Implementation of Smart Contract Technology in Financial Services Institutions

Abstract

The popularity of blockchain-based applications has pushed the advancement of a smart contract as an essential part of the blockchain platform. Previous research has validated that smart contracts can facilitate many functions in financial services companies such as banking and insurance. A smart contract is useful to automate the execution of an agreement by initiating steps when a certain circumstance is fulfilled; thus, it can eliminate the role of any middlemen or waste time. This study explores the basic concepts of blockchain-based applications, smart contracts, advantages, challenges, and potential implementation in the financial services industry. Keywords: Blockchain, smart contract, Ethereum, crypto eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by E-International Publishing House, Ltd., UK. This is an open-access article under the CC  BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under the responsibility of AMER (Association of Malaysian Environment-Behavior Researchers), ABRA (Association of Behavioral Researchers on Asians), and cE-Bs (Centre for Environment-Behavior Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.