WeFi is positioning itself as an on-chain neobank with the potential to bank millions of unbanked individuals. Can you share the key mission behind WeFi and how it aims to revolutionize financial inclusion?
Our vision is simple—to provide financial freedom for everyone, especially the billions of unbanked individuals globally. We often don’t realize how unfair and exclusive the traditional banking system has been for decades. If you look at the population in underdeveloped or remote regions, some people don’t have formal IDs or credit histories. This is why such a large group is excluded from participating in the global economy. They don’t have the same access to financial services such as cross-border transactions, loans, savings schemes, or investment opportunities.
WeFi wants to change this through decentralized networks and AI-driven, behavior-based identification. We focus on how people behave financially, instead of relying on outdated paper-based KYC methods. Our goal is to offer a full range of digital and, eventually, physical financial products to everyone, regardless of their background or geographical location. We want to break down the barriers that traditional banks have built.
With nearly 1.7 billion people worldwide still unbanked, particularly in developing countries, what specific challenges do you see for traditional financial systems in reaching this population, and how can blockchain-based neobanks like WeFi address these gaps?
The main issue with traditional banking is that it’s built around old systems that just don’t work for the unbanked. They ask for documents people don’t have, like IDs or credit histories, and they charge high fees for basic services. This leaves millions, especially in developing countries, without any way to access the financial system.
Blockchain-based neobanks can fix this. Basically, these are fully online financial institutions that use blockchain technology to enable banking services. Using blockchain means neobanks can follow an automated marketplace model. So, such platforms can provide multiple services to their customers with ease.
Platforms like WeFi don’t rely on outdated paperwork; instead, they use technology like AI to identify people based on their financial behavior, not their formal records. Plus, with mobile phones being so widespread in these regions, neobanks can offer access to banking services through apps. Transactions are fast and cheap because blockchain removes the need for middlemen. All of this means more people can get the financial services they need without the hassle traditional banks put them through.
In countries with high inflation and unstable local currencies, such as Argentina, Venezuela, and Turkey, people are increasingly turning to cryptocurrencies for financial stability. How does WeFi address the needs of these populations, and how do you see crypto improving their financial security?
We provide access to stablecoins, which are tied to more reliable assets like the US dollar. With our platform, users can buy, sell, store, or transact with stablecoins at minimal fees. This helps people avoid the volatility of both local currencies and regular cryptocurrencies, giving them a safe way to store and move their money.
For instance, individuals will be able to quickly convert their unstable local currency into stablecoins, protecting their wealth from rapid devaluation. They can then use these stablecoins for everyday transactions, international transfers, or simply hold them as a safeguard against inflation. Because blockchain transactions are faster and cheaper, users also avoid the high fees that come with traditional banking.
We’re also planning to develop our own stablecoin, which will be native to the WeChain. And we do have a competitive advantage in this field, as Reeve Collins, the previous CEO and co-founder of Tether, is also a co-founder and board member at WeFi. Collins played a significant role in making USDT the biggest stablecoin in the market, and his expertise and resources will be invaluable to us.
Behavior-based identification and compliance mechanisms are core to WeFi’s approach. Could you explain how this system works and why it is more effective than traditional identification systems in onboarding the unbanked?
Behavior-based identification focuses on how people interact financially. Conventional banks ask for documents like passports or utility bills, which many unbanked individuals don’t have, especially in developing countries.
Our system looks at real-time behavior—such as spending patterns, transaction history, and financial habits. This helps us create a unique digital identity for users.
The AI behind this system continuously learns and adapts, analyzing these behaviors to determine if a user is trustworthy. This allows us to onboard people without needing paperwork. The process is significantly faster and more accessible.
It’s also much more secure. Behavior-based systems are harder to fake than paper-based ID documents. For those without access to traditional banking, this method opens the door to financial services in a way that’s tailored to their reality rather than forcing them to fit into outdated models.
What role does blockchain technology play in enabling WeFi to deliver banking services more efficiently and securely? Can you elaborate on how the decentralized nature of your platform benefits the unbanked?
Blockchain gives us a massive edge in both security and efficiency. There’s no single point of failure as everything is decentralized. Transactions are fast, secure, and verifiable, which is key in building trust in regions where that trust has often been lacking.
WeFi’s platform operates on WeChain, our permissioned blockchain built on the Cosmos architecture. This setup uses Layer 1 and Layer 2 solutions, making it easier for different financial systems to connect while maintaining transparency. Smart contracts play a big role here, handling processes like remittances or loan approvals automatically. So, there’s no risk of human error. This automation speeds up services and removes the red tape that usually slows things down.
Digital literacy is often a barrier for the unbanked in adopting new financial technologies. How is WeFi approaching the issue of accessibility and usability for people who are new to blockchain and digital banking?
We’re committed to making WeFi as easy to use as possible, particularly for those who are relatively inexperienced in digital banking and blockchain technology. We’ve streamlined our interface to be intuitive and offer clear guidance every step of the way. We’re also rolling out educational resources in multiple languages, tailored to local markets, and use simple, non-technical language to make sure users feel confident in navigating the platform.
WeFi is prioritizing partnerships with local community groups and fintech incubators to offer educational workshops and host in-person sessions where users can learn how to open a digital wallet, transfer funds, and use other features of the app. We want WeFi to be something anyone can use, regardless of their technical background or geo-location.
How does WeFi plan to scale its operations across regions with significant unbanked populations, such as Africa, Southeast Asia, and Latin America? Are there particular regions where you see the most immediate impact and adoption?
We are emphasizing collaborations with local partners and adapting to the local infrastructure requirements necessary for success. For instance, in Africa, we are exploring partnerships with major mobile network operators such as MTN and Safaricom to integrate our offerings with established mobile money platforms that have already gained widespread usage amongst the population. This approach enables individuals to transition towards digital banking without causing any disruptions.
In Southeast Asia, the widespread use of phones forms a solid base for the expansion of our online banking solutions. We aim to collaborate with emerging businesses in countries like Indonesia to better serve marginalized populations. WeFi is also adapting its platform to operate seamlessly in regions with poor internet access by introducing a lighter app version that is compatible with slower networks such as 3G.
We are also keeping an eye on Latin America, where economic uncertainty is fueling the need for different financial options.
With regulatory challenges varying across different countries, particularly in the crypto space, how is WeFi navigating compliance while maintaining its vision of broadening financial access?
Regulation has always been the biggest challenge in financial services, even more so now with crypto. Each country has its own unique rules, and it can be tricky. But at WeFi, we prioritize compliance without losing sight of our goal, broadening financial access. We work within both global and local regulations and tailor solutions to fit specific regions.
Our permissioned blockchain, WeChain, plays a big role here. It allows us to remain flexible and adjust to regulatory needs while maintaining the security and efficiency that blockchain offers.
And also, as previoulsy mentioned, one of our biggest focuses right now is developing behavior-based identification mechanisms that align with compliance requirements like AML (Anti-Money Laundering) and KYC (Know Your Customer), but without relying on traditional paperwork. It will help us make sure that we can meet compliance demands in a way that’s innovative and adaptive, so we can keep pushing for financial inclusion even in highly regulated markets.
How do you envision partnerships with local governments or financial institutions in developing countries to help push forward the adoption of on-chain neobanks? Is there any existing collaboration that stands out?
You can’t scale in developing countries without having strong partnerships with local governments and financial institutions. The good thing is that these regions are often very welcoming of collaborations with new platforms and businesses. In Nigeria, we see potential in working with government-backed fintech accelerators. We’re looking to pilot our services in a regulated framework.
Also, in Indonesia, microfinance institutions are critical to reaching rural populations. We can leverage their established networks to extend digital banking services to areas where access has been limited. So, there is a lot of scope, and these local entities will also benefit from such collaborations. These partnerships are all about creating a bridge between innovation and regulation.
Remittances are crucial for many unbanked families in developing nations. How does WeFi facilitate remittance services, and how do they compare in terms of cost and efficiency to traditional money transfer services?
Traditional money transfer services like Western Union charge hefty fees—sometimes up to 10%—and transactions can take days to process. For families relying on these funds, that time and cost really add up. Also, consider the currency value in developing regions. A 10% fee might not seem much in USD or GBP, but consider a more inflated currency, and this amounts to a significant fraction of the overall transaction.
With WeFi’s blockchain-based system, we streamline the entire process. Transactions happen instantly or within minutes, and the fees are just a fraction of what traditional services charge. We also make it easier for recipients to convert digital currency into cash by integrating with local networks. We have ambitions to bring our own ATM sytems in these regions to ensure that even people with limited access to digital services can benefit.
Looking ahead, how do you see the role of on-chain neobanks evolving over the next decade? What will be the key factors in making platforms like WeFi more widespread and impactful?
Over the next decade, on-chain neobanks will play a critical role in financial inclusion, especially as more people turn to decentralized systems for secure and cost-effective banking solutions. The key factors for growth will be scaling the technology, maintaining regulatory compliance, and educating users. WeFi is positioned to be a leader in this space by focusing on these areas, and we’re committed to expanding our reach while keeping the user experience a priority.
As a co-founder of WeFi, you’ve been at the forefront of innovation in the crypto space. How do you see the synergy between stablecoins and neobanks like WeFi transforming the global financial landscape?
No pun intended, but stablecoins offer the stability that many people need, especially in economies facing currency devaluation or hyperinflation. Neobanks, in turn, bring the flexibility and accessibility of decentralized banking. Together, they provide a secure, cost-effective alternative to traditional banking, giving people more control over their finances and expanding access to financial services for millions globally.
