Anton Bukov: DeFi could reach 1.4 bln unbanked people

In his remarks during Dutch Blockchain Week last month, 1inch co-founder Anton Bukov explained that the near-zero onboarding costs in DeFi could make financial services available to the millions of people who currently don’t have access to them.

Decentralized finance (DeFi) platforms have a significant cost advantage over traditional banks when it comes to onboarding new users, Anton said during a panel at Dutch Blockchain Week in Amsterdam on May 22.

He noted that traditional banks spend between $100 and $300 per user to verify documents and set up accounts. For online banks, the cost ranges from $20 to $50 — still far higher than in DeFi, where onboarding costs are negligible as long as a person has a smartphone or computer and internet access.

“Onboarding to DeFi literally costs zero,” Anton said. “You don’t need bricks-and-mortar infrastructure or lengthy verification processes. Just connect and transact. You can just get a phone, access to the internet, and you can exchange your chicken for USDT.”

A breakthrough for 1.4 bln unbanked

According to Anton, the low onboarding costs give DeFi an edge over standard financial institutions in reaching the 1.4 bln unbanked people excluded from traditional finance due to high onboarding expenses.

“That’s why there are 1.4 bln unbanked people on the planet,” he explained. “No one’s going to invest those hundreds or even tens of dollars into them because they will never return them.”

A tool for financial inclusion

With lower barriers to entry, DeFi becomes a tool for financial inclusion. Anton said DeFi will continue to reach users who never had access to traditional banking as internet access expands globally. 

“This will unfold as a natural process,” he concluded. “No action from financial institutions or governments will be necessary. As long as a person has a smartphone and internet access, they’ll be able to onboard themselves to DeFi.”

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