Data privacy in blockchain management scheme with Nudge Theory for banking sector

Abstract

Blockchain is an emerging digital transformation technique for processing and storing information. The study explores how blockchain technology can transform the banking sector by improving efficiency, transparency, and security. The main goal is to understand how blockchain can modernize traditional banking operations and address key challenges such as fraud, high transaction costs, and slow processing times. The study uses a qualitative approach, drawing insights from existing research, real-world examples, and current trends in financial technology. Findings show that blockchain offers clear advantages, including faster and more secure transactions, reduced operational costs, and improved record-keeping. It holds strong potential in areas like payments, trade finance, and compliance. However, the paper also highlights significant obstacles such as unclear regulations, difficulties in integrating with existing systems, and technical limitations related to scalability and interoperability. Blockchain is seen as a promising solution for many of the inefficiencies in current banking practices. Still, successful implementation will require careful planning, regulatory support, and collaboration across the financial ecosystem. The study offers practical insights for banks, technology developers, and regulators, recommending a gradual and strategic approach to blockchain adoption to ensure long-term value and sustainability.