Unbanked

The financial sector has been affronted over the past few months by a continual downward trend within markets. With rising interest rates, US regulators shutting down mid-size banks, and continual global events causing further knock-on effects on the world economy, banking is incredibly unstable right now.
Banking stocks have been falling for the past few months, with the most recent crash wiping out another <a href="https://www.forbes.com/sites/dereksaul/2023/03/17/bank-stock-crash-deepens-dow-sinks-400-points-as-top-banks-shed-another-54-billion/?sh=29844e8580b2" target="_blank" rel="noopener">$54 billion in valuation</a> from US banks. As the economic situation continues to worsen, banks have stopped lending to the same extent as a few years ago, becoming much more careful with where they’re putting their money.
With this current situation being replicated around the world, many nations believe that this is the right moment for decentralized finance to take to the world’s stage. By offering a decentralized method of providing financial support to users, the world of DeFi can offer financial services that are completely separate from that of the crashing financial industry.
Services like <a href="https://metatime.com/" target="_blank" rel="noopener">Metatime</a>, which provide a whole span of decentralized financial services through their ecosystem, are rapidly gaining public favor as an alternative to traditional banking. In this article, we’ll dive into the advantages of decentralized financial services and demonstrate why this is the perfect moment for disruptive technologies in finance.
<h2 style="text-align: center;" id="countries-around-the-world-are-turning-to-defi">Countries Around the World Are Turning to DeFi</h2>
With the rising lack of faith in traditional financial systems, countries are more readily looking for alternative solutions. This trend is occurring in all parts of the world, with blockchain technology spending has skyrocketed over the past few years. At present, blockchain solution spending is <a href="https://www.statista.com/topics/5122/blockchain/#:~:text=Blockchain%20spending,billion%20U.S.%20dollars%20by%202024." target="_blank" rel="noopener">set to rise to 19 billion by 2024</a>.
One of the most curious nations about blockchain and decentralized finance is <a href="https://walletinvestor.com/magazine/nigerian-crypto-exchange-quidax-cuts-its-workforce-by-20" target="_blank" rel="noopener">Nigeria</a>. Across the National Universities Commission, the Nigerian Communications Commission, and the Securities and Exchange Commission, Nigeria has united on the goal of creating accessible blockchain technology across all sectors.
By focusing on both legal and regulatory implementations for blockchain technology, Nigeria would be able to then allow citizens to use DeFi technology with fewer risks. This presents a strong case for the nation to convert to a more digitally-concentrated financial system. While this is still very early days, it would provide citizens a way of obtaining a bank account that wasn’t directly through a traditional banking system.
For the <a href="https://www.worldbank.org/en/news/feature/2022/07/21/covid-19-boosted-the-adoption-of-digital-financial-services#:~:text=Globally%2C%20some%201.4%20billion%20adults,go%2C%20much%20more%20is%20needed." target="_blank" rel="noopener">1.4 billion unbanked</a> individuals around the world, the widespread accessibility to DeFi services would be revolutionary.
Nigeria is far from the only country following this trend, with Ghana most recently announcing its pursuit of DeFi technology. Metatime has <a href="https://twitter.com/HysSahin/status/1653780430628311043?cxt=HHwWhsC-gcSitPMtAAAA" target="_blank" rel="noopener">recently announced that they are coming to Ghan</a>a after discussions between the company and the official Office of Okyenhene.
These movements demonstrate the rapid uptake of blockchain technology on an international scale, with whole countries positioning themselves to get on board with the mounting DeFi tide.
<h2 style="text-align: center;" id="why-is-defi-a-great-choice-in-2023">Why Is DeFi a Great Choice in 2023?</h2>
Across the world, we’re currently experiencing high levels of interest. With high interest, a rising cost of living, and countless other financial stresses, the general public is starting to doubt the place of traditional finance. Especially when decentralized finance presents such a strong case for a new system, more people than ever before are turning to this medium.
As stocks fall and interest rates continue to rise, the public opinion of banks and traditional financial institutions is rapidly wearing thin. In the past few years, after the economic crash of COVID and now seemingly the continual downward trajectory of the industry, it’s becoming more difficult to manage finances.
Studies conducted on behalf of the national bank demonstrated that <a href="https://www.jstor.org/stable/24751990" target="_blank" rel="noopener">trust in banks declines significantly</a> during times of crisis. During these moments of crisis, businesses, customers, and whole sectors start to look for alternative solutions. At this particular moment in time, with crisis seemingly everywhere we look, DeFi has the unique ability to disrupt the industry.
Decentralized finance does not rely on any centralized infrastructure like banks of governments in order to successfully run. With that in mind, these systems are increasingly looking like an attractive option to investors. Particularly for those that are currently unbanked, getting into the traditional financial system is nearly impossible. With strict regulations about who can join a bank, many have resigned themselves to being bankless forever.
However, decentralized finance is extremely accessible, specifically designed as an alternative financial system that allows people to sign up and get started with ease. This could significantly help anyone that’s unbanked, with more countries allowing DeFi meaning this is more achievable than ever before.
The next few months, based on how the world of traditional finance continues, could be an extremely important period for decentralized finance.
<h2 style="text-align: center;" id="final-thoughts">Final Thoughts</h2>
As the banking industry continues to suffer, alternative options will become a viable way of alleviating the distress that the market is causing. Alternative financial systems, like those proposed by decentralized finance, are exciting opportunities to change integral parts of society. Countries around the world are taking note of this opportunity, with regulation and trade deals being drawn up on a weekly basis.
Over the next few years, we’re likely to see the total rise of decentralized technology, overcoming previous barriers and allowing the unbanked community an accessible way of becoming banked. On an international scale, decentralized technology is poised to start majorly disrupting our current failing financial systems.

Banks for the Unbanked Promises To Be the Turning Point in Global Finance

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