A REVIEW ON BLOCKCHAIN INTEGRATION IN FINANCIAL INSTITUTIONS: OPPORTUNITIES AND RISKS

Abstract

The fast digitization of financial services has led to the emergence of blockchain technology that has the capacity to transform how traditional banks operate. Blockchain technology can be used to host the transparent, secure and efficient making of transactions without intermediaries. It refers to a distributed, immutable digital ledger. This article provides an in-depth overview of blockchain technology, its fundamentals, principles, and a variety of types them. It proceeds to analyze the increasing role of blockchain in the financial industry. It reveals that blockchain technology can make financial organizations more reliable, time-saving, and budget-effective. This assessment extends further on how it assists marginalized communities in accessing bank services and how it ramps up client activity using trust-based systems being two factors that help in financial inclusion. Also, it examines how blockchain technology, which entails smart contracts, automation, and the combination with AI and ML, might increase the efficiency of operations. With the help of analysis of existing research and practice, the article provides a comprehensive understanding of how the technology of blockchain is transforming the landscape of the field of finance and introducing new dimensions of innovation, transparency, and trust in the international system of money circulation.