American citizens are losing confidence in just about every major institution, and according to Gallup, banks are no exception.
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Confidence in Banks Drops Significantly
Hardly anyone will be surprised to hear that banks are taking the brunt of this loss in faith. Whereas 49 percent of Americans had confidence in their banks back in 2006, that number dropped to 27 percent in 2016.
Quite a significant decrease, and it is the biggest retrace among all 14 major institutions.
While it may be understandable to see banks taking a beating on the confidence radar, the big question is what these institutions will do about it moving forward.
Innovation in the financial sector is direly needed, yet very few banks are actively pursuing these opportunities. Moreover, those who talk about innovation and disruption are — most likely — lying about it.
Interestingly enough, some the other main institutions in the United States are showing less of a decline. Organized religion is not faring too well, but it only lost half as much confidence from the US public compared to banks.
The biggest increase in confidence was found in the presidency category, with Barack Obama serving for eight out of the ten years covered in the survey.
The issue remains: why banks are struggling to retain their customers?
Venturing into the mobile sector is a priority, yet most interfaces feel annoying to use or restrict users regarding sending money. Moreover, there are a lot of competitors emerging, including fintech startups, Bitcoin, and other peer-to-peer solutions.
Bitcoin Offers Everything That Banks Do Not
Although a lot of things are controlled by banks these days, there are viable alternatives out there.
Using a bank means no complete financial control, having to pay to store funds with a third-party, and running the risk of the institution going bankrupt.
Bitcoin, on the other hand, provides everything banks can not. Bitcoin lets users be in full control of their funds at all times, albeit there are intermediary services available as well.
Cryptocurrency users won’t be charged to store their funds in a secure location, as they control the device on which they keep funds. Whether that is a computer, mobile device, or offline solution, is entirely up to them.
The biggest difference is how Bitcoin will not go bankrupt any time soon. It is always possible that the value of Bitcoin could fall dramatically, and investors need to keep that in mind. However, as long as there are individual users and enterprises supporting Bitcoin, there is nothing to worry about.
When looking at Bitcoin from a confidence level, there is no lack of excitement. With its limited supply and the upcoming block reward halving, there are ample reasons to see a bright future ahead.
What are your thoughts on Americans losing confidence in banks? Let us know in the comments below!
Images courtesy of Shutterstock, Gallup.