Banking the Unbanked: DeFi promoting financial inclusion

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The financial industry is transforming. Blockchain and digital assets are innovative technologies gaining traction as they will enable the use of finance in a decentralized manner across borders. The next stage of expansion has been coined “DeFi“–a contraction from Decentralised Financial Institutions. In this blog, we would explore how they differ from traditional financial institutions, their pros, and cons, and also the potential of investing in this revolutionary technology.  

DeFi combines cryptography with finance and software development all wrapped up in jargon that can be a little difficult for beginners to understand without some background knowledge on the subject matter beforehand! This blog piece attempts to shed light on the next generation of financial services that operate as an automated process, developed on a blockchain, and show the potential of totally wiping out the traditional banks.

Decentralized finance is one of the most ground-breaking trends in the financial technology space today. The idea of decentralized finance or DeFi is not new, but it is only over recent years that it has gained traction in the fintech world. It offers a unique experience, which is far different than the traditional banking systems and opens up limitless possibilities in the mainstream financial world that were not available before to investors and customers. The decentralized and transparent nature of DeFi along with smart contracts allows for seamless, transparent and trustless transactions.

The market for decentralized finance is booming again with total value locked up across leading protocols reaching an all-time high of  $259.41 billion in December 2021. According to experts, the industry is expected t