Deobanks Challenge Banks And Fintechs As Third Force In Finance, Says WeFi CEO
A new category of financial institution is beginning to take shape as decentralized banking models, or “deobanks,” position themselves between traditional banks and fintech firms.
The shift, industry leaders say, could redefine competition in global finance over the next decade.
“Banks offer trust through strong regulation, and fintechs provide digital convenience. Deobanks deliver user sovereignty without sacrificing accessibility,” said Maksym Sakharov, co-founder and Group CEO of WeFi, the first deobank of its kind, in an interview with Benzinga.
“This forces existing players to rethink their value proposition from the ground up,” Sakharov, who pioneered the concept of a Deobank, acquiring a Guiness World Record in the process, said.
The premise behind deobanks is that users should retain ownership of their assets while accessing services as seamlessly as with traditional institutions.
Sakharov argued that this is particularly relevant in emerging markets, where infrastructure gaps and high fees make alternatives more appealing.
Adoption hurdles remain.
Many potential users still associate decentralized finance with technical complexity, despite improvements in interfaces and …
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