The finance industry is constantly looking for new and innovative ways to address its problems. And in recent years, the rise of fintech has offered a new way to tackle these issues. But as fintech has grown in popularity, a new movement has emerged: DeFi, or decentralized finance, opening doors to companies such as the Domenic Carosa and Dan Schatt-led Earnity.
Fintech was established to disrupt traditional finance. The successful fusion between finance and technology is worth acknowledging, as its players, such as PayPal and Starling, are established companies now, with Apple and Google as recognized fintech proponents. No longer are these companies operating like startups. Fintech is a sector that is barely two decades old. However, the industry is now facing its own disruptor in the guise of decentralized finance.
Looking for a Solution
Fintech is experiencing what experts call “the great stagnation.” After more than a decade of breaking financial barriers, fintech has hit a high wall. Transfer fees around the world are nowhere near cheap, and processing times take a minimum of two business days. While the world enjoys mobile payment apps and online bank accounts, the backend of the financial system still operates in the paper era.
As Earnity executives Dan Schatt and Domenic Carosa point out, the solution to this great stagnation is DeFi and crypto. DeFi utilizes blockchain technology to permit developers to design and build money-like software. DeFi boasts of permissionless, democratic, and inclusive programs to give power back to the people. Global users can transfer money to people in different parts of the world in an instant and have them receive it immediately with little to no fees. When it comes to trading, tokenized stocks can be traded all day, every day of the year, and have the stocks settled in one’s account at once. Moreover, users can buy a yield-seeking account searching for income sans human involvement.