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Challenges of blockchain application in the financial sector: a qualitative study

Supratika Samir Banerjee (Symbiosis Institute of Management Studies, Symbiosis International (Deemed University), Pune, India)
Arti Chandani (Faculty of Management, Jaipuria Institute of Management Lucknow, Lucknow, India)

Journal of Economic and Administrative Sciences

ISSN: 1026-4116

Article publication date: 12 December 2022




The novel blockchain technology can be leveraged, owing to the growth in computing power and its widespread applications. This study aims to understand the challenges of adopting blockchain technology in the financial sector, organise them into a model and classify them for systematic address.


Interpretive Structural Modeling (ISM) has been carried out along with MICMAC (Matrice d’impacts croisés multiplication appliquée á un classment) analysis to hierarchically structure blockchain adoption problems and categorise the challenges into four classes-autonomous, dependent, linkage and independent for better addressing. The study also uses content analysis using NVivo software.


The digraph depicts the hierarchical challenge model. Vulnerability to financial crimes and glitches, privacy issues and geopolitical tensions due to cross-border transactions are the dependent variables. Complex architecture to comprehend, code and fix, the need for new financial intermediaries, complexity in auditing and the lack of unified governance and coordination among institutions and regulators are the independent variables. The digraph, which is also justified by the qualitative content analysis, is beneficial for stakeholders to systematically address the interdependent challenges associated with blockchain implementations in finance to foster its favourable adoption.

Practical implications

The challenges in the adoption of blockchain should be resolved to allow the implementation of this technology in various finance domains. This study enables organisations to carry out resource planning and systematically address these challenges to leverage the advantages of blockchain.

Social implications

The results of the present study can help in promoting the proliferation of blockchain for faster, cost-effective, transparent and secure financial transactions and foster innovative and new business models for economic growth.


The development of technology has brought about significant changes in the financial sector. Blockchain is a technological advancement that aims to bring security and transparency to transactions. There has been no research leveraging ISM-MICMAC to hierarchically organise and classify the blockchain challenges in the financial sector, a critical one. The research also uses content analysis which is seldom found along with ISM-MICMAC.



The authors acknowledge and thank all the experts who agreed to share their knowledge and experience on the challenges of blockchain with them. Their contribution has been a vital aspect of the present study. The authors are thankful to Dr. (Brig.) Rajiv Divekar, Director of Symbiosis Institute of Management Studies, SIU, Pune, for all his support in conducting this research. His continuous and unflinching guidance was instrumental in conducting this research and writing this manuscript.


Banerjee, S.S. and Chandani, A. (2022), "Challenges of blockchain application in the financial sector: a qualitative study", Journal of Economic and Administrative Sciences, Vol. ahead-of-print No. ahead-of-print.



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