Blockchain and Big Data Integration in Financial Transparency: Explore How Combining Blockchain with Big Data Improves Transparency in Financial Reporting and Fraud Detection

Abstract

Financial transparency, accountability, fraud detection and accuracy of reporting are changing their meanings in the context of blockchain and big data. Big data is able to perform intensive analysis of regular large and complex financial data in real-time, whereas blockchain allows maintaining an immutable registry of financial transactions, which guarantees protection and traceability. Collectively, these technologies promote a higher level of trust, improve the reporting frameworks, and reinforce regulation. Their synergy could help financial institutions to detect abnormalities, reduce fraud, and enhance the quality of decisions. In addition, the combination provides better answers to international auditing standards, investor confidence issues, and conventional audit models constraints. The paper is a review and synthesis of the literature on the intersection of blockchain and big data, and how their combination can help the financial sector to become more transparent and accountable. Using 50 sources of secondary data, the review identifies the possible advantages and issues with these technologies in transforming the financial auditing and regulation, which ultimately leads to the creation of a safer, healthier, and more responsible financial system.