Blockchain Application in Banking System: Saudi Arabian Perspective

Blockchain is an innovative technology in the age of digitalization capturing the attention of all sectors which allows value to be exchanged and transactions are completed digitally. It manages transactions through Internet via a decentralized distributed network. Financial sector is one the most important sector that needs to be converted quickly from the traditional way of the transaction to Blockchain technology. Banks are not quick to build new technologies because of their sensitive system of security attacks so, banks need to provide new technology to enhance their security and provide services that are appropriate to an interconnected world. One of the famous hypotheses regarding Blockchain is related to cash money, as there are many studies that assume that cash money will disappear in the near future, and depend on government digital currencies. This study draws its importance from the growing interest in Blockchain technology, according to Google analyses, the search for this technology from 2013 to date has increased by 1900%. This paper aims to highlight Blockchain and its assertions that the Saudi banking system needs to consider. Furthermore, it provides summaries of the challenges and opportunities of applying this technology in the financial domain. The study found that this technology is in its early stage of growth, it is too early to say what the Blockchain will exactly enable but absolute. Blockchain could be able to handle financial processes in a more efficient way than under the current system.