--

12 (2) 2022

Analysis of factors influencing blockchain implementation in finance sector in Sri Lanka


Author - Affiliation:
Manisha C. Abeysekera - School of Computing, Asia Pacific Institute of Technology
Priyantha Kumarawadu - School of Computing, Asia Pacific Institute of Technology
Corresponding author: Priyantha Kumarawadu - priyantha@apiit.lk
Submitted: 09-04-2022
Accepted: 02-06-2022
Published: 10-08-2022

Abstract
The global finance industry is highly impacted by fintech innovations and technology transformations due to rapidly evolving emerging technologies. Blockchain has become one of the key emerging technologies to bring promising results in the finance sector. These transformations and the use of decentralized ledger systems would contribute to significant changes in financial transaction processing and with the advent of distributed ledger technology and its ability to enforce better transparency, blockchain is becoming a disruptive force in the finance industry. This research investigated challenges in implementing blockchain solutions in the finance sector in Sri Lanka. The Interpretive Structural Modeling (ISM) based approach was used to investigate relationships between identified factors that influence blockchain solutions. According to the results of the study, the factors with higher driving power included lack of trust in new and immature technology, lack of regulations and governance, lack of standardization, cost of implementation, and interoperability issues with legacy systems. The results of the study emphasize the importance of regulatory bodies to develop new rules and regulations to support the technology transformation and blockchain vendors to provide better interoperability and standardization across platforms.

Keywords
blockchain technology; business transformation; distributed ledger technology; finance sector

Full Text:
PDF

Cite this paper as:

Abeysekera, M. C., & Kumarawadu, P. (2022). Analysis of factors influencing blockchain implementation in finance sector in Sri Lanka. Ho Chi Minh City Open University Journal of Science – Economics and Business Administration, 12(2), 3-14. doi:10.46223/HCMCOUJS.econ.en.12.2.2236.2022


References

Block, P. M., & Marcussen, S. K. (2019). Blockchain technology and the implementation in the supply chain: Occuring barriers. Retrieved January 20, 2022, from https://www.diva-portal.org/smash/get/diva2:1388470/FULLTEXT01.pdf


Bryman, A., & Bell, E. (2015). Business reseach methods. Oxford, UK: Oxford University Press.


Central Bank of Sri Lanka. (2020). CBSL commences the process of developing a blockchain technology based know-your-customer proof of concept. Retrieved January 20, 2022, from https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20200707_cbsl_comme nces_process_of_developing_blockchain_technology_based_kyc_poc_e.pdf


Cunningham, R. K., Routi, S., Yerukhimovich, A., & Clark, J. (2020) Blockchain technology: What is it good for? Communications of the ACM, 63(1), 46-53.


DiCicco-Bloom, B., & Crabtree, B. F. (2006). The qualitative research interview. Medical Education, 40(4), 314-321.


Dobrovnik, M., Herold, D., Fürst, E., & Kummer, S. (2018). Blockchain for and in logistics: What to adopt and where to start. Logistics, 2(3), 1-14.


Frankenberger, T., Mueller, M., Spangler, T., & Alexander, S. (2014). Community resilience: Conceptual framework and measurement feed the future learning agenda. Rockville, MD: USAID.


Frew, L. (2021). Global banking and finance review - Impact of technology on the financial sector. Retrieved January 20, 2022, from https://www.globalbankingandfinance.com/impact-of-technology-on-the-financialsector/


Goonathilaake, J., Deshapriya, N., Jayakody, R., & Dharanidu, M. (2018). Framework for data management in public service delivery applications in sri lanka using blockchain technology. European Journal of Computer Science and Information Technology, 6(3), 34-56.


Halas, M. (2019). Blockchain technology as a part of distribution system operators’ platform business model. Retrieved January 20, 2022, from https://lutpub.lut.fi/bitstream/handle/10024/160115/Milan_Halas_Masters_Thesis_2019LUTUniversit y.pdf? sequence=1&isAllowed=y


Heillig, L., Schwarze, A., & Voss, S. (2017). An analysis of digital transformation in the history and future of modern ports. Proceedings of the 50th Hawaii International Conference on System Sciences, 50(1), 1341-1350.


Kabashkin, I. (2017). Risk modelling of blockchain ecosystem. In Z. Yan, R. Molva, W. Mazurczyk & R. Kantola (Eds.), Network and system security (pp. 59-70). Basel, CH: Springer.


Korpela, K., Hallikas, J., & Dahlberg, T. (2017). Digital supply chain transformation toward blockchain integration. Paper presented at the Proceedings of Annual Hawaii International Conference on System Sciences, Hawaii, USA, IEEE Computer Society.


Kuijpers, R. (2018). Blockchain as a tool for contract creation. Retrieved January 20, 2022, from https://lutpub.lut.fi/bitstream/handle/10024/160115/Milan_Halas_Masters_Thesis_2019LUTUniversit y.pdf? sequence=1&isAllowed=y


Lansiti, M., & Lakhani, K. R. (2017). The truth about blockchain. Harvard Business Review, 95(1), 118-127.


Levi, S. D. (2018). An introduction to smart contracts and their potential and inherent limitations, harvard law school forum on corporate governance and financial regulations. Cambridge, MA: Harvard Law School.


Moody’s Analytics. (2019). Exploring blockchain implementation in Sri Lanka - CFA Institute. Retrieved January 20, 2022, from https://www.cfainstitute.org/-/media/regional/arx/post-pdf/2019/04/15/exploringblockchainimplementation-in-sri-lanka.ashx


Mougayar, W. (2016). The business blockchain: Promise, practice, and application of the next Internet technology. Hoboken, NJ: John Wiley & Sons.


Nowiński, W., & Kozma, M. (2017). How can blockchain technology disrupt the existing business models? Entrepreneurial Business and Economics Review, 5(3), 173-188.


Phaneuf, A. (2020). Business insider - Financial services industry overview in 2021: Trends, statistics & analysis. Retrieved January 20, 2022, from https://www.businessinsider.com/ financial-services-industry


Poszler, F., Ritter, A. C., & Welpe, I. (2019). Blockchain startups in the logistics industry: The technology’ s potential to disrupt business models and supply chains. In Logistik im Wandel der Zeit - Von der Produktionssteuerung zu vernetzten supply chains (pp. 567-584). Wiesbaden, Germany: Springer Gabler.


Sage, A. P. (1977). Interpretive structural modeling: Methodology for large-scale systems. New York, NY: McGraw-Hill.


Seebacher, S., & Schüritz, R. (2017). Blockchain technology as an enabler of service systems: A structured literature review. International Conference on Exploring Services Science, 2017(1), 12-23.


Seibold, S., & Samman, G. (2016). Disledger. Retrieved May 20, 2021, from https://www.disledger.com/kpmg-blockchain-consensus-mechanism.pdf


Subramanian, H. (2018). Decentralized blockchain-based electronic marketplaces. Communications of the ACM, 61(1), 78-84.


The Economist. (2015) The next big thing. Retrieved January 20, 2022, from https://www.economist.com/special-report/2015/05/07/the-next-big-thing


Turpitka, D. (2020). Forbes - How to improve the financial services industry with artificial intelligence and blockchain. Retrieved January 20, 2022, from https://www.forbes.com/sites/forbestechcouncil/2020/04/21/how-to-improve-the-financial-services-industry-with-artificial-intelligence-and-blockchain/?sh=79f20f8c70c6


Walliman, N. (2011). Research methods: The basics. New York, NY: Routledge.


Weking, J., Mandalenakis, M., Hein, A. M., Hermes, S., Bohm, M., & Krcmar, H. (2020). The impact of blockchain technology on business models - A taxonomy and archetypal patterns. Electron Market, 30(1), 285-305.


Ying, W., Jia, S., & Du, W. (2018). Digital enablement of blockchain: Evidence from HNA group. International Journal of Information Management, 39(1), 1-4.



DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.12.2.2236.2022
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.