To read the full version of this content please select one of the options below:

Blockchain platform and future bank competition

Wesley L. Harris (Department of Aeronautics and Astronautics, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA)
Jarunee Wonglimpiyarat (Department of Aeronautics and Astronautics, Massachusetts Institute of Technology, Cambridge, Massachusetts, USA)

Foresight

ISSN: 1463-6689

Article publication date: 24 July 2019

Issue publication date: 22 October 2019

3789

Abstract

Purpose

Given that Blockchain technology poses a growing challenge to the banking industry, this paper aims to analyse the innovation of Blockchain banking with regard to its systemic dimension, as well as dynamics of competition. The empirical research demonstrates how the systemic characteristics of Blockchain banking relate to the pursuit of strategies and to what extent these strategies influence the directional path and level of technology diffusion.

Design/methodology/approach

The research study uses a case study methodology to explore the strategic competition of Blockchain banking. The study proposes the systemic innovation model for analysing and tracking the path of innovations. The model can be applied to any industry to understand the process of innovation development and the strategies to win market share in the banking industry. This research makes a contribution towards the theory of technology diffusion to understand the directional path of innovations.

Findings

The analyses of findings reveal the situation whereby most banks still compete to create their own Blockchain banking systems. The analyses, based on the systemic innovation model, also shows the low systemic feature of Blockchain banking at present. From the technology diffusion perspective, the future of Blockchain banking may need cross-chain interoperability to support a full spectrum of payments and value exchanges on the internet of things.

Originality/value

The main contribution of this paper is the systemic analysis of the latest innovation of Blockchain banking. Given that the research also includes the major banking innovation cases of ATM/cash cards, credit cards and electronic fund transfer at the point of sale/debit cards, the comparative analyses offer strategic insights to predict the progress, as well as pattern of technology development and diffusion for the case of Blockchain banking.

Keywords

Citation

Harris, W.L. and Wonglimpiyarat, J. (2019), "Blockchain platform and future bank competition", Foresight, Vol. 21 No. 6, pp. 625-639. https://doi.org/10.1108/FS-12-2018-0113

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

Related articles