Data Playbook for Community Banks on Crypto Transactions

This guide outlines strategies for community banks to identify and manage customer deposit outflows to cryptocurrency exchanges. It presents findings from research analyzing approximately 226,000 transactions related to Coinbase across 92 community banks, revealing that a significant majority of customers are engaging with crypto exchanges, with a notable outflow of $2.77 for every $1 returned. The guide details primary and secondary signals to monitor in transaction data, including recurring transfers to crypto platforms and changes in customer behavior. It emphasizes the importance of proactive outreach to customers showing signs of increased crypto activity, providing action steps for prioritizing accounts and initiating financial conversations. The document also discusses the need for compliance and legal review of communication strategies, ensuring that banks maintain a supportive role without discouraging customers from their investment choices. Additionally, it includes metrics for success and recommendations for ongoing monitoring of customer behavior in the evolving regulatory landscape.