With the high level of distrust in the traditional global banking system, there is a need for an immediate change. Community-powered global banking appears to be the best solution for the problem at hand. Here, people can be in charge of their financial activities without relying on corporate entities and third parties.
The advent of blockchain technology and decentralized finance (DeFi) is revolutionizing the banking and financial industry. By harnessing the power of DeFi technology, organizations can offer an all-inclusive financial product that will be available worldwide. This is astounding progress in cross-border financial services.
The market value of the decentralized finance (DeFi) market was $13 billion as of December 2020. In March 2021, the DeFi market value had risen to an astronomical value of $93 billion. This is evidence that the global population is gradually leaning towards democratizing finance and making it accessible to everyone. The current global lending market is expected to hit $9.77 trillion by the year 2025 at a CAGR of 6%. With the current growth in the global lending market, more people need to access these financial products. However, several problems have bedeviled the current traditional global financial system, thus cutting off many people worldwide.
In the current global banking system, very few people have access to readily available lending, borrowing, and investing financial products. With a community-powered global banking system in place, pooled lending, borrowing, and investing products will be accessible to everyone worldwide. The world needs an inclusive and efficient global DeFi alternative to our traditional financial products. Some of the glaring challenges facing traditional banking include the following:
- Poorly serviced global market
- The high propensity of human error and fraud
- Excessive fees and high inefficiencies, etc
Community-Powered Global Banking Solution: EQIFI Use Case
EQIFI is harnessing the power of blockchain technology and decentralized finance to position itself as an industry leader. This service is powered by EQIBank, one of the leading digital banks in the world. EQIFI is a global DeFi alternative to our traditional banking financial products. Partner company EQIBank is taking the lead in leveraging digital technology to revolutionize the future of global banking. This also includes their BaaS and crypto OTC offering.
According to EQIFI CEO Brad Yasar, “As firm believers in the value of decentralization, we are excited about DeFi from day one. However, access to these products is limited. EQIFI is bringing the best of both worlds together; decentralized global financial products together with seamless integrated easy to use global digital banking.” EQIFI is a decentralized protocol built to support pooled lending, borrowing, and investing for ERC-20 tokens like wBTC, stablecoins, and selected fiat currencies, and ETH is also available. It also provides a single and uniform platform for DeFi products.
The Chairman of EQIFI, Jason Blick also said, “DeFi is easily one of the most exciting developments in the financial sector in a long time, and a fundamental challenge to modern finance. However, there are some issues those within the space are facing, including siloed operating models, legacy technology, and low liquidity. The answer is a global debt marketplace for both borrowers and lenders with real-world safeguards, access, and bridges.”
For a community-powered global banking platform, EQIFI introduces revolutionizing products like variable rate products, fixed-rate products, interest rate swap products, and yield aggregators. All these products make it easy and simple for users to access financial products irrespective of where they come from, and who they are.
With EQIFI charting the course in community-powered global banking, more players will certainly adopt this groundbreaking approach for financial services. The current trend further unveils the huge potential of DeFi in the global financial system. As we seek ways to make financial products available to everyone, DeFi will likely be at the center of it.