This study aims to examine the feasibility of blockchain adoption during investment banks’ Know Your Customer (KYC) validation processes. It studies the role played by government in regulating the blockchain-based KYC process.
A framework based on the extended technology acceptance model (TAM) was conceptualised to formulate six hypotheses. Based on this, a structured questionnaire was developed and administered among the employees of investment banks through a multi-stage sampling technique. The final sample, comprising 605 responses, was analysed using a covariance-based structural equation modelling (Mediation Analysis) on JASP V.19.
The present research explains that the government, as a mediating variable, has a 45.7% direct impact and 54.3% indirect effect on investment banks in the adoption and actual usage of blockchain technology for KYC validation. The perceived ease of use, perceived usefulness and attitude to use technology are key factors that influence its adoption for front-office operations. Perceived ease of use is a dominant indicator within the model.
This study contributes theoretically by extending the existing TAM model with its practical application in the KYC process during validation of customer documentation in the banking industry, adding practical relevance to the regulatory framework.
The research derives its originality from the mediating role of government regulation in implementing KYC through blockchain. It proposes a blueprint of a working model that can be internalised to optimise the processes, extending the existing theory and its application with practical relevance.
