The Perceived Barriers to the Adoption of Blockchain in Addressing Cybersecurity Concerns in the Financial Services Industry

The financial services industry has witnessed a notable surge in cyber-related crimes, necessitating the adoption of more robust cybersecurity measures. Current literature has identified that the adoption of blockchain can enhance the efficiency and integrity of cybersecurity mechanisms. Despite blockchain’s acknowledged cybersecurity capabilities in existing literature, the adoption rate of blockchain in the South African financial services industry has been relatively slow due to barriers associated with adopting a novel technology. This study interviewed 11 financial technology experts to gain insights into the perceived barriers to the adoption of blockchain technology to address cybersecurity concerns in the South African financial services industry. This research followed a deductive approach by combining constructs from the Innovation Resistance Theory and Technology-Organisation Framework to investigate the perceived barriers to the adoption of blockchain in addressing cybersecurity concerns in the financial services industry. The findings revealed that the adoption of blockchain in addressing cybersecurity in the South African financial services industry is influenced by the four main barriers: functional organisational-level, functional industry-level, psychological organisation-level, and psychological industry-level barriers. The functional barriers were influenced by the perceived value barrier, risk barrier, usage barrier, technology barrier, and regulatory environment barrier. The psychological barriers affecting blockchain adoption were influenced by the perceived image barrier and tradition barrier. Two additional barriers were found to inhibit the adoption of blockchain in addressing cybersecurity, namely, the use case barrier as a functional industry-level barrier and the knowledge barrier as a psychological organisation barrier.