Blockchain-Based Business Process Management (BPM) for Finance: The Case of Credit and Claim Requests

Because of the competitive economy, organizations today seek to rationalize, innovate, and adapt to changing environments and circumstances as part of business process improvement efforts. The strength of blockchain technology lies in its usage as an apt technology to enhance the efficiency and effectiveness of business processes; furthermore, it prevents the use of erroneous or obsolete data and allows sharing of confidential data securely. The use of superior technology in the execution and automation of business processes brings opportunities to rethink the specific process itself as well. Business processes modeling and verification are essential to control and assure organizational evolution, therefore, the aim of this paper is three-fold: firstly, to provide business process management patterns in finance, based on blockchain, specifically for the loan-application process in the banking industry and claim process in the insurance industry that could be used and customized by companies; secondly, to critically analyze challenges and opportunities from the introduction of such approach for companies, and thirdly, to outline how companies can implement the loan business process as a web service. Partner companies (a bank and an insurance company) formulated the potential requirements for M2P along with the application of blockchain technology. An experimental design framework was established that gave the necessary services to model the requirements, check the models, and operationalize the models. The applied research methodologies are as follows: design science research paradigm and software case study, model-to-programming (M2P) of business processes, and utilization of patterns of workflow and blockchain.