The study examines application of blockchain technology in business, a case of financial institution, banking sector.

The survey questionnaire was administered to the users, customer of banking industries that uses application, online payment that facilitates transfers, and online business within the campus and at various banks location within Yola metropolitan area of Adamawa state. The descriptive table was used to distribute questionnaire to the customers, users of the Blockchain Technology payment system in Guaranty Trust Bank (GTB), Stanbic IBTC Bank and UBA within Yola Metropolis area of Adamawa state.

Purposive sampling method was used to collect data from the study area. The statistical package for social science (SPSS) was used to the analysis which is used to determine the impact of BlockchainTechnology payment on banking industry. The result was categories into simple percentage, inferential analysis, simple percentage, simple frequency, and person chi-square.

The study revealed that, blockchain technology does not influence payment in the Nigerian banking industry; blockchain provides high level of security for exchanging data and money.

The study concluded that application of blockchain technology has helped the businesses in Nigeria and world. The study recommends that further recommended that; other researchers should further analyze if there is any relationship in the demand of these values; the financial institution and government should have associate with each business benefits; the research should be done base on a systematic analysis of actual company investment rather than theoretical benefits and application of the technology; businesses should be allowed to obtain the business value of blockchain for companies in real project.




Chapter one

1.1  Introduction

1.2  Background of the Study

Block chain Technology is a distributed records system which coordinates the transactional database. It is a secured record system in the form of digital event. Block chain technology are supported using the enabled crypto currencies such as Bitcoin and other currency which are more valuable enablers of economic (Beck et al., 2017) social and financial transactional records system. The technology is built on the digital network that keeps records of every data transaction in a network, block chain does not require third party verification, and it has been used by large industries (Beck et al., 2017)

The global economy transactional system which usually depend on the organizational corporations, individual and trust entities which create, store, equally facilitate essential work in a system. Large organization which uses data for their records system construct, maintain their business platform (Wu & Liang, 2017). The financial institution such as banking sectors usually uses, store customer information in form of records in, takes advantage of the blockchian technology in dealing with their business transaction national and international. The financial sector such as banking industry has led the way for developing applications, model which are widely used by customers using blockchain technology (Friedrich et al., 2017). There are other areas where Blockchain Technology is applicable, professional insurance corporation, Health care providers, entertainment industry, shipping and transportation are actively using the block chain technology for coordinating, processing, directing and operational functionality of their business (Beck et al., 2017).

 the European Commission gave a report that blockchain technology has the potential to overhaul a lot of businesses, it was, however, said that blockchain technology will reduce the cost of running banks, also Bloomberg release an article that Google is among the top active blockchain investors (Witold & Adrian, 2018). Others players in the sector such as banks, store customer financial records, hospital collect patient information store it in form of records system, and uses it for diagnosis and treatment. University as higher tertiary institution collect students information, stores it in the university repository system for academic purposes. The above information which is stored in form of records which is used for key decision making and planning in an organization.

The purpose of the study is to determine the impact of blockchain technology in enhancing customer payment in banking industry. This is to investigate how Blockchain technology influences payment in banking industry.  A lot of financial institution is currently testing their transaction on the blockchain, a lot of financial giants such as J.P Morgan, Goldman Sachs and other banks such as standard chartered bank established their laboratories by collaborating with blockchain platforms(Ye & Chen, 2016).

 The technology have  revolutionized the banking business, it requires new sources of growth to reverse the current downtrend, the advancement of FinTech is a new trend it is featured by the revolution in the application of banking industry.

Whenever  a technology is introduced into the market it pose a new challenge, most of the leading firm fail out to stand on top of their competitor in the service industry this is as a result of technology discontinuities (Friedrich et al., 2017). The financial services such as bank has gone into far-reaching transformation, during the previous years, this is as the result of the crises the institution witness in their financial services in the previous years. The computerization movement into digital process, services and electronic delivery of online payment services make many institutions to rethink of their processes, plans and strategies. It is under this development that a new technology called Blockchain is attracting attention in research and interest in the financial banking industry. As the technology has been directing payments transaction between customers, parties and affiliation without any intermediaries. It is now understood that, the contribution of the technology in payment industry has make remarkably advances of adoption of the technology in banking industry.


1.3 Problem Statement


There has been an underlying reduction in the cost of cross border business transactions as a result of blockchain technology; this was as the result of the used of the technology for interbank, transactional processing. The payment industries have suffered a lot of setbacks in the past, Blockchain chain technology have been used for business to  business  transaction (Beck et al., 2017). Blockchain has also facilitated payment systems to transfer funds in foreign exchange and real-time payment by networking all the workstations on the network payment gateway, rather than processing it through the central bank (Wu & Liang, 2017), IBM predicted that from now to 4 years to come Blockchain could have effected all the payment being handled by the commercial banks. Research have been done on the payment model in business industry, similarly  Blockchain technology have received a commendable significance interest in financial technology (FinTech), it uses several technology such as data storage, transmission and encryption algorithms (Ye & Chen, 2016). But studies have not been conducted in the application of Blockchain technology in banking sector with regards to payment in financial institution. Most studies have center their work in Blockchain in business in banking sector in another country, on different economy. To the best of my knowledge and research work was not done on the application of Blockcahin Technology in payment in banking industries in Yola Metropolis area of Adamawa State.


1.4 Aim and Objective of the Study


The general aim of the study is to investigate the impact of Blockchain technology in enhancing payment in banking sector in Nigeria. The objectives of the study are as follows:


v  To determine the impact of blockchain in enhancing payment in banking sector?

v  How does Blockchain technology influence payment system in banking industry? 


1.5        Research Question


v What is the impact of Blockchain technology in enhancing payment in banking industry?

v What influence does Blockchain Technology have on payment system in banking industry?


  1.6 Research Hypothesis


v Blockchain technology has no impact in enhancing payment in banking industry?

v Blockchain technology has impact in enhancing payment in banking industry?


v Blockchain Technology has no influence on payment in banking industry?

v Blockchain Technology has influence on payment in banking industry?


  1.7 Significance of the study


The research is relevant because blockchain technology has provided a decentralized digital world to make information infrastructure available to all third parties in the networking system. Also, it is applicable in different financial industries, payment platforms, entertainment industries, foreign exchange. It is beneficial because it has digitalized the global online services and financial transactions without disruption


1.8 Scope and Limitation of the study


The scope of the study is within the American University of Nigerian Students, and all the user of the payment platforms of commercial banks within Yola metropolis area of Adamawa state. The study is limited to the users of applications of payment platforms in commercial banks in Yola Metropolis. The study is limited of responses from the users, and it is also limited on time.


 1.9 Outline of the Report


The research is made up of five chapters:

  • Chapter one gives the introduction, background of the study. Also, the problem statement, aim and objectives, of the study, limitation of the study are all contains in chapter one.
  • The chapter two which is the second chapter gives the synthesis of the literature, scholars that contribute to the topic, and how the scholar intends to work otherwise from the scholar he cited. The relevance of the research are also highlighted in the chapter
  • The chapter three of the project gives the method, methodology, gives the research design and instrument used, and the statistical tools that will be used for analysis. 
  • The findings are in chapter Four. The analysis that has been done, interpretations, presentations of data in tables and graphs
  • The chapter five of the research gives conclusion. The data that has been analyzed the result from the data interpretation. The summary, recommendation, and conclusion are all contains in the chapter