Adaptation of Blockchain Technology in Banking Sector in Sri Lanka: Opportunities and Challenges

Abstract

Blockchain Technology is one of the main components in Industry 4.0 implications which enable organizations to trace transactions, create new business models to solve customer problems, increase the quality and productivity, etc. Blockchain technology is used in various industries such as supply chain industry, banking industry, healthcare industry, construction industry and many more. However, in Sri Lanka there is a gap while implementing blockchain technology in banking sector despite the number of on-going and completed projects. The primary goal of this study was to identify the challenges and opportunities in blockchain adaptation and identify how the banking sector should be facilitated in the future to implement blockchain based banking systems. Cluster sampling and intensity sampling techniques were used to identify the sample. In-depth interviews were used for data collection, and they were analyzed using Thematic Analysis. Technological, Organizational and Environmental (TOE) framework was used in developing the questionnaire and to support the data analysis. The study shows that implementing blockchain-based banking systems would improve the transactions' transparency, give managers access to real-time data, improve the transactions' auditability, and save consumers time and effort. Additionally, the key reasons that challenge the implementation of blockchain technology were lack of technological understanding and accessibility, organizational hurdles, and environmental barriers.