From Transactions to Transformation: Exploring the Impact of Blockchain on Customer Financial Well-being

Abstract

This study’s significance lies in its exploration of how Blockchain-enabled banking positively impacts customers’ financial well-being, offering valuable insights for financial institutions, policymakers, and academics, shedding light on the potential of Blockchain technology to enhance financial transparency and well-being in the banking sector. Convenience sampling was employed in our study, with a sample size of 273 banking customers, to investigate their perceptions and experiences related to blockchain technology in the banking sector. The study employs a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze the data and examine the direct and indirect relationships among key variables: Blockchain features (efficiency, security, and regulatory compliance), perceived information transparency, and perceived financial well-being. The findings reveal that Blockchain features significantly contribute to customers’ perceived financial well-being. Additionally, the study highlights that perceived information transparency mediates the relationship between these features and customers’ perceived financial well-being. These results emphasize the importance of Blockchain technology in enhancing financial well-being through increased information transparency. The practical implications of this study are far-reaching. Financial institutions can leverage Blockchain technology to enhance customers’ financial transparency and well-being. Policymakers may consider regulatory frameworks that encourage the adoption of Blockchain in the banking sector. Academics can explore related factors such as customer trust and knowledge for further insights. Building on the current research, future studies should explore additional factors that may influence the relationship between Blockchain-enabled banking, information transparency, and customers’ financial well-being. Further investigations could consider factors such as customer knowledge, trust, and socio-economic characteristics.