Emerging Role of Blockchain in Banking Operations: An Overview

Abstract

Introduction: Blockchain technology is the method of storing the data systematically, such that it is impossible to change, defraud or hack the data. Distributed Ledger Technology is another name for this technology. It is like a digital ledger of numerous transactions stored or distributed throughout the Blockchain extensive network by a computer system. Banks offer critical services like payments, clearance and settlement systems, trade finance, securities, etc. Hence, there are fraud and mistakes in these key services due to many manual procedures and human mediators.

Purpose: The main purpose of this chapter is to study the emerging role of Blockchain in banking services. This chapter will attempt to examine the significance and applications of Blockchain in banking operations. This chapter will also investigate the challenges encountered by banks in adopting Blockchain technology.

Research Methodology: In this research chapter, secondary data are collected by studying the various journal papers and scholarly articles, with exact keywords like: blockchain, banking sector, applications and blockchain role. Data are collected from the Emerald, Springer Open, Google Scholar, and Science Direct databases.

Findings: This technology will enhance transparency in banking transactions in the coming future. The adoption of Blockchain will transform the banking system in many ways, such as faster payment and settlement systems, security management and fundraising.

Citation

Sharma, A., Sharma, D. and Bansal, R. (2023), "Emerging Role of Blockchain in Banking Operations: An Overview", Grima, S., Sood, K. and Özen, E. (Ed.) Contemporary Studies of Risks in Emerging Technology, Part A (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 1-12. https://doi.org/10.1108/978-1-80455-562-020231001