Blockchain Technology and the Banking Industry

Blockchain technology has been widely acknowledged as a disruptive force in the financial sector that is capable of undermining traditional business models and the technologies currently in use in many financial service transactions. This chapter focuses on blockchain technology’s potential implications for the banking industry. Building on the results of a previous study that I conducted through qualitative-based interviews with three professional bankers from different European banks tackling the challenges of blockchain, this chapter discusses the potential advantages and risks that blockchain technology poses to banks and identifies the main banking areas that can be affected.

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Notes

The actors interviewed are two general managers and the chief innovation officer of three medium to large international banks located in Switzerland, the UK and Italy.

Martino, P. (2019). Blockchain technology: challenges and opportunities for banks. International Journal of Financial Innovation in Banking, 2(4), 314–333. https://dx.doi.org/10.1504/IJFIB.2019.104535. Inderscience Enterprises Ltd. retains the copyright of the original article.

The reference in this paragraph is to public or permissionless blockchains, where Bitcoin and other cryptocurrencies typically operate.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is an international telematic communication network between the financial institutions associated with it. It allows financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment.

The GDPR (General Data Protection Regulation) aims to create a harmonised data protection law across the European Union and allowing users to take back control of their personal data.

For example, they use money orders, cheque-cashing services and other instruments offered through providers other than traditional financial institutions.

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Author information

Authors and Affiliations

1. Department of Economics and Management, University of Pisa, Pisa, Italy Pierluigi Martino

1. Pierluigi Martino