A framework for organisational adoption of blockchain technology in the financial services sector

Abstract

The financial services sector is riddled with efficiency challenges and high costs resulting from the use of legacy financial systems. A solution for these challenges exists in the form of blockchain technology. However, adoption of blockchain in the financial services sector remains a challenge for several reasons. Key to this is the fact that the technology is still new, and there is a lack of clear information on how management of financial institutions can configure their organisations to prepare them for the adoption of the new technology. By investigating the technological aspects of blockchain technology; the organisational preparedness for adoption; and the environmental dynamics of financial services; this paper presents a framework for organisational adoption of blockchain technology. This framework will assist organisations to first reconfigure themselves to prepare for technological adoption; and second, align themselves to the requirements of adoption of blockchain technology. Through in-depth, semi-structured interviews with experts in the global financial services sector, it was found that there is a methodological approach to the adoption of blockchain technology. Blockchain advocates within organisations will be able to conduct an internal introspection into efficiency challenges they face, learn about blockchain technology, build a business case for adoption, reconfigure the organisation, align the organisation, and adopt blockchain to accord the organisation the necessary efficiencies.