THE IMPACT OF BLOCKCHAIN TECHNOLOGY ON BANKING PERFORMANCE

Authors

  • Rabie Fadi Aref Aldalaien Ph.D. student, University of Baguio, Graduate School, Philippines Author

DOI:

https://doi.org/10.34218/IJCET_16_04_013

Keywords:

Blockchain, Security, Audibility, Cost, Management, Financial Profits

Abstract

Background: Blockchain became more popular in the banking sector through increasing the efficiency of banking systems and the security of banking transactions. Objectives: measuring the effect of blockchain technology's potential on improving the banking sector. Methods: A cross-sectional study was used to accomplish the objectives of this research. The questionnaire was used as a tool for data collection. The questionnaire is composed of three parts. The first part was designed to collect demographic characteristics, while the second part was designed for data collection about the results of blockchain applications, and the third part was concerned with data collection on the impact of blockchain on the banking sector. The random sample included 416 employees at different levels in commercial banks in Jordan. Results: The results showed that the BC assessment was intermediate concerning the increase of security of banking databases, reduction of cost, and increasing the ability to fight fraud in the banking processes. On the other side, the results showed that the BC increased the customer trust in the banking system and reduced the customers' costs to execute different transactions. The results showed that there is a high impact of BC on the banking management in different attitudes related to the reduction of management costs and increasing the financial profits for the banking system. Conclusions and Recommendations: The BC impact is very high on the banking business in two ways. The first one is related to security and cost, while the second is related to increasing the customers' trust in the banking system and widening the transactions globally. The study recommended the increase of awareness of BC's impact among the employees through regular training programs.

 

 

References

Ahlam Ansari, Hatim Shabbir Bohra, Daanish Kathi, & Ghufran Khan. (2022). Banking System Using Blockchain. International Journal of Advanced Research in Science, Communication and Technology, 273–278. https://doi.org/10.48175/ijarsct-3114

Alwi, S., Malan, I. N. B., Yusof, S. H., & Mustafa, M. (2023). Block Chain Technology Application to the Banking Sector. 2023 International Conference on Artificial Intelligence and Smart Communication, AISC 2023, 816–821. https://doi.org/10.1109/AISC56616.2023.10085346

Association of Banks in Jordan. (2022). The Banking Sector in Jordan. https://allonboard.jo/en/association-of-banks-in-jordan-signs-a-cooperation-agreement-with-amam-ventures

Aziz, N., Rodiah, R., & Susanto, H. (2021). Encrypting of Digital Banking Transaction Records: An Blockchain Cryptography Security Approach. International Journal of Computer Applications, 174(24), 21–26. https://doi.org/10.5120/ijca2021921147

Bhowmick, D. (2022). Application of Blockchain in the World of Finance & Business. Interantional Journal of Scientific Research in Engineering and Management, 06(03). https://doi.org/10.55041/ijsrem11922

Bhushan, B., Anushka, Kumar, A., & Katiyar, L. (2022). Security Magnification in Supply Chain Management Using Blockchain Technology. Environmental Footprints and Eco-Design of Products and Processes, 47–70. https://doi.org/10.1007/978-981-16-6301-7_3

Chaudhry, U. B., & Hydros, A. K. M. (2023). Zero‐trust‐based security model against data breaches in the banking sector: A blockchain consensus algorithm. IET Blockchain, 3(2), 98–115. https://doi.org/10.1049/blc2.12028

Chuadhry, M. A., Bhatti, M. G., & Shah, R. A. (2023). Impact of Blockchain Technology in Modern Banking Sector to Exterminate the Financial Scams. Sukkur IBA Journal of Computing and Mathematical Sciences, 6(2), 27–38. https://doi.org/10.30537/sjcms.v6i2.1170

Dai, J., & Vasarhelyi, M. A. (2017). Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), 5–21. https://doi.org/10.2308/isys-51804

Fan, W., Chang, S. Y., Emery, S., & Zhou, X. (2020). Blockchain-based Distributed Banking for Permissioned and Accountable Financial Transaction Processing. Proceedings - International Conference on Computer Communications and Networks, ICCCN, 2020-Augus. https://doi.org/10.1109/ICCCN49398.2020.9209687

Hair, J. ., Hult, G. T. ., Ringle, C. ., & Sarstedt, M. (2017). Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Kedua Ed. California: Sage Publication.

Hassan, N., & Kaustoob, R. (2018). Blockchain banking system. International Journal of Advance Research, 4(2), 1505–1507. www.IJARIIT.com

Joglekar, P. D. P., Parvekar, V., Sabde, A., Rasal, O., & Rasal, Y. (2023). Blockchain Based Transaction Management System. International Journal for Research in Applied Science and Engineering Technology, 11(4), 1514–1518. https://doi.org/10.22214/ijraset.2023.50029

Kajla, T., Sarin, V., & Raj, S. (2022). Blockchain in the Banking Sector. 151–159. https://doi.org/10.4018/978-1-6684-4133-6.ch008

Kamber, M., & Shah, P. D. K. (2022). Secure Banking Transaction and Digital Banking Using Blockchain Technology. International Journal of Innovative Research in Engineering & Management, 9(6), 36–42. https://doi.org/10.55524/ijirem.2022.9.6.6

Kaygin, E., Zengin, Y., Topcuoglu, E., & Ozkes, S. (2021). The Evaluation of Block Chain Technology within the Scope of Ripple and Banking Activities. Journal of Central Banking Theory and Practice, 10(3), 153–167. https://doi.org/10.2478/jcbtp-2021-0029

Kour, M. (2023). Blockchain Technology Changing Landscape of Banking Industry. Proceedings of the 2nd International Conference on Applied Artificial Intelligence and Computing, ICAAIC 2023, 1212–1216. https://doi.org/10.1109/ICAAIC56838.2023.10140854

Kumar, R. (2022). Role of Blockchain in Revolutionizing Online Transactional Security. https://arxiv.org/abs/2206.04141v1

Lage, O., Saiz-Santos, M., & Zarzuelo, J. M. (2022). The Value and Applications of Blockchain Technology in Business: A Systematic Review of Real Use Cases. Lecture Notes in Networks and Systems, 320 LNNS, 149–160. https://doi.org/10.1007/978-3-030-86162-9_15

Luo, Y., Duan, J., Li, A., & Shao, J. (2023). Blockchain Information Disclosure and Trade Credit. Emerging Markets Finance and Trade, 59(9), 3036–3059. https://doi.org/10.1080/1540496X.2023.2203809

Mafike, S. S., & Mawela, T. (2022). Blockchain Design and Implementation Techniques, Considerations and Challenges in the Banking Sector: A Systematic Literature Review. Acta Informatica Pragensia, 11(3), 396–422. https://doi.org/10.18267/j.aip.200

Malik, A., Parihar, V., Srivastava, J., Purohit, K., & Abidin, S. (2023). Necessity and Role of Blockchain Technology in the Domain of Cyber Security and Data Science. Proceedings of the 17th INDIACom; 2023 10th International Conference on Computing for Sustainable Global Development, INDIACom 2023, 1487–1493.

Marchenko, V., & Dombrovska, A. (2023). Blockchain technologies in digital economy: advantages and challenges. The Development of Innovations and Financial Technology in the Digital Economy, 189–206. https://doi.org/10.36690/diftde-2023-189-206

Naik, V., Pejawar, R., Singh, R., Aher, A., & Kanchan, S. (2020). Expeditious banking using Blockchain Technology. International Conference on Computational Intelligence for Smart Power System and Sustainable Energy, CISPSSE 2020. https://doi.org/10.1109/CISPSSE49931.2020.9212253

Nandhini, N., & Arumugam, P. (2023). Digital currency banking using block chain technology. World Journal of Advanced Engineering Technology and Sciences, 8(1), 053–061. https://doi.org/10.30574/wjaets.2023.8.1.0011

Padmavathi, U., & Narendran, R. (2020). Concept of Blockchain Technology and Its Emergence. 1–20. https://doi.org/10.4018/978-1-7998-2414-5.ch001

Pradhan, K., Ghule, G. S., Yadav, D. R., & Shinde, S. S. (2020). Banking System using Block chain Technology. International Journal of Scientific Research in Science, Engineering and Technology, 566–570. https://doi.org/10.32628/ijsrset2073112

Pravin, N. P., Anil, K. P., Sunil, S. M., Kundlik, M. S., & Suhas, P. A. (2020). Block chain technology for protecting the banking transaction without using tokens. Proceedings of the 2nd International Conference on Inventive Research in Computing Applications, ICIRCA 2020, 801–807. https://doi.org/10.1109/ICIRCA48905.2020.9183333

Puneet Vernekar, Anushree P, Aritroo Kumar Chowdhury, & Bhoomika S. (2022). Implementation of Blockchain in the Banking Sector. International Journal of Scientific Research in Science, Engineering and Technology, 261–265. https://doi.org/10.32628/ijsrset229637

Saidat, Z., Silva, M., Al-Daboubi, D., Al-Naimi, A. A., & Aldomy, R. (2022). How Can Blockchain Revolutionize the Jordanian Banking Sector? Journal of Southwest Jiaotong University, 57(3), 311–325. https://doi.org/10.35741/issn.0258-2724.57.3.25

Siddiqui, A. A., & Ali, S. H. S. (2022). Conceptual framework of determinants of blockchain technology acceptance in banking industry. AIP Conference Proceedings, 2617. https://doi.org/10.1063/5.0119695

Singh, R., Jain, S., & Gupta, S. (2023). Review Paper on Block-Chain Technology. International Journal of Advanced Research in Science, Communication and Technology, 66–67. https://doi.org/10.48175/ijarsct-10723

Taber, K. S. (2018). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education, 48(6), 1273–1296. https://doi.org/10.1007/s11165-016-9602-2

Tiwari, S. (2023). Bank Record Storage using Blockchain. International Journal for Research in Applied Science and Engineering Technology, 11(5), 6124–6129. https://www.ijraset.com/best-journal/bank-record-storage-using-blockchain

Trivedi, S., & Ankita. (2023). An umbrella review of the literature on blockchain and distributed ledger technology and their roles in future banking. Perspectives on Blockchain Technology and Responsible Investing, 29–57. https://doi.org/10.4018/978-1-6684-8361-9.ch002

Verma, D., Kansra, P., & Kumar, P. (2023). Significance of block chain technology and industry 5.0 in Indian banking sector. Opportunities and Challenges of Business 5.0 in Emerging Markets, 263–269. https://doi.org/10.4018/978-1-6684-6403-8.ch014

Vukovljak, B. (2023). Blockchain as an Instrument for Improving Banking Processes. Naše Gospodarstvo/Our Economy, 69(1), 43–55. https://doi.org/10.2478/ngoe-2023-0005

Wang, R. (2023). Blockchain and Bank Lending Behavior: A Theoretical Analysis. SAGE Open, 13(1). https://doi.org/10.1177/21582440231164597

Yadav, D. R., Ghule, G. S., & Shinde, S. S. (2020). Survey on Banking System using Block Chain Technology. International Journal of Scientific Research in Science, Engineering and Technology, 368–371. https://doi.org/10.32628/ijsrset196635

Downloads

Published

2025-08-22

Issue

Vol. 16 No. 4 (2025): INTERNATIONAL JOURNAL OF COMPUTER ENGINEERING AND TECHNOLOGY (IJCET)

Section

Articles

License

Copyright (c) 2025 Rabie Fadi Aref Aldalaien (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

Rabie Fadi Aref Aldalaien. (2025). THE IMPACT OF BLOCKCHAIN TECHNOLOGY ON BANKING PERFORMANCE. INTERNATIONAL JOURNAL OF COMPUTER ENGINEERING AND TECHNOLOGY, 16(4), 183-203. https://doi.org/10.34218/IJCET_16_04_013