Abstract:
This research examines the impact of blockchain technologies on enhancing customer trust in the financial sector, with a focus on three key features: smart contracts, security at the time of the transaction, and response to the transaction. Using the Technology Acceptance Model (TAM) as its theoretical framework, the study investigates which of these blockchain features affect customer trust. Quantitative research method was adopted, and data were obtained from the 152 respondents using structured questionnaires and analyzed using descriptive tools such as frequency table, regression analysis and correlation analysis. This study shows that smart contracts provide better customer trust because of the massive automation of the process thus decreasing the chances of human error. Another key function of transactional security is the enhancement of trust, protection of data, combatting fraud and understanding purposes. Furthermore, transactional aspects of consumer responsiveness enhance trust in that services are promptly delivered in an effective and reliable manner. Out of these four factors, smart contracts are evidenced as the most influential factor for customer trust than transactional security and firm’s responsiveness. The study adds to the theoretical knowledge in how, why, and when financial firms adopt blockchain technology while offering practical guidance to relevant firms. It underscores the need to focus on the characteristics that define blockchain to solve trust issues and enhance customer perspective. Likely future research directions are investigated in other industries, other factors affecting trust, and cross-sectional studies examining the changes in trust as it grows. The findings confirm the predisposition of blockchain technologies to the creation of a new, dependable, and customer-oriented financial environment.
