Modeling Factors Influencing Blockchain Adoption in Retail Banking: A DEMATEL-Based Approach

In the rapidly evolving digital landscape, integrating blockchain technology into retail banking has emerged as a pivotal strategy for operational efficiency and competitive differentiation. This study employs the Decision Making Trial and Evaluation Laboratory (DEMATEL) methodology to explore the relationships among the main factors shaping blockchain adoption, highlighting their direct and indirect effects on banks’ implementation efforts. The findings reveal that technology cost exerts the strongest causal influence on blockchain adoption, significantly affecting all other factors. Moreover, the interaction between technology cost and blockchain scalability is mediated by regulatory requirements, customer acceptance, and industry collaboration. Specifically, regulatory compliance obligations and associated uncertainties can magnify the cost barrier, while higher expenses may discourage customer engagement and limit large-scale adoption. Simultaneously, collaborations among banks and technology partners can alleviate cost burdens, thereby promoting more widespread implementation. These findings highlight the need for careful financial planning, strategic investment, and regulatory engagement to manage the high costs inherent in blockchain projects. Furthermore, banks should consider proactive customer education to convey the benefits of blockchain-driven innovations, thereby building trust and encouraging utilization.