Decentralized finance, or DeFi, has come a long way since bitcoin and Ethereum started the crypto revolution. DeFi now has many thousands of participants and billions of dollars in ‘locked up value’ on hundreds of networks and blockchain protocols. But it’s still not mainstream.

Part of the problem with DeFi is its complexity and continuously morphing nature. “With its main focus on decentralization, censorship resistance and security,” protocols like Uniswap aimed to create a seamless interface for users to trade cryptocurrencies on the blockchain. Without respecting borders or regulators.

But the very lack of centralized regulation and trusted authorities means anything goes in DeFi. Programmers and coders are designing an alternative financial system, but there’s no-one to turn to if it collapses. No fiduciary oversight, no deposit insurance. Just the network.

Which makes it all a bit Wild West, and not the kind of place you want to risk your hard-earned savings in. That’s why digital banks are offering an alternative – smartFi.

Recognizing the need to provide tech-savvy young customers with programmable banking apps that could be customized to their unique requirements, digital banks began to open their systems. Initially only for tech professionals, innovative banks gave open apps and programming interfaces to their clients, so they could build their own smartFi apps on their smartphones.

Now, if you’re smart enough or have access to a tame developer, you can have your very own banking and finance system, tailored to your needs, including smart contracts – and still rely on regulated currencies and trusted custodians to safeguard your finances.

Will smartFi be able to defy the rise of DeFi? Only time will tell…