Blockchain Transformation for Banking and Financial Services: Examining the Opportunities and Risks

Abstract

The advancement of blockchain technologies has created new opportunities for businesses to deliver new innovative offerings while improving their existing efficiencies to stay relevant and maintain the required competitive advantage. As such, blockchain technology has emerged as an opportunity to radically revolutionize and transform the banking and financial industry. This paper aims to bridge the existing gap in the literature by identifying empirically relevant opportunities and anticipated risks of blockchain transformation in the sector. This study collated and empirically analyzed the conceptualized model using a qualitative case study approach, culminating with specific recommendations. The findings highlight how the realization of blockchain technology value, competitive advantage, innovation and impact is required to develop successful implementation strategies. Similarly, acknowledging associated risks from scalability, Interoperability, security, and regulatory perspectives is equally vital to developing the necessary measures to guide its successful implementation.