Challenges Faced By Banking Businesses In Australia

Project Scope

Project objective

The objective of this research is to analyze the exact nature of the challenges which are being faced by the banking businesses in the country. The aim of this research is to provide suggestions and recommendations, based on literary and empirical evidences regarding the ways in which the challenges faced by the banking businesses in Australia

Project scope

The scope of the research is wide because the role of bank is vital in each country and the banking industry of Australia is facing challenges in the contemporary global business scenario. It has been apparent that the bank has a huge scope of exploration, interpretation in the concerned factor.

Literature review

As per Black, Morrison and Gregersen, (2013), the global business has changed with formation and replacement of trends with changes in production and consumption framework. It has been found that Australian bank industry has major four players such as the Commonwealth Bank, the National Australia Bank, Australia and New Zealand Banking Group and the Westpac Corp. These four largest banks do not operate within Australia but also in different other countries. However, these banks are the major reason for the expansion of Australian economy in an affirmative way but these are seen to be experiencing several crucial challenges in the global business scenario (Ferraro and Briody, 2013). It has been found that there is a number of challenges in a contemporary business environment such as the growth of new and emerging markets, innovation, communication and huge competition. It has been analyzed that developing countries especially in Asian Countries, new and rapidly expanding markets are being created in these countries with the increase in the standard of living (Cavusgil, Knight, Riesenberger, Rammal and Rose, 2014). It has turned into considerable influence on the global businesses. Another factor is innovation in which the products and services are upgraded in every industry. This has become the challenge aspect for the established multinational companies as they are facing extensive competition. Communication has become wider in nowadays which increase the role of it by providing depth information about the products and services to make aware customers. The competition has increased due to development of the small and medium enterprise entrants in the industries (Claessens and Van Horen, 2012).

It has been discussed earlier that the Royal Commission of the Government of Australia is the biggest bank of Australia. This bank has around 147 Authorised Deposit-Taking Institutions (Asianbankingandfinance.net, 2018). This bank is operated in a number of places in Australia as well as internationally. It has been found that banking business has faced challenges in Australia due to lack of efficiency, lack of trust, usage of internet banking, up gradation of services and fluctuating foreign exchange rates. According to Amiti and Khandelwal, (2013), the banks of Australia have low efficiency in the term of cost and technical in comparison to other global banks. Lack of trust is another challenge for the banks of Australia as the burdened with several huge scandals and frauds increased which in turn has led to the loss of welfare of the customers. Online banking is increased day by day which attracts a number of customers to go for an international bank and it has been found in the context of Australian bank that these banks have been lagging behind in the aspects of the development of proper online banking framework. The technology in the banking services has increased which encourage number of banks to come in the market with upgraded and diversified services in all domains, in which aspects the comparative risk-averse big banking businesses have been lagging behind (Dunning, 2014). Flexible exchanging rate is being adopted by all the major economies and the proposition of the constant amending foreign exchange rate is felt by the banking companies of the country. It is crucial for the banking industry to compete with other banks by evaluating the strategies which have been adopted by them.

Literature Review

Research question

The research questions and the hypothesis of the research paper are defined below:

Research questions

• What sorts of challenges are faced by the banks of Australia?
• What are the challenges in the contemporary business environment?  

Hypothesis

• Challenges of banking industry may impact the entire activity of the business of Australians Banks.
• Challenges of banking industry may not impact the entire activity of the business of Australians Banks.

Research methodology

Research methodology is the imperative element for the research paper in which a researcher accumulates the desired information from the various available sources.

Research Methods

Qualitative as well as quantitative approach has been considered while initiating the research as it helps researcher to get the information regarding the topic in both quality as well as quantity manner. Quantitative approach given information in the form of statistical form on the other hand qualitative approach is given information in the descriptive way. Both approaches are considered for this research .Along with that primary as well as secondary sources have been taken to accomplish the research (Nirmala,  2013).

Data collection 
The key objective of collecting the data is to get realistic and quality information regarding the research topic. To gather the information, primary and secondary both method have been taken because these methods provide an opportunity to the researcher to get information in an effective way (Turkenburg and McAuley, 2013). The researcher has prepared a questionnaire for the employee of Bank of Australia to get information through primary data in which 10 questions are entailed. These questions are related to the challenges that are facing the banks of Australia in now a day. Secondary sources are also used by the researcher to get depth information regarding the topic in which journal articles, books, online sources are been used (Johnston, 2014).
Sampling techniques 
The data has been collected in a huge manner that is why it would not be possible for the researcher to analyze the entire data at once without applying techniques. That is why random sampling technique has been chosen to analyze the huge data because it facilitates researcher to give chance all selected sample (Nishad and Sankar, 2016). It is the effective technique that helps to provide the equal chance.
Research strategy 
The research can be more effective if it is done within the time frame that is why it is required for the researcher to apply effective research strategy. The objective of the research can be attained in an effective manner if activities of the research synchronize in table form with time scale. That is why the researcher has made time scale for all the activities in a systematic manner so that all activity can be synchronized in a sequence way. The systematic approach has been considered to make the action plan for the research. It assists to accomplish the task within time frame without getting delay. The trust of readers would be increased due to give research outcomes on time (Wetherly, 2014).
Target market
 It is vital for the researcher to set the target market so that the problem could not arise regarding where data can be gathered. It helps to gather the data in an effective manner without getting confused and along with that it does not consume the time. The combination of primary as well as secondary sources has been considered to set out the target (Thomas, 2015). The questionnaire has been prepared for the employees of bank so that they give an instant answer to the selected questions regarding the challenges of bank. On the other hand secondary sources assisted to gather the data through journal articles, books and online sources which exist after the year of 2009.
Ethical consideration
the research should be made with ethic and valid manner so that the trust of the readers can be made over it in an effective manner. Along with that it helps the researcher to carry out this behavior for accomplishing the research. This research has been made after keeping consideration of ethics. The value and emotions of person have kept great value by this research. The collected data regarding research through questionnaire has been spoiled after using in the research so that the personal information of the employee cannot be revealed (Smith, 2015). However, the researcher has faced the issue of plagiarism and copyright issue at the time of collections data by secondary sources.

Research Questions

Limitations 

The limitation is the part of the research that show the issues faced by the researcher at the time of accomplishing the research. These limitations impact the research study in adverse way that can impact the result of the research. Lack of time is the key limitation for the researcher by which the researcher is not able to gather the information through considering each factor of the research activity. Money constraint is another limitation for the researcher because of it the researcher is unable to get access to collecting the data which is the cause of collecting the valuable data. Lack of access to the data is deemed as the limitations that being the cause of subject at the moment of performing the research.

Time scale

Conclusion:

In the limelight of above discussion, it can be concluded that banking business in Australia is most dynamic and developed ones. It has been found that the banking business of Australia is facing number of issues in the contemporary global business scenario. The risks and challenges in the context of research topic has been defined in an efficient manner. The research methodology section has been defined in an appropriate way by including research approach, strategy and techniques that facilitates researcher to get data in a sophisticated way. The action plan and limitations have been elaborated for this research paper to enhance the better understanding about the research paper.

This paper will tell about the banking industry of the Australia country that faces a number of challenges as the global economy has experienced wide modifications and dynamics over the years, with the conditions regarding economic that become more multidimensional and diversified. The global business environment has become more competitive and complex for any sorts of business and industries. The project objective and scope will be defined in an effective way which helps to understand the entire concept of the research paper. The research methodology will elaborate the research approaches, techniques, and strategy in which the way of gathering the data for the research is described.

References:

Amiti, M. and Khandelwal, A.K., 2013. Import competition and quality upgrading. Review of Economics and Statistics, 95(2), pp.476-490.

Asianbankingandfinance.net (2018). Combined market share of Australia’s big four banks. [online] Asian Banking & Finance. Available at: https://asianbankingandfinance.net/retail-banking/exclusive/combined-market-share-australias-big-four-banks [Accessed 25 May. 2018].

Black, J.S., Morrison, A.J. and Gregersen, H.B., 2013. Global explorers: The next generation of leaders. Routledge.

Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.

Claessens, S. and Van Horen, N., 2012. Being a foreigner among domestic banks: Asset or liability?. Journal of Banking & Finance, 36(5), pp.1276-1290.

Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.

Ferraro, G.P. and Briody, E.K., 2013. The cultural dimension of global business. Upper Saddle River: Pearson.

Johnston, M. P., 2014,“Secondary Data Analysis: A Method of which the Time Has Come”,Qualitative and Quantitative Methods in Libraries, pp. 619 –626.

Nirmala, Y., 2013. Chapter four: research design,,Language in India, vol. 13, no. 2, pp. 102.

Nishad, P.M. & Sankar, S., 2016. Efficient random sampling statistical method to improve big data compression ratio and pattern matching techniques for compressed data, International Journal of Computer Science and Information Security, vol. 14, no. 6, pp. 179.

Smith, N.L., 2015. Using Action Design Research to Research and Develop Evaluation Practice. New Directions for Evaluation, vol. 2015, no. 148, pp. 57-72.

Thomas, J. A., 2015. Using unstructured diaries for primary data collection. Nurse researcher, vol. 22, no. 5, pp. 25.

Turkenburg, J. P. & McAuley, K. E., 2013. Data collection and processing. Acta Crystallographica Section D, vol. 69, no. 7, pp. 1193-1194.

Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford University Press.

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