Are traditional banks in trouble? A recent survey by Blumberg Capital, an early investor in EarnUp, seems to suggest this might the case. The survey found that a majority of Americans believe that traditional financial institutions are failing to service their needs and keep up with changing modern landscape. As a result, many are turning towards new fintech solutions to help them with their financial needs.

No Longer Meeting the Needs

The survey found that respondents overwhelmingly believed that banks are simply not focusing on the issues plaguing the average consumer and small business. High interest rates seemed to be a major concern that continually came up among respondents, with 62% believing that they are paying too much interest on debt. A majority (79%) also stated they wanted flexible borrowing options that would help minimize their interest payments.

There are also a significant portion of respondents who would go outside traditional financial channels to avoid dealing with banks – 59% would “would borrow from or loan money to a friend or family member to grow a small business if it meant paying less interest to banks.”

As EarnUp Co-Founder and CEO, Matthew Cooper explains: “Consumers across the country are overwhelmed by the complexity and volume of their debt. The current financial system consistently fails to help the average American with these issues, particularly minority and lower income communities. It’s exciting to be part of a FinTech revolution, with a platform like EarnUp, that lets consumers intelligently automate their financial lives, build wealth, and get out of debt.”

A lot of this distrust towards banks most likely stems from the recent financial crisis and how the larger financial institutions responded to the economic turmoil. Most interesting is the fact that 57% of respondents felt that the “traditional banks as they know them will cease to exist with their lifetimes.”

The Fintech Revolution

In contrast to people’s souring opinions towards traditional banks, a majority of respondents held positive views towards newer Fintech solutions – with 70 percent believing these new solutions “are making financial transactions easier than ever.”

Many respondents felt that new fintech solutions are finally leveling the playing field for everyone by providing access to service previously only available to the wealthy. 69% thought that these tools will ultimately help everyone be better off financially.

In an interview with Forbes, founder and managing partner of Blumberg Capital, David Blumberg explained people’s new affection towards Fintech: “Most people feel that fintech is a good thing for consumers and for small businesses, that it will help make things more efficient, give them more information, more transparency, more automation of things that should be automated.”

“An example would be, you never want to miss a mortgage payment,” says Blumberg. “There should be a system for this — an automated system that automatically pays down your debt. And not only is it automated and straightforward, but it’s smarter, so it knows when you should make an extra payment to reduce your total interest paid. It acts like a watchdog that watches the banks so that if you make an extra payment, they properly credit you with paying down principal first and not just telling you you made two interest payments in advance.”

Despite general excitement towards the Fintech revolution, there were some concerns around the security of these new tools – with 65% listing security as the main priority when considering features in a financial institution. This puts the onus on new Fintech companies to maintain the highest levels of security to gain back consumers’ trust – a particular area EarnUp prides itself upon.

Probably the biggest takeaway from the Blumberg Capital survey is that the American mindset towards traditional financial institutions and the rising crop of new Fintech companies is shifting. Banks are no longer viewed as the only option for financial services, as people are increasingly turning to fintech solutions that will truly meet their changing needs. The Fintech revolution has begun and millions of Americans are joining!

Read the full survey, including insights from Matthew Cooper and other Fintech leaders, at Blumberg Capital.