Harry Markowitz developed the modern portfolio theory, the core of mathematical finance. However, when he invested his own money, he invested 50% in bonds, and the other 50% in blue chip stocks. Moral of the story: people tend to be very conservative when it comes to their money.

I also do think that the banking system is living in the dark ages. It's more than obsolete, it's pre-historic. I wouldn't be the least bit surprised to hear that some banks still used perforated cards ;-) Well, they still use COBOL...

It's easy to think of ways of innovating the current banking system. But what makes one think that anyone wants to innovate it? Banking is a pillar of society. One can't move the pillars because the edifice standing on them is too heavy.