Will Fintech innovations render traditional banks useless

Virginia Backaitis
4 min readNov 23, 2022
Coconut Grove bank nearly demolished

As technology improves how financial services are being delivered to customers — and their value — new research has found that 74 per cent of Americans would switch from their bank to safe and more cost-effective digital fintech (financial technology firm) services. The same research also found that one in two Americans believe their bank fees are too high, while one in five believe banks are slow innovators.

The findings were derived from a survey of an independent panel of 1144 Americans by Money Transfer Comparison, a global comparison website that enables Americans to source the best money transfer rates, commissioned a survey of an independent panel of 1144 Americans to determine how Americans think their banks are keeping up with fintech innovation and competitive pricing, and whether they would be willing to switch from traditional banking to innovative fintechs such as specialist money transfer platforms, online lenders, virtual credit cards with spending trackers and trading platforms. The full results, with age and state breakdowns, can be found here: https://moneytransfercomparison.com/usa-info/bank-innovation.html

The survey found that three quarters (74 per cent) of Americans are willing to outsource their financial services to fintech digital services that were safe and more cost-effective than bank services. Specifically, 39 per cent of Americans would switch for innovative low-rate credit cards, 35 per cent for personal or car loans, 30 per cent for home loans, 25 per cent for savings accounts, 22 per cent for budgeting apps, 15 per cent for share trading and 13 per cent for international money transfers.

Higher income earners are more likely to outsource their financial services to more cost-effective digital services: 78 per cent of $100,000+ income earners would use fintech services, followed by 77 per cent of $50,000-$100,000 income earners and 69 per cent of under $50,000 income earners.

Wealthier Americans are more likely to switch to innovative digital services for home loans, personal and car loans, credit cards, international money transfers and share trading. Specifically, 40 per cent of $100,000+ income earners would use a digital home loan service, compared with 31 per cent of $50,000-$100,000 income earners and only 22 per…

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