Blockchain and Crypto, Member Exclusive

What would it take for FIs to embrace DeFi?

  • At Tearsheet's upcoming Big Bank Theory Conference, traditional FIs and upstarts will explore the emerging world of DeFi.
  • Publicis Sapient's David Donovan shares his thinking around how incumbents can compete in this new world.

Email a Friend

What would it take for FIs to embrace DeFi?

The Big Bank Theory is Tearsheet’s most ambitious conference yet. We’ve brought together the best in digital banking with the best in embedded finance to talk about the future of banking products and services. Firms like Goldman Sachs, Bank of America, Square, Intuit, Cross River, N26, and Galileo will be there in attendance and presenting. Get your ticket here.

To whet our appetites, I spoke with David Donovan, head of financial services for the Americas at Publicis Sapient and a sponsor of the event, to talk about the DeFi opportunity for traditional banks and FIs. 

The Biden Administration’s moves in crypto are telling in terms of where the market may be headed.

David Donovan, Publicis Sapient: I don’t think anybody would question the fact that we need regulation. The important thing to understand is that the crypto market/DeFi is different from your equity market or fixed income market. You want to put in smart regulation that creates investor protection, but you also want to consider that it’s a unique asset class. It’s an alternative asset class that’s going to be very exciting. The real power of what DeFi will unlock is creating a better financial system — if done and regulated correctly. Just like the internet, where there was this incredible growth in this incredible unlock; but within that journey of the internet, there were also some fits and starts, where some companies that had crazy valuations went to zero. I can think CMGI,, and all those different companies that actually came public and went to zero. That’s part of markets: there are going to be companies that rise and fall. When you fast forward to today, from the year 2000, the world is better off with the internet. It unlocked some incredible companies. I see a similar evolution in DeFi.

This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “What would it take for FIs to embrace DeFi?”

Outlier OpinionsMakers

Finance Everywhere, Member Exclusive

Embedded Briefing: What’s driving the embedded finance boom?

  • Bain & Company estimates that the embedded finance industry will swell up to $7 trillion in transactions by 2026, up from $2.6 trillion in 2021.
  • Payments, lending, and banking were found to be the key drivers of the embedded finance boom. In the future, embedded insurance, tax, and accounting are poised for significant growth.
Subboh Jaffery | October 04, 2022
Green Finance, Member Exclusive

Green Finance Briefing: An intro to environmental sustainability in banking

  • For banks and financial institutions, sustainability initiatives present opportunities as well as risks, according to a new report on the current landscape of environmental sustainability in banking.
  • Sustainability is a business conversation - climate change is bound to create a shift in resources, bringing with it a reallocation of capital away from the status quo.
Iulia Ciutina | September 30, 2022
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: How crypto firm Blockdaemon is bucking the “crypto bro” trend

  • This week, we explore the current state of gender equality in the crypto industry, and what firms in the space can do to counter the long-standing “crypto bro” trend and make way for a more egalitarian future.
  • We also discuss the current state of crypto regulation in the US, and look at how the lack of regulatory clarity is impacting the growth of the industry.
Ismail Umar | September 29, 2022
Member Exclusive, Online Lenders

Lending Briefing: Debit cards are taking over

  • This year, debit cards have emerged as the preferred payment method for the majority of US consumers, dethroning credit cards.
  • Younger generations are behind this switch – even though they're also getting credit cards, Millennials and Gen Zers prefer to pay with debit.
Iulia Ciutina | September 28, 2022
Member Exclusive

Why are regulators cracking down on bank-fintech partnerships?

  • A higher level of regulatory scrutiny is on the way for fintechs and the bank partners on which they rely.
  • Increased regulatory scrutiny could result in a safer and more resilient market to the benefit of consumers, says Brian Graham, partner at Klaros Group.
Lindi Miti | September 27, 2022
More Articles