Unbanked

Individuals who are unbanked are those who are unable to get basic banking products and services, the majority of whom are from marginalized social groups and are consequently rejected by conventional financial institutions for a variety of reasons. People who have opted not to utilize banks or other standard financial services are also considered unbanked.

The majority of the unbanked are often impoverished people who cannot afford or meet the conditions for obtaining a bank account. Despite governments’ attempts to offer new financial products that may assist in reaching out to unbanked communities via microfinance and other techniques, many banks continue to turn down low-income consumers because they lack the resources.

The crypto ecosystem’s collective purpose is to promote financial inclusion via digital assets, smart contracts, and other blockchain-based technologies. By far the most promising answer for the unbanked is the Bitcoin and DeFi initiatives, which provide revolutionary new apps that mirror established financial goods and services that are freely available to anyone.