Retail banking has changed little in a century, remaining dependent on centralised intermediaries. This paper argues that replacing banks requires combining negotiation theory, behavioural economics, and blockchain enforcement into a unified system. It proposes algorithmic bargaining systems (ABS), which embed negotiation logic, behavioural risk models, and decentralised market design into smart contracts. These systems allow savers and borrowers to interact directly without banks. The paper develops the theory behind ABS, applies it to a decentralised savings-and-loans marketplace, and analyses political-economic impacts through case studies and simulations. It concludes that ABS could create more transparent, efficient, and resilient credit markets, improving financial inclusion, stability, and monetary governance.
Nipun Agarwal (Thu,) studied this question.