Impact of Blockchain Adoption on Financial Auditing and Regulatory Compliance in Pakistan's Banking Sector

Abstract

In this research study, the influence of blockchain adoption on audit-related financial procedures and adherence to financial rules of Pakistan's banking industry will be examined. The chosen study design would have been quantitative, and 50 banking executives who were chosen by basic random stratified sampling were given a self-administered Likert-scale questionnaire. The statistical analysis carried out on data consisted of descriptive statistics, Pearson correlation, simple linear regression, and multiple regression. The results sent in the studies suggested that implementation of the blockchain would significantly increase the speed and efficiency of financial audit and increase its accuracy, transparency, and rate of compliance with key regulations such as Anti-Money Laundering (AML) and Know Your Customer (KYC). As well, the enabling variables that are higher order that is, the technological infrastructure, regulatory clarity, accessibility to skilled employees, and finance were also statistically and positively related to the adoption of the blockchain. According to the results, the main aspects of the success of the blockchain adoption involve the investments in the digital foundation, the alterations of the regulations, the capacity building, and the finance provision. The research will present an effective empirical work to the already very sketchy collection of literature on the adoption of financial technology in developing economies and gives practical lines of action in this respect to regulators of banks, policy formers and practitioners aimed at changing financial systems of governance.