Blockchain in Banking: Enhancing Compliance Efficiency and Regulatory Transparency

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School of Business | Bachelor's thesis
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Date

2024

Department

Tieto- ja palvelujohtamisen laitos

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Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

29

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Abstract

Compliance in banking is getting more complex. Processes like Know Your Customer (KYC) and Anti-Money Laundering (AML) highlight inefficiencies in traditional systems. These systems are expensive and fragmented, and they rely on manual workflows. This reduces their effectiveness and increases operational risks. Blockchain offers a practical alternative. It uses decentralized, unchangeable records to share data securely. It automates tasks that would otherwise require human oversight. This reduces duplication, cuts costs, and lowers risks. Research show it builds trust, simplifies reporting, and streamlines operations. However, challenges related to scalability, integration with legacy systems, and compliance with privacy laws remain barriers to adoption. The findings suggest that blockchain offers transformative potential for modernizing compliance in the banking sector. However, widespread implementation will require overcoming technical, regulatory, and organizational challenges. This thesis provides insight into blockchain's role in shaping the future course of financial services by reviewing its advantages and disadvantages in terms of banking compliance.

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Thesis advisor

Bragge, Johanna

Keywords

blockchain technology, banking, regulation, compliance, transparency, decentralized systems

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https://urn.fi/URN:NBN:fi:aalto-202501261814

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[kand] Kauppakorkeakoulu / BIZ