In an interview released today, Metropolitan Bank’s Chief Technology Officer, Nick Rosenberg, described the New York bank’s interest in acquiring more business for cryptocurrency investors and start-ups.

“We’re certainly very interested in growing this vertical. We’ve learned that it’s a serious industry. There are some very smart people involved. There are some very interesting ideas coming out that could really change the way people do business.”

The remarks made in the interview are refreshing for crypto enthusiasts, as banks worldwide have generally been turning away cryptocurrency companies at every opportunity, and in some cases actively trying to slow the crypto market all together.

According to reports from the Metropolitan Bank and the Securities and Exchange Commission, Metropolitan garnered $3.4 million in revenue in the form of foreign exchange conversion fees from crypto clients in the first quarter of 2018. This was more than a 300 percent increase from Metropolitan’s non-interest income from the previous year. Its a staggering amount of growth in non-interest earnings particularly when compared to the 7.9 percent growth reported during that same period by the rest of the banking industry.

There are a number of difficulties banks have faced in working with cryptocurrencies, most notably when it comes to the regulatory risks involved. Federal governments worldwide, as well as the European Union and UN, have expressed a need for further regulation—particularly if the cryptocurrency market continues to grow. In the eyes of government, cryptocurrency runs significant risks with regards to money laundering, inflation and cybercrime.

However, Nick Rosenberg states that Metropolitan Bank is well aware of the risks involved in taking on ‘high risk’ clients such as cryptocurrency companies. To counter these risks, Metropolitan Bank is keeping a ‘high touch relationship’ with its clients, and being ‘extremely selective about client acquisition.’ Additionally, Metropolitan Bank is being proactive in keeping an open dialogue with regulators.

“Law enforcement departments, in general, are understanding that cryptocurrency is not all about illicit payments, it has a value and it has a legitimate purpose,” Rosenberg said. “It’s just a matter of spending time explaining it, understanding what their concerns are, making them feel comfortable that we are mitigating those concerns, and that we have the right controls in place.”

Risks aside, Metropolitan Bank has a tremendous amount to gain from partnering with leaders in the crypto revolution. In a recent report by global management consultant firm Bain & Company, it was estimated that banks could reduce trade finance operating costs by as much as 80% through implementing blockchain technology. The report states further that banks are failing to keep up with new tech upgrades in the financial sector. In some cases, “complete overhaul’s” in banking IT software might be required.

Metropolitan Bank no doubt senses the need to keep up with the times as it moves forward in its partnerships with cryptocurrency companies. The bank’s director of new products, Kyle Hingher said the following,

“The opportunity is to merge technologies and that potential for something brand new that could be earth-shattering and change everything. The potential for that, I think, outweighs all the crash-and-burn scenarios. We call ourselves the entrepreneurial bank. We want to work with this new space rather than butting heads.”

The post Metropolitan Bank Eager for Crypto Clients appeared first on UNHASHED.

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