The current financial world that we live in is many things but equitable may not be one of them. While in theory, financial services and access to wealth-growing resources should be available to everyone, this is simply not the case. Millions around the world remain shut out from access to basic financial services and even among those who have the access, the ability to invest and access certain assets is reserved only for a few privileged people.
However, the new class of financial platforms seems to be very geared towards not only providing financial services to the underserved but also creating greater access to certain financial tools about were previously unavailable to the masses.
To a degree, the ability of individuals to grow wealth and have a better financial standing depends on their access to certain asset classes and certain investment opportunities. In the past, these opportunities were only available via traditional financial institutions and these institutions prioritized access to these assets for only the wealthy. The average person making an average income did not have the opportunity to freely buy into certain investment vehicles as they were deemed not profitable enough.
This sort of issue goes a long way in affecting income inequality because one class of the population is given ample opportunity to always grow their wealth while another class is not.
Additionally, they are some sections of the population that are cut off from the mainstream financial world altogether. This means very poor people are denied the opportunity to even open something as simple as a bank account due to experiencing homelessness or not having access to certain tools. This inequality has gone on for centuries but seems to be changing.
Newer fintech Innovations have been credited with addressing the issue of inequality within the financial world. Digital banks, for example, often do not require a physical address to open an account which makes it easier for those experiencing homelessness to access financial services.
Fintech platforms such as Robinhood also make it easier for practically anyone to buy into stock and with the tokenization of stock on crypto exchanges, even those who do not have a lot of money can invest in profitable financial assets without necessarily being shut out by class boundaries. Overall, the new fintech landscape seems to prioritize equity above all else.
One company in the fintech space that was built on the concept of equitable access to financial resources is EQIFI, founded by Jason Blick and Brad Yasar. EQIFI uses blockchain technology as well as DeFi (decentralized finance) technology, to offer democratized financial products that were previously only available to a few select people but have now been brought to the masses.
Through EQIFI, users are able to lend, borrow, and invest in a number of assets such as ETH, ERC-20 tokens, stablecoins, and even fiat currency. Oftentimes, those who invest in digital assets expect to have very basic access to them in terms of trading but not in terms of bank-grade storage and custody.
EQIFI challenges this by offering the chance to apply for EQIBank products which include an account, loans, debit cards, over-the-counter trading, and even wealth management. Essentially, EQIFI users are potentially getting access to not only an arsenal of financial tools and wealth-building assets but also bank-grade services which make their journey easier.
EQIFI users can opt for fixed-term products which appreciate value over time and allows them to grow their wealth with less risk. In terms of lending, EQIFI offers variable lending rates and also interest rate swaps. The assets and products that EQIFI specializes in are very high yield, with some offering up to 20% APY. Regardless of where in the world EQIFI users come from, they can apply for access to bank accounts that support multiple currencies as well as credit cards.
Perhaps EQIFI’s biggest selling point, however, is the fact that it is powered by a licensed bank which is a first for a DeFi platform, which are often associated with being entirely unregulated and unsafe at times. EQIFI still holds on to the commonly used practice in DeFi spaces of community-based governance. This puts the power back in the hands of the users who vote on things like monetization strategy and are given the driver seat in the future of the platform.
This mission was alluded to by Blick himself, saying, “EQIFI provides a single uniform platform for DeFi products with potential access to EQIBank bank accounts, loans, custody, debit and credit cards, OTC, and wealth management.
EQIFI provides a complete, community-governed, DeFi solution. By providing users with a single interface, clients can manage their entire banking, trading, and lending services for fiat and cryptocurrencies.
The era of needing multiple apps, platforms, passwords, and log-ins for your banking is coming to an end.”
