The Role of Blockchain in Decentralized Finance (DeFi) in the Saudi Financial Sector: A Field Study on Al-Ahli Bank (SNB)

Abstract

Objectives: The study aimed to examine the role of blockchain technology and its dimensions (transparency, security, transaction speed and efficiency, and operational cost reduction) in enhancing decentralized finance (DeFi) within the Saudi National Bank (SNB). Methodology: The study adopted a descriptive analytical approach. A structured questionnaire was used as the primary data collection instrument, distributed to a stratified random sample of 280 employees working in relevant departments within the bank. The collected data were statistically analyzed using SPSS. Results: The findings indicated that employees’ perceptions of blockchain technology were high, with an overall mean score of 4.08. The security dimension ranked first with a mean of 4.19, while the dependent variable recorded a high mean of 4.00. The results also confirmed the acceptance of the main research hypothesis at a significance level of 0.05. Collectively, the four dimensions explained 71.1% of the variance in enhancing decentralized finance. Security emerged as the most influential factor, followed by transparency, transaction speed and efficiency, and finally operational cost reduction. Conclusion: The study concludes that the application of blockchain technology across its various dimensions significantly contributes to strengthening decentralized finance within SNB. Security was identified as the most critical determinant, highlighting the need to reinforce cybersecurity infrastructure, develop regulatory and governance frameworks, and adopt a gradual approach toward transitioning to decentralized financial systems.