This paper is a review of the literature on blockchain in relationship with banking sector, which is facing numerous problems. Compared to the current trend in technological development, the traditional uncompetitive banking system is non-transparent, complicated with multiple records kept separately and various intermediate parties which in consequence, give rise to multiple costs, transaction time and dispute in banks, especially in case of international payment. A strategy to deal with financial inclusion is also an issue, along with the lacking credit information system. These problems, however, can be addressed by applying blockchain, or distributed ledger, which is a newly emerging technology with tremendous potential mainly from its nature of generating a single transparent record and the ability to eliminate unnecessary intermediaries.
The paper provides basic concepts of blockchain technology, identifies some prominent problems in banks along with specific potential benefits, and afterwards collects and reviews actual cases. The review is organized around three research questions. The researched knowledge on these questions is summarized and questions for future researches are also included.