Blockchain Adoption Model for the Global Banking Industry

Abstract

Blockchain has become the new hype term in the business world for the last decade. Due to the new technology 's characteristics and innovative applications, it is being adopted globally in a wide number of industries including the banking industry, yet no adoption model is provided to guide this process. This research aims to contribute to facilitating the successful adoption and implementation of the blockchain new technology in the banking industry. Building on the assumption that the blockchain's adoption in banking will be directed by the regulations and best practices guidelines of the global banking regulatory bodies and practitioner, this research asks: What is the blockchain adoption model for the banking industry? The currently available official documents of the regulatory bodies, practitioners, and research bodies were collected, text mined and analysed, based on the adoption factors identified in the literature review and investigating the adoption factors' importance. This research was able to find three categories of adoption factors: supporting, hindering and circumstantial, identify a new adoption factor and establish the factors ' importance. As a result, an adoption model for blockchain technology in the banking industry from an institutional perspective is proposed. Based on this, it is recommended to carry further research on applying the proposed model at banks adopting the new technology to study its fitness.