Three of five Americans hold the view that traditional banks are failing to keep pace with today’s connected times, according to a survey by San Francisco based early-stage venture capital firm Blumberg Capital.
Fifty seven percent of respondents said that traditional financial institutions will become obsolete within their lifetime.
Meanwhile, about 70% of respondents said that fintech solutions are making their lives easier, and 69% believe that these solutions will help everyone be better off financially.
The study found that 65% of Americans believe these fintech solutions will level the playing field by offering them access to services that could be earlier only accessed by the affluent. However, 72% of Americans cited security as a concern for these new online banking services.
The study revealed that most Americans want access to flexible borrowing options, with 62% of Americans saying that they pay way too much interest on debt. Further, 74% of the respondents said it would help if there was an automated and customised way to make sure they never miss a payment.
Eighty percent of Americans said that financial providers need to focus on helping the average consumers and small business owners rather than the big businesses.
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Blumberg Capital founder and managing partner David Blumberg said: "Between the negative headlines and American's general distrust of large financial institutions, banking as we know it must and will change.
"While no one knows what will happen in the banking business over the next 20 years – it's clear that more Americans are increasingly dissatisfied and are excited to embrace new technologies."