In recent times, the term 'debanking' has emerged as a significant topic of discussion, capturing the attention of financial analysts, policymakers, and the general public alike. But what exactly is debanking, and why has it become such a pressing issue? At its core, debanking refers to the phenomenon where individuals or businesses are denied access to banking services, often without clear justification. As traditional banking systems face increasing scrutiny and new financial technologies disrupt the status quo, understanding debanking is crucial to navigating the evolving financial landscape.

The rise of debanking is intertwined with several key factors, including heightened regulatory measures, the increasing digitization of financial services, and concerns over financial exclusion. In many cases, banks cite risk management and compliance with anti-money laundering (AML) regulations as reasons for withdrawing services. However, this has led to significant challenges for those who find themselves suddenly without access to essential financial tools. Notably, small businesses, fintech startups, and even non-profit organizations have reported instances of debanking, raising concerns about fairness and transparency in the banking sector.