How could decentralized finance (DeFi) innovations reshape traditional banking systems?

The rise of decentralized finance (DeFi) has introduced a wide array of financial services that operate without centralized intermediaries, utilizing blockchain technology to revolutionize borrowing, lending, and trading. This emerging field challenges the traditional banking system's monopoly by offering more inclusive, transparent, and efficient services. As DeFi continues to grow, it prompts discussions on how these innovations may transform conventional financial institutions' roles, regulations, and infrastructures. Could DeFi eventually integrate with traditional banking, or might it entirely supplant certain functions, creating a new financial paradigm?