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Survey: Consumers say banks are behind the fintech curve

October 26, 2016

Sixty percent of Americans believe banks are failing to keep up with their needs in today's connected world, and nearly as many (57 percent) believe traditional financial institutions, as we know them, will cease to exist within their lifetime, according to research from Blumberg Capital, an early-stage venture capital firm.

Additionally, the survey revealed:

• 70 percent of Americans believe solutions such as digital banking, online lending, payments and financial services are making financial transactions easier than ever;
• 65 percent agree fintech levels the playing field by providing access to services previously only available to the wealthy;
• 69 percent of Americans think the latest tech for financial tools will help everyone be better off financially.

"Between the negative headlines and American's general distrust of large financial institutions, banking as we know it must and will change," said David Blumberg, founder and managing partner of Blumberg Capital. "While no one knows what will happen in the banking business over the next 20 years, it's clear more Americans are increasingly dissatisfied and are excited to embrace new technologies."

However, the Blumberg report said, fintech must overcome major challenges—including lack of awareness and concerns about security and privacy—in order to achieve widespread adoption. Of the survey respondents:

• 30 percent, particularly those from lower income households, are not sure how they feel about fintech;
• 72 percent worry about the security of online banking, and are not confident their financial information is secure or private; and
• 65 percent consider security the main priority when considering features in a financial institution.

View the full survey findings.

The national survey, conducted in association with Regina Corso Consulting, asked American adults what they thought about traditional banking institutions, fintech companies and new financial technologies.