Last updated: February 3rd, 2025
If you’ve used Thunes to withdraw money, used apps like Mint and YNAB to manage your bills, or bought Bitcoin on your phone, you’ve already experienced the revolution brought about by fintech.
According to Statista, the percentage of Singaporeans using the technology has grown from 2.77 million in 2019 to 4.82 million in 2024 –meaning over 80% of the country now uses fintech products.
One of the main reasons for the wide adoption of fintech is its integration with decentralized platforms, which has allowed users to enjoy better transparency and privacy. You can now pay deposit funds to entertainment and betting sites like 1xbet Singapore without exposing credit card information.
FinTech Meets Decentralization
Decentralized platforms operate without a central authority. This has eliminated multiple intermediaries, allowing users to enjoy lower transaction costs. Compared to bank transfers, decentralization is also faster, making it better for cross-border transactions.
Unfortunately, many people have been unable to take advantage of these benefits due to a lack of access to decentralized platforms. Fintech platforms like PayPal and Revolut have made decentralized platforms accessible to a broader audience by supporting the transfer of cryptocurrencies.
Use Cases of FinTech in Decentralized Platforms
Decentralized Finance (DeFFintech has helped bring DeFi to mainstream users. One of fintech’s biggest selling points is that it simplifies things. Its applications are intuitive, and creating an account requires little time and effort.
On the other hand, DeFi platforms may appear complex to the average user. If you are a beginner, you can get around this using fintech apps like Trust Wallet, which integrates DeFi into their dashboards, making it more straightforward to access and use.
Fintech apps also integrate DeFi lending protocols like Compound, allowing users to borrow, trade, and earn interest without relying on traditional banks.
Blockchain-Based Lending
Traditional lending processes are often time-consuming and require extensive documentation. The wait times alone can make the process quite frustrating for many users. Blockchain-based lending aims to solve this and allows you to get loans instantly or within hours at most.
Platforms like MakerDAO use smart contracts to enforce agreements automatically, and you only need to put up your cryptocurrency as collateral to get approved for a loan. Since there is no need for manual approvals, the fees are low. Besides borrowing, you can lend your digital assets to liquidity pools and earn interest.
While decentralization does most of the heavy lifting, you still need fintech companies to process crypto to your local currency.
Cross-Border Payments
High fees and slow processing times have made traditional payment services unsuitable for cross-border payments. FinTech is fixing this by enabling users of decentralized platforms to access their funds instantly and from anywhere across the globe.
Unlike banks, which work for a few hours each day, fintech apps and gateways are available around the clock. This has made decentralized platforms powered by fintech affordable and more convenient, increasing their adoption.
Fintech has also enabled unbanked or underbanked people in remote regions to access decentralized cross-border payments using just a smartphone.
Cryptocurrency Payments
While cryptocurrency payments could technically exist without fintech, their widespread use would be severely limited. Fintech companies allow you to buy cryptocurrency using your local currency. If you need to turn your Bitcoin, Ethereum, or Litecoin to fiat currency, you can use fintech apps like Binance.
Additionally, fintech companies make cryptocurrency payments safer and more trustworthy. In most countries, digital wallets must apply measures such as Know Your Customer (KYC), which helps make cryptocurrency payments less risky and more appealing to businesses. Unsurprisingly, more e-commerce and online betting platforms now accept crypto payments, which has helped push decentralization even further.