Blockchain platform and future bank competition

Abstract

Purpose Given that Blockchain technology poses a growing challenge to the banking industry, this paper aims to analyse the innovation of Blockchain banking with regard to its systemic dimension, as well as dynamics of competition. The empirical research demonstrates how the systemic characteristics of Blockchain banking relate to the pursuit of strategies and to what extent these strategies influence the directional path and level of technology diffusion. Design/methodology/approach The research study uses a case study methodology to explore the strategic competition of Blockchain banking. The study proposes the systemic innovation model for analysing and tracking the path of innovations. The model can be applied to any industry to understand the process of innovation development and the strategies to win market share in the banking industry. This research makes a contribution towards the theory of technology diffusion to understand the directional path of innovations. Findings The analyses of findings reveal the situation whereby most banks still compete to create their own Blockchain banking systems. The analyses, based on the systemic innovation model, also shows the low systemic feature of Blockchain banking at present. From the technology diffusion perspective, the future of Blockchain banking may need cross-chain interoperability to support a full spectrum of payments and value exchanges on the internet of things. Originality/value The main contribution of this paper is the systemic analysis of the latest innovation of Blockchain banking. Given that the research also includes the major banking innovation cases of ATM/cash cards, credit cards and electronic fund transfer at the point of sale/debit cards, the comparative analyses offer strategic insights to predict the progress, as well as pattern of technology development and diffusion for the case of Blockchain banking.

Innovation and Challenges of Blockchain in Banking: A Scientometric View

“…For integrating lessons from banks [27], finance [36], strategy [70], mobile bank [10] and socio-economics [54], the current study use an exploratory approach and inductive reasoning.…”

Assessing the feasibility of blockchain technology in industries: evidence from Turkey

“…In recent years, a growing body of literature has investigated and presented the possible research directions, issues, challenges and applications of blockchain in logistics and supply chain, finance, agriculture and food, pharmaceutical, health and energy industries (McKinsey, 2015; Oh and Shong, 2017; Dobrovnik et al , 2018; Morabito, 2017; Wu and Tran, 2018; White, 2017; Engelhardt, 2017; Radanovic and Likic, 2018; Queiroz et al , 2019; Wang et al , 2019a; DHL, 2018; Treiblemaier, 2018; Garcia-Torres et al , 2019; Harris and Wonglimpiyarat, 2019; Brilliantova and Thurner, 2019; Bürer et al , 2019; Grover et al , 2019; Yang, 2019; Bhabendu et al , 2019; Wang et al , 2019b; Gurtu and Johny, 2019; Helo and Hao, 2019; Janssen et al , 2020; Barker et al , 2020, McGhin et al , 2019).…”

“…The emerging applications of blockchain technology in logistics and supply chain, finance, agriculture and food, pharmaceutical, health and energy industries (Wang et al , 2019b; DHL, 2018; Treiblemaier, 2018; Garcia-Torres et al , 2019; Harris and Wonglimpiyarat, 2019; Brilliantova and Thurner, 2019; Bürer et al , 2019; Hasselgrena et al , 2020) have been possible in part because of its intrinsic flexibility that results from the fact that blockchain is a platform that can be programmed to address a variety of needs.…”

IdeaChain: a conceptual proposal for blockchain-based STI policy development

“…Hines (2017) considers blockchain as a transformative technology for higher education. Regarding financial technologies and banking, blockchain is considered to enable new business ecosystems for stock trading, record keeping and smart contracts (Harris and Wonglimpiyarat, 2019) as well as providing a blockchain-based digital identity to enable financial inclusion and creating equal opportunities (Sedaghatparast, 2019). Recent foresight exercises identify blockchain as one of the priorities for national STI development (Gokhberg et al, 2017).…”