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Contents
Chapter 1: Introduction..............................................................................................................5

1.1. Background..................................................................................................................5

1.2. Aim of the Research....................................................................................................6

1.3. Objectives of the Research..........................................................................................6

1.4. Research Questions.....................................................................................................7

1.5. Rationale......................................................................................................................7

1.6. Problem statement.......................................................................................................8

Chapter 3: Methodology..........................................................................................................10

3.1. Introduction...................................................................................................................10

3.2. Research philosophy.....................................................................................................10

3.2. Research Approach.......................................................................................................11

3.3. Research Method...........................................................................................................11

3.4. Collection and Analysis of data....................................................................................12

3.5. Sampling of the data......................................................................................................13

3.6. Validity and Reliability.................................................................................................13

3.7. Ethical Consideration....................................................................................................13

3.8. Summary.......................................................................................................................14

Reference:................................................................................................................................15
Investigating the development of implementing Artificial Intelligence and Blockchain
Technologies in Banking Industry
Student’s name
Chapter 1: Introduction
1.1. Background
Technology has influenced many parts of life over time. The lifestyle in the past and how we
live now are significantly different, owing to technological advancements. Changes in
technology have an impact on how we work, travel, socialize, and play (Yusuf and Banawi,
2013). Computers, artificial intelligence, smartphones, tablets, blockchain, cloud computing
and laptops are examples of current digital systems that have grown over time. This
dissertation will focus on the two most popular technologies artificial intelligence (AI) and
blockchain technology, and how these technologies influence the development of Banking
industry. Digital disruption is reshaping sectors and altering company operations. In today's
technology-driven environment, every industry is evaluating possibilities and implementing
new ways to create value. The banking industry is undergoing significant changes, the most
notable of which is the growth in customer-centricity. Banks may reap the benefits of
digitization by combining blockchain technology with Artificial Intelligence (AI), which
helps them compete with FinTech businesses. According to Singh, (2020), a joint study done
by the National Business Research Institute and the Narrative Science, roughly 32% of
financial service providers are already adopting AI technologies such as Predictive Analytics
and Voice Recognition, among others.

As opined by Brynjolfsson and Mcafee, (2017), Artificial intelligence (AI) is the capability of
a computer or a computer-controlled robot to accomplish tasks that would normally be
performed by intelligent beings. Artificial intelligence algorithms are created to make
judgments based on data that is often updated in real time. They differ from passive devices,
which are limited to mechanical responses. They gather data from a number of sources using
sensors, digital data, or remote data, evaluate the material in real time, and act on the insights
gained from the data. By the use of decentralisation and cryptographic hashing, blockchain,
also known as Distributed Ledger Technology (DLT), provides the record of any digital asset
unchangeable and transparent (Rossi and VK, 2017). The inherent security features of
blockchain, as well as its public ledger, made it an ideal technology for practically every
industry. Blockchain is a particularly promising and disruptive technology because it reduces
risk, eliminates fraud, and provides scalable transparency for a wide range of applications.
The purpose of blockchain is to enable for the recording and distribution of digital data
without the ability to modify it.
As a result, both technologies are critical in safeguarding and enhancing customer banking
processes and data. As stated by Maxmudjanovna, Abdurasulovna, and Erkinovna, (2020),
Blockchain has mostly concentrated on drastically transforming the financial industry,
whereas artificial intelligence has prioritised easy communication, data processing, and
security. Regardless of their differences, the strategic alliance of both sophisticated
technologies plays a critical part in transactions and interaction procedures. AI adoption
increases internal banking operations by allowing for quick and intelligent decision-making,
while blockchain can give transparent gathered information with the assurance of traceability.
However, integrating both advanced technologies require careful calibration and planning,
taking into account potential risks and problems in addition to their incredible benefits
(Marwala and Xing, 2018). As a result, both AI and blockchain technology have the
capability to become the primary driving force of innovation in both organisations and people
in the current day. The purpose of this dissertation was to investigate the function of Artificial
Intelligence (AI) and Blockchain Technologies in the development of Banking Industry.

1.2. Aim of the Research

As opined by Wolff, (2021), technology has enhanced work environment from the Industrial
Revolution to the present day. The major innovation of technology artificial intelligence and
blockchain technology has made work easier in every industry. Banking industry one of the
oldest industries has evolved due to this development of technology. Therefore, the aim of the
research is to analyse in what way the artificial intelligence and blockchain technology has
influenced the banking industry.

1.3. Objectives of the Research

The aim of this research paper is to examine, distinguish, and analyse the impact of artificial
intelligence and blockchain technology in the banking business, depending on a knowledge
of the selected topic and available literature. This paper will be based on primary research
study in order to acquire this research goal, which will also assist the researcher in
accomplishing the following research objectives:

 To examine how Artificial Intelligence (AI) and Blockchain technologies can be

implemented in Banking Industry.
 To investigate the benefits of Artificial Intelligence (AI) and Blockchain Technology
for Banking Industry.
  Banking Industry's hurdles in implementing Artificial Intelligence (AI) and
Blockchain Technologies were investigated.

1.4. Research Questions

A primary research question has been established based on the research aim and objectives as
determined above, which will guide the direction of this research project. It as follows:

What role does Artificial Intelligence (AI) and Blockchain technology play at Banking
Industry in protecting financial transactions?

The secondary questions of the research are as follows:

 What are the various ways in which Artificial Intelligence (AI) and Blockchain
technologies could be implemented in Banking Industry?
 What are the benefits of Blockchain and Artificial Intelligence (AI) for Banking
Industry?
 What hurdles does Banking Industry face in implementing Artificial Intelligence (AI)
and Blockchain Technologies?

1.5. Rationale
The banking industry has been flourishing since the 18th century, and it is considered one of
the oldest existing industries. With each passing year, it has improved and developed.
However, in recent times, technology has helped to change the sector. As opined by
Mavlutova and Volkova, (2019), banks have always been associated with long lines and an
overwhelming quantity of paperwork. The demand for labour and papers has decreased
dramatically as a result of technological developments in the banking business. The old
banking system was exhausting and time-consuming, resulting in unsatisfactory client
experiences. This was due to the fact that one had to wait in long lines, file numerous papers,
and present physically. The introduction of net banking services has lowered the amount of
time one spends on banking-related duties while also ensuring hassle-free customer support
even from a distance (Karsh,2020). Therefore, this topic is selected to do a detail study and
understand in what way the technology, specifically artificial intelligence and blockchain
technology has helped in the development of banking industry.

Blockchain and artificial intelligence (AI) are widely considered to be gaining popularity at a
rapid pace. Artificial intelligence (AI) and blockchain are both technologically advanced and
have substantial business implications. Blockchain and artificial intelligence (AI) are two of
the most revolutionary technologies of the future, and they will change the way people live,
collaborate, and communicate (Marwala and Xing, 2018). The intersection between
blockchain and AI is essential since both deal with data and value. Blockchain technology
may be used to securely store and distribute data or anything else of value. AI can evaluate
and produce insights from data to generate profit. AI develops a greater grasp of clients and
their behaviour based on previous experiences (Kokina and Davenport, 2017). This allows
banks to personalise financial goods and services by including unique characteristics and
logical interactions, resulting in meaningful client engagement and the development of strong
customer relationships. AI assists banks in predicting future events and trends by evaluating
past behaviour and predicting future scenarios. This aids banks in the detection of fraud, the
detection of anti-money laundering patterns, and the formulation of customer
recommendations. As stated by Peters and Panayi, (2016), since the asset first occurs in a
transaction on the blockchain, blockchain keeps an everlasting record of transactions and thus
asset ownership. For numerous asset types, this considerably decreases risk and the demand
for corresponding mitigation procedures. Theft, fraud, and illegal selling of high-value assets
and intellectual rights will be reduced as a result of this ability. It will also assist in the
creation of a digital footprint on the blockchain for items whose origin impacts value.

Due to the substantial use as well as roles of IT systems in the banking industry, AI has been
utilised in recent days primarily to analyse transactional operations and thus strives to give a
tailored service to its consumers and clients (Mavlutova and Volkova, 2019). As a result, AI
will continue to play an important role in the banking sector. As stated by Caron, (2019), a
study that supports the use of AI in banking found that banks have recognised AI as the next
technology frontier for leveraging digital investments to generate more consumers. On the
other hand, many banks are implementing blockchain technology as they provide seamless
lending and banking services and reduces the risk in operations. Various researchers have
been drawn to the wide range of applications of these technologies. Therefore, this topic is
selected to understand the influence, importance and challenges of artificial intelligence and
blockchain technology in banking industry.

1.6. Problem statement

The development of technology has made our life easier and safer; it is quite beneficial for
every industry. But along its benefits there are some problems which are faced while
implementing these technologies, the most common is difficulty in adapting these
technologies. This research paper will focus on banking industry and the technologies which
it will be discussing are artificial intelligence and blockchain technology.
Chapter 3: Methodology
3.1. Introduction
The most fundamental and effective aim of methodology in research is that all researchers
follow an acceptable theory of study to manage the data collection and results of the data. A
methodology, according to Melnikovas (2018), directs the researcher and the research paper
toward an accurate result, which affects the reliability of the study aims and questions. As a
result, the purpose of this area of the dissertation is to identify relevant theoretical
philosophies, data collecting and analysis methodologies, are involved in the methodology
chosen for this research paper. Thus, this article employs a full qualitative technique that
includes desk-based research, literature collecting, and thematic analysis. For the aim of
accomplishing systematic results, this study will use the research onion model.

Figure 1: research onion

Source: Melnikovas (2018).

3.2. Research philosophy

The research philosophy, according to Avgousti, (2013), is the first step to identify in the
methodology chapter since it offers light on the genesis, structure, and growth of knowledge.
Positivism, interpretivism, pragmatism, and realism are the four main research philosophies
(Howell, 2012). Given the purpose of the research, it was decided to take a positivist
approach to investigating artificial intelligence and blockchain technology. The reason for
utilising a positivist method is that it corresponds to the belief that the only knowledge
supported by facts is trustworthy data, which can be gathered by examining and evaluating
the same. Ryan, (2018), states that the researcher's function in positivist studies is restricted
to the act of gathering data and providing objective interpretation of that data. As a result, the
positivist research employed in this research yielded results that was both observable and
quantitative.

3.2. Research Approach

The research approach, often known as the research paradigm, is the method and technique
determined by the researcher to proceed with the study strategies, data gathering, and
analysis, (Alase, 2017). Depending on the research paradigm defined, this approach has
become the strategic theory for the execution of the research report. Deductive and inductive
research paradigms are the two most common research paradigms or techniques (Azungah,
2018). The inductive research approach was used to do study on artificial intelligence and
blockchain technology. This paradigm was an appropriate technique for this research since it
tries to achieve a theoretical view of findings, events, and facts. The research used an
inductive technique and included desk-based research on qualitative nature as well as a
literature review. The study report was able to detect answers based on bank decisions made
when adopting artificial intelligence and blockchain technology thanks to the inductive
paradigm.

Figure 2: Inductive Research

Source: Azungah, 2018.

3.3. Research Method

As stated by Hammarberg, Kirkman, and Lacey, (2016), the research method is the plan and
technique that dictates how data is identified, selected, processed, and analysed. As a result, it
is the most important theoretical procedure in research since it dictates how data is processed,
and without it, research dissertations are imperfect. Quantitative and qualitative research
procedures are the two types of research methodologies that essentially embrace data
synthesis in research (Queirós, Faria, and Almeida, 2017). In this research paper qualitative
research was conducted to examine, and analyse previous data, effectively explaining how
the previous data is influencing the current research. The methods and strategies of study was
able to be classified depending on the process of data identification, such as investigative,
experimental, questionnaires, and research projects, using qualitative research technique.

3.4. Collection and Analysis of data

Data collection

According to Johnston, (2017), the acquired data is the understanding and documentation that
leads to the dissertation's goals being met. Primary data collection and secondary data
collection are the two kinds of data collection procedures used in this study (Choy, 2014).
Because the current study is classified as secondary research, the data will be collected using
a secondary data collection approach that includes a variety of tactics and methods.
Secondary data was gathered from a variety of external sources, the majority of which were
found on the internet, journals, and books. It is also worth noting that the data was gathered
using numerous study resources on artificial intelligence and blockchain technology, as well
as their importance in the banking business, which were published in several research studies
and similar publications.

Data analysis

It's essential to mention that, just as data collecting is critical for a proper research technique,
data analysis is also significant. According to Guest, MacQueen, and Namey, (2012), this is
because it is only via competent data analysis that it can be determined whether the data
obtained are suited to the research topic. Through discussions, comparisons, opposing, and,
most importantly, synthesising, an in-depth investigation of the function and impact of
artificial intelligence and blockchain technology on the evolution of the banking industry, as
well as adaptability, was performed in the current research effort. There are various
approaches for completing the procedure of data analysis, such as content analysis, thematic
analysis, ground analysis, and others (Castleberry and Nolen, 2018). Thematic analysis was
used to examine the data obtained on the impact of artificial intelligence and blockchain
technology on banking industry as well as adaptability in the current research project. The
main rationale for choosing theme analysis over other methods is because of its practical
approach. Other qualitative data analysis tools, like content analysis and narrative analysis,
were not used since they were not appropriate for the goal of this study. Thematic analysis,
according to Castleberry and Nolen, (2018), is a method used to analyse qualitative data by
focusing on key themes or patterns in the research. Themes that were unrelated to the
research concerns were deleted, and those that were similar to other issues were grouped
together. The findings section discusses the information gathered following the analysis.

3.5. Sampling of the data

There will be no sampling because this is a secondary research project rather than a primary
research project. It's also worth noting that data sampling isn't required because there isn't a
single case study for any given organisation. Some borders have been defined for the
purposes of conducting this research. One of the constraints is the inclusion and exclusion
criteria. Inclusion criteria, on the one hand, refer to the materials or data that are deemed
appropriate for use in a research endeavour. Exclusion criteria, on the other hand, are used to
filter out specific sorts of data. The previous study, which is continuously being modified, is
only addressed in the introduction and findings sections at this time. It was also confirmed
that data was gathered only from the most appropriate and up-to-date sources.

3.6. Validity and Reliability

It implies that reliability, refers to the reliability of a study project, whilst validity, shows that
reliability is appropriate. To determine the current research effort is both reliable and valid, it
is important to note that the primary source of the material acquired was from papers and
journals published within the last 8-10 years, ensuring that the data is not obsolete. The
work's validity was determined by verifying that the procedures are consistently applied and
that the study conditions are uniform. Because only professional data was used in the study,
the data is guaranteed to be reliable and valid. It is also worth noting that the best technique
to assess the validity and trustworthiness of a secondary research paper is to compare it to the
other secondary research paper on the same topic. If the outcomes of two works are identical,
it can be assumed that the study conducted yields accurate data.

3.7. Ethical Consideration

According to the Clough and Nutbrown, (2012), using secondary data is a very ethical
strategy. As a result, ethical issues are key aspects of such research, as any errors could result
in the study's failure. As a result, when employing secondary data, there are several major
ethical considerations. Certain principles and disciplines were maintained during the whole
study process. To commence, all secondary data has been provided clearly and effectively.
The data collection, processing, and interpretation processes were all free of bias. No work
has been copied, according to the promise. The rights of intellectual property have been
protected. All of the data in the article has been double-checked and amended to ensure that it
is free of errors. There has been no impact to the study as a result of any mistakes.
Information has been properly acknowledged and cited to avoid plagiarism. Objectivity was
created by eliminating bias. In addition, no personal or financial gain was employed to sway
the results of the study.

3.8. Summary
Ultimately, as the present study is secondary in character, data was collected from secondary
sources. As earlier mentioned, the Model of Research Onion will be employed in the research
methodology completion process as it is a beneficial guide for performing research
methodology. It was approached from a positivist philosophical standpoint. Thematic
analysis was utilised to study the collected data as it is thought to be the best method for data
analysis. The validity and reliability of the research paper is mentioned how appropriate the
study was. Moreover, the research was done keeping in my mind that no data and information
was harmed and plagiarised.
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