Decentralized finance (DeFi) platforms have a major cost advantage over traditional banks when it comes to onboarding new users, according to Anton Bukov, co-founder of decentralized exchange (DEX) 1inch.
Speaking at a panel during Dutch Blockchain Week on May 22 in Amsterdam, Bukov said traditional banks spend between $100 and $300 per user to verify documents and set up accounts. Online banks, he said, spend about $20 to $30. In contrast, DeFi requires almost nothing beyond a smartphone and internet access.
“Onboarding to DeFi literally costs zero,” Bukov said. “You don’t need brick-and-mortar infrastructure or lengthy verification processes. Just connect and transact.”
Bukov said that this gives DeFi an edge over traditional financial institutions in reaching the 1.4 billion unbanked people who remain excluded from traditional finance due to high onboarding expenses.
1inch Network co-founder Anton Bukov at the Dutch Blockchain Week. Source: CointelegraphReaching 1.4 billion unbanked users
“That’s why we have 1.4 billion people