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

Shucun Zuo ()
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Shucun Zuo: Shanghai University

A chapter in Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025), 2025, pp 463-473 from Springer

Abstract: 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.

Keywords: Blockchain Technology; Banking Industry; SWOT Analysis; Financial Innovation; Regulatory Compliance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-811-0_49

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