How could decentralized finance (DeFi) transform traditional banking systems?

Decentralized finance, commonly referred to as DeFi, represents a potentially revolutionary shift in the way financial services are built and delivered, moving away from centralized institutions to blockchain-based platforms. Unlike traditional banking systems, which rely heavily on intermediaries, DeFi operates on smart contracts that automate and enforce transactions. This technological transition could offer reduced costs, increased transparency, and financial inclusion on a global scale. However, understanding the potential challenges such as security, regulatory concerns, and scalability issues is critical. Can DeFi truly complement or even replace current banking systems, and what might this mean for the future of global finance?