The problem with banks is that they hide the fraud from the users.
You pay 12% interest, and the vendor pays 3-10% per transaction for the convenience of using a CC.
The fees are this high because of the amount of CC fraud.
Further, if the vendor has to live in constant fear of clawbacks. If they process a fraudulent transaction, they may lose all of that money, as well as the product they sold.
One motorcycle dealer I have heard of no longer accepts CCs because he cannot afford to cover a loss if he gets defrauded.
So, the banks are not a safe haven, they are just playing an insurance fraud game. And thus, you may be correct, that customers flock to them, because they only see the shiny lobbies, and not the rot just under the surface.
You may well be right, and I I agree that they surely hide their fraud from their customers. However, ordinary folk in the crypto world. especially beginner, get put off easily and if a newbie got hacked they would either never come back or go to the banks. Only yesterday I saw an announcement that my local bank was holding an ideas meeting to offer security for Bitcoin holders.
I have heard this as well.