Blockchain Technology as a Catalyst for Transparent and Sustainable Banking Operations Worldwide

• Author(s): Ibidapo Abiodun Ogundeji ; Hope Ehieghe Omokhoa ; Chikezie Paul-Mikki Ewim ; Godwin Ozoemenam Achumie
• Paper ID: 1707207
• Page: 303-330
• Published Date: 31-08-2022
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 6 Issue 2 August-2022

Abstract

Blockchain technology has emerged as a transformative force in the global banking sector, driving transparency and sustainability in operations. By decentralizing data management and enhancing the traceability of transactions, blockchain addresses long-standing challenges in banking, such as inefficiency, lack of transparency, and fraud. This paper explores how blockchain serves as a catalyst for sustainable banking practices by promoting accountability, reducing operational costs, and facilitating secure, real-time transactions. Its immutable ledger system ensures data integrity, fostering trust among stakeholders, including regulators, institutions, and customers. The environmental sustainability of banking operations is also enhanced by blockchain's ability to streamline processes and minimize reliance on paper-based systems. Through the integration of smart contracts, blockchain automates and verifies agreements without intermediaries, reducing processing time and resource consumption. Additionally, blockchain supports sustainable finance initiatives by enabling transparent tracking of green investments and verifying compliance with Environmental, Social, and Governance (ESG) standards. Globally, blockchain empowers financial inclusion by providing unbanked populations access to secure digital financial services, especially in developing regions. Cryptographic protocols ensure secure identity verification, while decentralized finance (DeFi) platforms expand access to credit and investment opportunities. Despite its potential, challenges such as regulatory uncertainties, scalability issues, and the energy-intensive nature of certain blockchain networks pose barriers to widespread adoption. This study examines case studies where blockchain has successfully improved transparency and operational sustainability in banking, offering insights into best practices and future trends. Furthermore, it highlights the importance of collaborative efforts between governments, financial institutions, and technology developers to establish a robust regulatory framework and accelerate blockchain innovation. By addressing existing challenges and leveraging blockchain's capabilities, the banking sector can transition towards more transparent, inclusive, and sustainable operations, aligning with global sustainability goals and enhancing customer trust in financial systems.

Keywords

Blockchain Technology, Sustainable Banking, Transparency, Financial Inclusion, Smart Contracts, Decentralized Finance, ESG Compliance, Digital Transformation, Global Banking Operations

Citations

IRE Journals:
Ibidapo Abiodun Ogundeji , Hope Ehieghe Omokhoa , Chikezie Paul-Mikki Ewim , Godwin Ozoemenam Achumie "Blockchain Technology as a Catalyst for Transparent and Sustainable Banking Operations Worldwide" Iconic Research And Engineering Journals Volume 6 Issue 2 2022 Page 303-330

IEEE:
Ibidapo Abiodun Ogundeji , Hope Ehieghe Omokhoa , Chikezie Paul-Mikki Ewim , Godwin Ozoemenam Achumie "Blockchain Technology as a Catalyst for Transparent and Sustainable Banking Operations Worldwide" Iconic Research And Engineering Journals, 6(2)