For decades, a lack of innovation has stifled the banking sector. We still live in a world where cross-border payments can take several days, and inefficient algorithms deny loans to consumers who can afford to pay them back — all because they don’t fit inelastic requirements that aren’t reflective of the 21st century.
It’s been interesting to see how new concepts and key milestones in digitization have been pioneered by so-called “challenger banks.” These institutions, often fronted by fresh-faced financiers who previously worked at old-fashioned institutions, have seen how customers end up drowning in fees.
As you will have seen in countless articles on Cointelegraph, DeFi has been touted as the silver bullet that tackles the inherent flaws in the banking sector. Some experts even claim that decentralized finance protocols have an opportunity to render banks obsolete. Although DeFi isn’t without promise, this thriving corner of the crypto market is grappling with its own unique set of problems.