Blockchain platform and future bank competition

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.

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.

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.

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.