In conventional financial systems, users are required to own bank accounts in order to access their service – which about 1.7 billion people presently do not.
Bank loans also have other restrictions including sufficient collateral and a great credit score to let the banks see that a person is able to make the loan repayments and is credit-worthy.
This barrier is completely removed by decentralized lending and borrowing, and allows anybody to obtain loans by collateralizing their digital assets.
A person can also earn returns on assets and take part in the lending market by funding lending pools and gaining rewards from these assets.
Therefore, there is absolutely no need for a check of credit-worthiness or even a bank account.
