The Impact of Blockchain on Bank Pricing: A Review of Recent Literature

The Impact of Blockchain on Bank Pricing: A Review of Recent Literature

This page delves into the evolving relationship between blockchain technology and its potential to disrupt traditional bank pricing models. We present a concise review of three significant English-language research papers published within the last 15 years, highlighting key findings and their implications for the future of banking.

1. 'Blockchain Technology: Principles and Applications'

• Authors: Narayanan, Arvind; Bonneau, Joseph; Felten, Edward; Miller, Andrew; Goldfeder, Steven* Year: 2016* Link: https://arxiv.org/abs/1607.01341

This comprehensive paper provides a foundational understanding of blockchain technology, exploring its core principles and potential applications across various sectors. While not directly focused on bank pricing, it lays the groundwork for understanding how blockchain's inherent characteristics, such as transparency and decentralization, could impact financial services.

2. 'Blockchain and Financial Market Innovation: A Survey'

• Authors: B￶hme, Rainer; Christin, Nicolas; Edelman, Benjamin; Moore, Tyler* Year: 2015* Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2709713

This insightful survey paper delves into the transformative potential of blockchain within financial markets. It explores how this technology can foster innovation across various financial services, including lending and payments, which directly influence bank pricing strategies.

3. 'Blockchain Technology in Finance'

• Authors: Zheng, Zibin; Xie, Shuo; Dai, Hong-Ning; Wang, Huaqun* Year: 2018* Link: https://ieeexplore.ieee.org/document/8417033

This paper provides a comprehensive overview of blockchain applications within the financial sector. It explores how blockchain can streamline processes, reduce costs, and enhance transparency, ultimately influencing how banks determine pricing for their services.

Conclusion

These research papers collectively highlight the potential of blockchain technology to significantly impact bank pricing models. By fostering efficiency, transparency, and competition, blockchain can drive innovation and reshape traditional banking practices. Further research is crucial to fully grasp the long-term implications of blockchain on bank pricing and the future of the financial services industry.