Advancing IAM in the Finance Sector by Integrating Zero Trust and Blockchain Technology

Safeguarding confidential data and information from increasingly complex cyberattacks is critical in the financial industry. This paper presents a novel framework that combines blockchain technology and the Zero Trust model to strengthen Identity and Access Management (IAM) systems, addressing prevalent security and privacy concerns. Traditional IAM systems often fail to counter advanced cyberattacks and insider threats effectively; this research advances towards a more resilient IAM system. Employing a mixed-methods approach, the study combines qualitative evaluations of security principles and threat modelling with quantitative analysis through the deployment and testing of a banking application. This application demonstrates the practical application of blockchain-enhanced IAM within a Zero Trust architecture, focusing on authentication, authorization, and transactional integrity. Security and performance tests validate the framework’s effectiveness in preventing unauthorised access and data breaches while ensuring scalability and user privacy. Blockchain technology enhances the security layers and introduces a decentralised trust mechanism, enriching the IAM ecosystem within financial services. Our study proposes a framework that significantly improves IAM systems’ security and reliability in the financial sector, as evidenced by successful deployment and testing outcomes.