FACTORS THAT AFFFECT FINANCIAL INSTITUTIONS FROM ADDING BLOCKCHAIN TECHNOLOGY IN THEIR OPERATIONS IN TANZANIA :EMPIRICAL INVESTIGATION OF SELECTED COMMERCIAL BANKS IN TANZANIA

Abstract

ABSTRACT The study aimed at investigating the factors that affect financial institutions from adding blockchain technology in their operations in Tanzania, a case of four selected commercial banks in Arusha. The study was conducted as a descriptive research design; however, the quantitative and qualitative approaches were employed during data collection, data analysis, and data presentation. The research was located at Arusha City whereas four banks were selected to be involved in the study, the selected banks include; CRDB. NBC, NMB, and Standard Chartered Banks. This study employed a total sample size of 168 employees from Data analysis for quantitative information involved a descriptive analysis and inferential analysis in particular the multiple linear regression. After analysis, the findings showed that to a large extent technological barriers is amongst the factors that affect financial institutions from adding the blockchain technology. The study also indicated that adding to blockchain technology to financial instutions is affected by organizational banners. In case of knowledge gaps, the study found that there is a little knowledge practice in blockchain technology in financial institutions in Arusha city because the organizations are lacking the insights on knowledge set in accounting, investment, and finance. Moreover, most of financial organizations fail to level the required knowledge set such as network and smooth environment for application of blockchain technology. The inferential analysis found that all determinants (technological barriers, organizational barriers, and knowledge gaps) are statistically significant (p<0.05) towards adding blockchain technology in financial institutions. The study concludes that adding to blockchain in financial instititions at Arusha city is affected cted by technological I that barriers, financial rs, finbanncciiaali barriers, and knowledge gaps. The study develops a recommendation operators to institutions should invest efforts in modern technologyathineitrhmeiarnoapgeerras and rs 0 t o operations. Additionally, titoona l y, th financial institition should also add efforts to encourage fear from accepting and apply the blockchain technology. Managers should involve themselves bai n answers for their doubt about this emerging t technology, they should be emphasized to understand how the organization's data are secured with no risk of vulnerability in security. Key Words: Blockcahin technology, technological barriers. Organization barriers, knowledge gaps, and financial institutions.