The Role of Blockchain Technology in Managing Efficiency and Cost Reduction in The Banking Sector in Jordan

This study analyzed how blockchain technology can support efficiency improvements and cost reduction in the banking industry in Jordan.A survey of 68 bank managers examined the potential benefits of blockchain features including automation, transparency, improved traceability and security.Results of regression analysis found these blockchain aspects positively influenced efficiency and cost reduction.Improved traceability showed the highest impact, explaining 66.6% of variance in efficiency and cost reduction.The findings imply blockchain can streamline processes, prevent fraud, eliminate intermediaries, and strengthen data integrity to reduce expenses for banks.This provides empirical evidence from Jordan on blockchain's capabilities to strengthen bank performance by reducing transaction costs and improving productivity.The main limitation is the small sample size concentrated only in Jordan.Further research should investigate blockchain adoption across wider banking contexts.This study contributes timely insights on blockchain's promise to support banks in enhancing system efficiency and managing costs.