A Phenomenological Exploration of Blockchain Adoption in Investment Management: Insights from Financial Managers

Abstract

Blockchain technology has significantly influenced various industries, particularly in financial management, offering advancements in transparency, security, and operational efficiency. However, the subjective experiences of financial managers adopting blockchain in investment management remain underexplored. This study seeks to address the gap in understanding how blockchain adoption affects financial managers on both a personal and professional level. We employ a phenomenological approach to explore the lived experiences of financial managers who have implemented blockchain technology in their investment management practices. Through in-depth interviews with 10 financial managers, the study identifies key themes of increased transparency, enhanced security, and the challenges of adapting to new technologies. Findings reveal that while blockchain enhances operational efficiency, its adoption presents emotional and cognitive challenges, particularly during the learning phase, such as stress and resistance to change as well as cognitive overload from new complexities. These results contribute to a deeper understanding of the impact of blockchain on financial management, shedding light on both the benefits and complexities faced by professionals in the field. The study offers valuable insights for financial institutions and policymakers seeking to understand and address the challenges of blockchain integration, particularly in managing the psychological and cognitive barriers to adoption, and it paves the way for future research on the long-term implications of blockchain in finance.