Efficiency Evaluation of Blockchain Technology Impact on Banking

In modern world, the topic of system reliability is becoming increasingly important, and states need to use decentralized cryptosystems for storing and transmitting financial information. One of the reasons for interest increased in these systems is impact of the global financial crisis, as well as existence of threats in the field of information security for present financial systems. Therefore, there is a need to form new requirements for data processing and storage technologies. And special emphasis should be placed on developments in the field of financial technologies, the so-called “fintech”. The blockchain data storage technology has become a modern phenomenon. It is highly relevant in a world where the accuracy and protection of information stored is required. This study addresses the question: is the introduction of blockchain technology into the banking sector effective? In other words, are bank expenses reduced after the introduction of this technology? Based on three-year annual reporting by banks (2015, 2016, 2017), an econometric model with random effects was constructed, characterizing the dependence of bank expenses on the introduction of blockchain technology, and also the propensity score matching was applied. As a result, an answer was given to the question of how bank expenses change after introduction of blockchain technology and results of which method can be trusted.