Analysis of the Impact of Blockchain Technology on the Banking Industry based on the SWOT Model

DOI

10.2991/978-94-6463-811-0_49How to use a DOI?

Keywords

Blockchain Technology; Banking Industry; SWOT Analysis; Financial Innovation; Regulatory Compliance

Abstract

As a disruptive breakthrough in financial technology, blockchain technology is changing banking industry operational models. Using the SWOT paradigm, this paper methodically examines its strategic effects, pointing out technical strengths, natural constraints, and outside opportunities and hazards. Blockchain’s basic mechanisms—distributed ledgers, cryptographic algorithms, and smart contracts—significantly improve banking efficiency (e.g., enabling real-time cross-border payments), lower operational costs by reducing intermediary dependencies, and strengthen risk management by tamper-proof data transparency, according to evidence from existing literature. Its broad acceptance is hampered, meanwhile, by scaling restrictions, heavy energy consumption, and asynchronous regulatory systems. Emphasizing the need to synchronize technical innovation with institutional changes, the report also suggests a multidimensional strategy framework for conventional banks. Most importantly, although industry standardizing initiatives should blend distributed systems with centralized control, regulatory measures must change along with blockchain deployment to solve compliance issues. These coordinated efforts help banks manage digital finance era competitive dynamics and leverage blockchain’s transforming power.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Shucun Zuo
PY  - 2025
DA  - 2025/08/14
TI  - Analysis of the Impact of Blockchain Technology on the Banking Industry based on the SWOT Model
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 463
EP  - 473
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_49
DO  - 10.2991/978-94-6463-811-0_49
ID  - Zuo2025
ER  -