Authors - Felix Kabwe, Jackson Phiri Abstract - This study explores how blockchain-based Identity and Access Management (IAM) systems can enhance the security and efficiency of Digital Financial Services (DFS). As DFS environments grow more complex and involve multiple stakeholders, traditional IAM systems face challenges such as centralization, limited interoperability, and scalability constraints. Blockchain offers a compelling alternative by enabling decentralized, transparent, and tamper-resistant identity management. The study compares three main IAM models: centralized systems supported by blockchain, federated identity management, and Self-Sovereign Identity (SSI). Using the Technology-Organization-Environment (TOE) framework alongside a semi-quantitative scoring approach, the research evaluates these models across key factors including security, privacy, usability, scalability, governance, cost, and regulatory alignment. The findings highlight clear trade-offs. Centralized systems excel in performance, cost efficiency, and regulatory compliance but are vulnerable to single points of failure. Federated models strike a balance by improving interoperability and user experience, though they introduce governance complexity. SSI provides strong privacy and user control but faces challenges in usability, scalability, and regulatory acceptance. Overall, no single model fully meets DFS needs. Federated systems are currently the most practical, while hybrid federated–SSI approaches offer the most flexible, scalable, and user-focused solution.
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