The Impact of Blockchain Adoption on Financial Performance in Fintech Firms: A Review of The Literature

Abstract

 This write-up explores the impact of blockchain adoption on financial performance in fintech firms. Fintech's integration of blockchain technology enhances revenue, reduces costs, and augments competitiveness. Key findings reveal revenue growth through asset tokenization and efficient cross-border payments. Cost savings arise from intermediary removal and smart contract automation. Fintech firms collaborating with blockchain startups gain market share. Enhanced profitability and risk management are observed. Challenges include scalability, regulatory uncertainty, and interoperability issues. Limited long-term data availability and industry-specific variations pose limitations. Implications suggest further research into long-term effects, subsector-specific investigations, and comparative analyses. Fintech firms are encouraged to strategically adopt blockchain while emphasizing compliance and risk management.