Analyzing Blockchain Implementation and its Impact in Fintech

This report provides a comprehensive overview of blockchain implementation within the fintech sector. It begins with a literature review, exploring the technology's transformative potential in financial services, including payment systems, credit, compliance, and trading. The report discusses key characteristics of blockchain, such as decentralization and transparency, and examines its impact on banking, customer data, and security. Several studies and sources are analyzed, showcasing the growing interest and adoption of blockchain by financial institutions globally. The report concludes by highlighting the benefits of blockchain and fintech integration, such as enhanced customer satisfaction and improved security measures, while also referencing regulatory frameworks like GDPR and PSD2. The report uses various sources and studies to provide a comprehensive review of the current applications and future trends of blockchain in the fintech sector.

Running head: IMPLEMENTATION OF BLOCKCHAIN IN FINTECH
IMPLEMENTATION OF BLOCKCHAIN IN FINTECH
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Table of Contents
Literature review........................................................................................................................3
Conclusion..................................................................................................................................6
References..................................................................................................................................8

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Literature review
According to the author Chishti & Barberis (2016), blockchain is considered to be that
specific technology which contains the capability to revolutionize the financial services
taking place within the conductance of businesses. Again as per Campbell-Verduyn (2017),
all the prime characteristics related to the specific technology of the blockchain. It also
consists of the research around the potential implementations of the blockchain that shall be
adopted for the primary activities related to finance, which are payment and remittance, credit
and lending, compliance and trading.
As stated by Lidén (2015), the services related to finance within the industry plays a
major role for the business and the society enabling the services to save and make
investments, providing protection from the risks and the support as a reason for creation of
new jobs and enterprises. Developments in the field of information and technology have
brought a change about the industry over a period of time by provisioning an enormous
increase in the processes of transactions and diversified products. According to Wamba
(2018), the pace at which innovation is happening, within the sector has been a slow process
generally. This is all due to burden on a regular basis for the conservation of culture
embedded within the field of industry. The outcome refers to a more linear and predictable
pattern related to that of innovation with the consideration of five major innovations related
to technology referring to a period of 50 years approximately. These major innovations are,
information systems which are computer based, automated teller machines, electronic stock
trading systems, mainframe computers and lastly, the internet.
According to Guo & Liang (2016), the Blockchain technology is considered to be an
emerging and attracting hype to the scholars and the practitioners due to the fact that this
technology contains the potential for the transformation of supply-chain networks in almost

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every individual existing business sectors within the industry chain. This research aims at the
conceptualization related to such transformations taking place, which are driven by this
particular technology by the review of the variety of discoveries based upon this subject. The
literatures which are existing already refer mainly to three of the technologies which are
present, these are, ‘profound new technology’, ‘disruptive and foundation technology’,
‘disruptive innovation’, digital revolution and ‘disruptive technological revolution’.
As stated by Kursh & Gold (2016), some of the companies have already started with
the procedure of testing their ability to make trades with the use of bitcoins and with the
implementation of the blockchain technology. In the recent times, IBM and Danish transport
conglomerate Maersk had made an announcement regarding the launch of a non-profit
venture in collaboration to redefine the shipping industry which acts globally within this new
age related to the Blockchain technology. The researches which were made recently, refer to
the potential which the blockchain technology carry acting almost in every possible domain
of business. For instance, it can efficiently address all the dealings taking place within the IT
sector as well as that of the banking sectors alongside. The blockchain technology clearly
showcases the revolution of the underlying technology present within the payment-clearing
and information related to that of the credit systems present within the banking sectors.
According to Limited (2019), Blockchain and Fintech are generating a huge amount
of interest from all of the sectors present worldwide. On January 10, in the year of 2017, a
search on Google gave a result which included 324 million of results in Bitcoin, 21.6 million
of Blockchain and 12.1 million for Fintech. The countries, which are prevalently interested in
the technology of the Blockchain, are Ghana, Nigeria, Luxembourg and South Africa who
have implemented this particular technology in each of its banking sectors which are piresent
in the mentioned regions.

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According to Skinner (2016), blockchain specifically refers to a decentralize, peer-
validated crypto-ledger that puts forward a provision for a publicly visible permanent record
related to all the prior transactions which have been dealt with. Fintech is commonly referred
to a new industry based on finance to make an improvement of all the financial activities
which are taking place within a banking sector related to business.
The UN’s e-Readiness assessments have undergone evolution from a particular focus
upon a member state government referred to as the “controllers of information and services”
as a responsibility to “facilitators of information” (Evendra, Theresa & Pardo, 2011).
Mapping of highlights related to dynamic nature upon the understanding of the e-government
and the role which the information plays along with that of the communication related
technologies within the process of efforts related to transformation.
US Blockchain Center of Excellence has readily identified a series related to the
design of choices as well as key questions related to it, which would provide a helping hand
within the business model as well as the strategy (Deloitte, 2019). The cycle for the series of
actions, which need to be undertaken are,
i) Designing of the responsibilities and the related maintenance.
ii) Entrusting upon the right people with responsibilities to take the process of
implementation forward.
iii) Adapting to the accommodation of rules as well as the regulations
iv) Understanding of the impacts related to the core business process.
v) Navigation related to the rapid technologies that are undergoing change.
vi) Collaborating with the players that are necessary to ensure no effect of network.

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Another study which relates to three constructs for the proposal of a framework that
contains the capability of assessing the e-banking readiness. This includes the perceptions of
the individual bankers, perception of every single customer and the IT infrastructure which is
present within the banks (Salhieh, Abu‐Doleh & Hijazi, 2011). However, there exists certain
evidences within this report which provide a support to that e-banking which has achieved a
certain degree of strategic and operational importance lying among the managers of the bank.
Also, every customer is having a positive feedback for the embracement of newly formed
banking channels. However, it seems that the technological features and the IT skills of the
employees are rigid concerns which need consideration.
83% among the FS leaders have a belief upon the fact that some part of their business
is being at risk of being losing to the standalone FinTech companies((Blockchain in retail and
consumer banking, 2018)). Along with the rise of the challenger banks, a number of new
players have the potential to work in a much more agile and cheaper way with a separate
focus upon the experience of the customers. A number of banks have started exploring the
blockchain referring to blockchain as a probable solution, as this new technology consists of
a new excitement to speed up transactions, have a much more increased security and
transparency.
According to Wattenhofer (2016), the banking sectors underwent an evolution from
being a closed model, in where they had a much closer relation with the customer where in
the all the data related to the customer are shared is providing an acceleration to the financial
technologies as well. Customer provision the institutions dealing with finance issues with a
huge amount of wealthy data from the information related to demography depending upon
that of age, family, residential information and employee related information depending upon
the customer assets, property, income and expenditures. All of these information can be
utilized in order to reach a behavioral insight and put forward various products lying within

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the financial surrounding to match better with all of the needs related to the clients.
According to Raikwar et al., (2018), the newest General Data Protection Regulation (GDPR)
which was taken into consideration in May of the year 2018 as well as the revised Payment
Service Directive (PSD2) lying within the European Union was adopted. Completely
dependent upon the corridors of those individuals to be responsible of their personal data as
well as carry a responsibility for their usage as well as with all the individuals the particular
information is shared with. It is only FinTech among all the other third party providers that
make a facilitation for this particular transformation. To make it possible for the open
banking for the creation of new products, proposals are made to the customers utilizing all the
personal details related to that of the customers.
Third party applications are interfaces, using which the customers manage all of their
money related matters and switch providers with a particular application. This report
specifically provides a primary discussion related to all of the updated upcoming technologies
and their implementations related to the finance sector, with the help of which, the customers
to the bank are enjoying newer benefits and enjoyments while banking with a far better
security provision in turn leading to better reviews from the customer’s end regarding the
service provided by the banks.
Conclusion
From the above discussion, it can be concluded that the implementation of the
Blockchain technology and FinTech in the field of banking sectors, provisions the banks to
carry a better security for the customer service. Security reasons, which can be taken into
consideration regarding the customers, are specified to be all information related to the
customer details such as that of the belonging, house details, transaction details, and bank
account details. With the help of this particular technology, the satisfaction from the customer

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end has increased on a greater level in order to maintain a far better technological innovation
related to the customer experience while banking.

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References
Campbell-Verduyn, M. (Ed.). (2017). Bitcoin and beyond: Cryptocurrencies, blockchains,
and global governance. Routledge.
Chishti, S., & Barberis, J. (2016). The FinTech book: the financial technology handbook for
investors, entrepreneurs and visionaries. John Wiley & Sons.
Guo, Y., & Liang, C. (2016). Blockchain application and outlook in the banking
industry. Financial Innovation, 2(1), 24.
Kursh, S. R., & Gold, N. A. (2016). Adding fintech and blockchain to your
curriculum. Business Education Innovation Journal, 8(2), 6-12.
Lidén, G. (2015). Technology and democracy: validity in measurements of e-
democracy. Democratization, 22(4), 698-713.
Raikwar, M., Mazumdar, S., Ruj, S., Gupta, S. S., Chattopadhyay, A., & Lam, K. Y. (2018,
February). A blockchain framework for insurance processes. In 2018 9th IFIP
International Conference on New Technologies, Mobility and Security (NTMS) (pp.
1-4). IEEE.
Skinner, C. (2016). ValueWeb: How fintech firms are using bitcoin blockchain and mobile
technologies to create the Internet of value. Marshall Cavendish International Asia Pte
Ltd.
Wamba, S. F., Kamdjoug, J. K., Bawack, R., & Keogh, J. G. (2018). Bitcoin, Blockchain, and
FinTech: a systematic review and case studies in the supply chain. Production
Planning and Control, 6, 54.

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Wattenhofer, R. (2016). The science of the blockchain. CreateSpace Independent Publishing
Platform.
Evendra, D., Theresa, S. & Pardo, T. A. (2011). Mapping the evolution of e
‐Readiness
assessments. Transforming Government: People, Process and Policy, 5(4), 345–
363.doi:10.1108/17506161111173595
Salhieh, L., Abu‐Doleh, J. and Hijazi, N. (2011), "The assessment of e‐banking readiness in
Jordan", International Journal of Islamic and Middle Eastern Finance and
Management, Vol. 4 No. 4, pp. 325-342. https://doi.org/10.1108/17538391111186564
Blockchain in retail and consumer banking. (2018). [Ebook]. Retrieved from
https://www.pwc.co.uk/financial-services/fintech/assets/blockchain-in-retail-
consumer-banking.pdf
Limited, I. (2019). Infosys Blockchain Solutions and Technology Services. Retrieved 8
August 2019, from https://www.infosys.com/blockchain/#block-chain/2
Deloitte, d. (2019). The Blockchain Readiness Framework [Ebook]. Retrieved from
https://www2.deloitte.com/content/dam/Deloitte/il/Documents/general/innovation.pdf