasing mainstream adoption of crypto, Behringer said, “A lot of the things we’re seeing in this volatility are really great opportunities for us to really enlighten.”

That’s a big part of Copper’s broader strategy, he said: to deliver that financial literacy by giving teens the “actual access” they need “to really be a part of the ecosystem.”

You can also access it in a far safer space than going to a decentralized finance (DeFi) exchange, since top exchanges like Coinbase only accept customers over the age of 18, Behringer said.

“At the base level, we’re accommodating the next several million consumers,” he added.

This is not a need that is limited to young people. With only 68% of Americans generally considered financially savvy, according to experts, it takes a helping hand to help people invest successfully in the newer and often complex cryptocurrency industry and its economy.

Related: What History Tells Us About Finding Bitcoin’s Bottom

education first

“Long before we offered crypto alongside banking and our fully managed investment products at MoneyLion, we introduced modules on the basics of cryptocurrency,” beginning with the history of Bitcoin and several altcoins, MoneyLion co-founder and CEO Diwakar Choubey told Webster.

Noting that only 17% of Americans took a personal finance course in high school, Choubey said the first step was to spend even before neobanking with the crypto-as-a-service provider Zero Hash collaborated to build their crypto tracks. lots of content creation time… to really discuss what this new technology is and what it can ultimately mean for society, either as a means of storing money or as a payment rail.”

As for the reasons they built crypto services, Choubey said customer surveys showed that 80% wanted access to cryptocurrencies.

Even after the 2022 crash, Choubey said, “Crypto has possessed the zeitgeist,” to the point where its clients are receiving anecdotal and often questionable information from social media.

See also: Dogecoin and the siren song of crypto

“Our customers have told us [they] want to be up to date even though they may have a lower net salary” than someone who might use an exchange like Coinbase, he said.

“We wanted to be the definitive source for the right advice on how a consumer should think about it, if you have $1,000 to invest, you should probably start with your book-entry, fully managed investment account that takes into account your risk profile, your Age, your type of employment and when you might want to retire,” he added.

But once they put 80% into that goal-oriented account, he noted that many want to play around with bitcoin and ether — the cryptocurrency of the #2 blockchain, Ethereum.

virtuous circle

That’s something Zero Hash is seeing from other customers, co-founder and CEO Edward Woodford told Webster.

“We continue to see demand,” he said, noting that the company opened a record number of new crypto accounts in early to mid-June. “I think people have realized that crypto is on sale.”

More specifically, neo-banks can open up crypto investments to underserved customers and communities in a simple, flexible and seamless way they often haven’t had access to, Woodford said.

But it’s not just pure investing, he added. Many customers are seeing success with offers like crypto roundups and rewards programs that allow people to buy into digital assets without actually taking money out of their wallets.

“There’s this virtuous circle piece,” he said. “Now you can round up, you can be rewarded. You can then sell these assets, you can buy them, you can raise them as you feel more confident and comfortable with the different pieces. It’s really about embedding it and adding it to the customer experience.”

That’s key, because the goal is to keep those customers instead of having them withdraw funds and go to Coinbase.

“Why they stay with you has to be at the heart,” Woodford said. “It’s about that comfort, that education” and that they’re “embedded in the brand they already trust.”

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NEW PYMNTS DATA: THE CUSTOMIZED SHOPPING EXPERIENCE STUDY – MAY 2022

Around: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are right and where they need to up their game to deliver a tailored shopping experience.

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