Bitcoin (BTC) is hailed to be one of the major examples of Fintech in action. Fintech is driving an explosive growth. It is very difficult for lenders to know, which small business is creditworthy. Borrowers are not in many cases sure about what kind of loans they need. Data is important in making right decisions in lending and borrowing. DeFi as a disruptive technology has been fulfilling borrower and lending requirement through automation.
FinTech firms and DeFi are already making Traditional lending firms nervous. It is becoming that FinTech firms are having larger market capitalization than traditional financial services firms. Fintech market trends are changing due to blockchain, cryptocurrency, machine learning, artificial intelligence, and big data. Businesses are having different concerns and fintech trends are only making it easy to address business concerns.
The transformation in the FinTech sector is being propelled by contactless payments, CBDCs, Neo Banking, Banking as a Service (BaaS), Artificial Intelligence, Machine Learning, Open Banking, Application Programming Interfaces and lot more. People are happy to adopt to these innovations for the kind of convenience it offers. Fintech is a product of data revolution.
DeFi is an extraordinarily rewarding new sector providing for sustainable investing in digital assets. Smart contracts based Defi is expected to lower legal disputes. Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return. Defi enables impact investing encouraging financial inclusion.
DeFi APYs through ESG-driven real-world is a happening thing. Empowered by innovative leaders, decentralized finance projects are taking the efficiencies of impact investing to a whole new level. The pandemic established how blockchain technology is lowering the barriers of access to wealth generation.
Defi made it possible for cryptocurrencies and the intrinsic value in it to be used for something more than just holding and trading. DeFi made it possible for anyone with internet and digital wallet to be able to make passive income. DeFi as a wealth generation tool is not only limited to those who hold wealth to earn yield, but to anyone who can afford to buy crypto and stake in the liquidity pool.
In a scenario involving, traditional impact investing projects vs. DeFi projects the rate of return is higher in DeFi based projects. Thus, those who are willing to support impact investing will like the positive impact that can be created using crowd lending and building sustainable supply chains.
The success of DeFi is when there will be more of ESG Driven Real World Projects.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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