The financial and banking industry is highly consolidated. For instance, in 2015, following the Great Recession, the five largest financial institutions in America controlled more than 45% of the industry’s total assets. Today, we all require approval for everything- from securing mortgage loans to carrying out daily transactions.
With DeFi, people will have full access to financial services and total control of their financial assets. Besides, since most of the code used by these DApps are in Ethereum smart contracts, they can be accessed by anyone who knows how to read and write.
Banks are controlled by a centralized governing establishment, while DeFi applications operate on smart contracts, which ensure that these DApps operate without third parties. Since dapps are built on public blockchains, their codes are transparent, and anyone can access them. On the other hand, the traditional banking system is totally opaque.