This is the major reason why investor nowadays are migrating from investing in the bank to Bitcoin investment. Since they have decided to full custody of the money in the bank any opportunity these investors have to remove their fund they will quickly do that and shift all their fiat into Bitcoin. Soon the bank will lose the level of trust and number of customers.
In addition to what you said, people are losing trust in banks and running to bitcoin because banks are no longer reliable but only make people feel as if they are reliable. Fiat is also losing its value overtime making it worst for you to pile up your money in a bank. This has made people deviate from fiat and bank into bitcoin for save the value of their funds and get profits for investing in bitcoin for long. You get two benefits.
Yes you're right, people are losing interest in banks because their funds are just used by the banks to enrich themselves, after successful transactions, the banks would end up giving them only peanuts as interests for their funds in savings, current and fixed deposit accounts. Bitcoin is known to give you 100% of your profits as the value increases and this is what banks can never do.
Bitcoin also gives you the liberty to pull out your funds anytime you want without much stress, but In banking system you'll go through various processes to withdraw your funds invested with them. Bitcoin presents flexibility while the banking system presents rigidity and sometimes getting access to your funds can take some time against your plan and purpose.
People are really losing interest in banks and embracing Bitcoin for it's less drama, profitable nature and the freedom its presents to investigate over their funds.