Decentralized Finance (DeFi) is emerging as a powerful solution to one of the world’s largest financial challenges: the 1.4 billion people globally who remain unbanked. According to Sergej Kunz, co-founder of 1inch Network, DeFi’s near-zero onboarding costs and global accessibility can bring financial services to people traditional banks have ignored.
Reaching 1.4 Billion Unbanked Through DeFi
The World Bank’s 2021 Global Findex report estimates that 1.4 billion adults globally lack access to a bank account.
Reasons include:
- Lack of documentation
- High fees
- Long distances to bank branches
- Distrust in traditional banking systems
“DeFi doesn’t care where you live or what documents you have. If you have a smartphone and internet, you can participate,” said Kunz.
This level of accessibility is unheard of in traditional finance.
How DeFi Enables Borderless Finance
Unlike traditional banks, DeFi platforms like 1inch, Aave, and Compound offer:
- No KYC barriers or approval delays
- Near-zero onboarding fees
- Full access to global liquidity pools
- Permissionless financial tools, like lending, staking, and swaps
A user can create a DeFi wallet and access financial services in under 2 minutes—with no middleman or bank involved.
Real-World Evidence of DeFi Adoption
- In Sub-Saharan Africa, over 60% of the adult population is unbanked, yet crypto usage has soared—Nigeria ranks among the top 10 for DeFi adoption.
- India, with 190+ million unbanked adults, has seen rapid crypto wallet growth due to high smartphone and internet penetration.
- Latin America faces high inflation and banking instability—DeFi offers stablecoin-based alternatives like USDT and USDC to protect wealth.
“In regions plagued by inflation or political unrest, DeFi is more than an option—it’s a lifeline,” Kunz explained.
Challenges on the Road to Inclusion
Despite its potential, DeFi must overcome key obstacles:
- Low financial literacy in underbanked regions
- Crypto volatility and risk of loss
- Limited internet infrastructure in rural areas
- Lack of mobile-friendly, localized DeFi interfaces
Education and accessibility tools are needed to ensure DeFi truly reaches the unbanked.
Conclusion
DeFi could change the lives of 1.4 billion people by offering them borderless, affordable, and fast financial access.
With proper user education, mobile-first tools, and regulatory clarity, DeFi can democratize finance at a scale never seen before.