Challenges Faced by Financial Institutions in Emerging Markets

THE
CHALLENGES FACED BY
FINANCIAL
INSTITUTIONS IN
EMERGING MARKETS

ABSTRACT
The report particularly summaries, the analysis is linked to the prospects for economic
growth, especially for developed and emerging markets, providing a significant context for the
financial difficulties some of them have been currently facing. Financial uncertainty has recently
come back due to numerous market worries, including (just to mention a few) changing views of
the central bank's exposure course towards relatively low interest costs as well as the rapid
stabilization of the US dollar; the start of the European Central Bank's monetary stimulus as well
as its effect on inflation perceptions and government bonds; weak and unpredictable. Additional
the support and threats for the finance market is like a dispute between current German state and
its lenders and ongoing global instability. Competitiveness among development in various
markets allows financial institutions to introduce products that adhere to foreign standards, while
fulfilling developed market consumer demands at same time. This paper describes a system that
provides lenders with a quickly deployable approach that integrates common banking practices,
procedures and standards, allowing them acceleration, consistency and accessibility to market.

Contents
ABSTRACT....................................................................................................................................2
1. Introduction..................................................................................................................................4
1.1 Background of the study........................................................................................................4
1.2 Significance of the study.......................................................................................................4
1.3 Research Question.................................................................................................................5
2. Literature Review........................................................................................................................7
Research Methodology..................................................................................................................12
4. Data Analyses............................................................................................................................14
4.1 Future research directions....................................................................................................17
5. Conclusion.................................................................................................................................19
6. Recommendations......................................................................................................................19
REFERENCES..............................................................................................................................23

1. Introduction
1.1 Background of the study
A technological revolution is taking position in the financial sector, with only a number
of non-bank entrepreneurs providing financial software services and products mostly to the
customer face as well as the back office. This transition involves developing capitalist
economies, which provides an easily updated alternative to conventional banks in several
countries that have left vast communities under banked. This report examines the challenges and
opportunities that advances in financial technologies bring to banks in such countries like UK.
The global revolution from shopping and broadcasting to travel and business-to - business
trading has now engulfed the financial sector. This was expected, since omnipresent processing
capacity, omnipresent networking, massive data storage and sophisticated analysis techniques
can be extended conveniently and reliably to financial products. After all, capital was already
made, used, deposited, sorted, and distributed electronically widely (though perhaps not
entirely). Stabilization in the finance market is more likely to be accomplished in an increasingly
interconnected world environment where international risk management requirements are
followed and economics works competitively, efficiently and transparently, subject to clear
concepts and practices that produce relevant knowledge and sufficient rewards. Immediacy with
customization for brand goods is becoming the standard in developing nations. Consumers have
soon grown comfortable with making transactions anywhere they could be with a tap of their
finger, providing tailor-made reviews, selecting tailored items and loving sending virtually every
item straight through their front step. Companies which fail to adapt such technical advances will
collapse drastically rapidly, and most have indeed doing so, like record shops, Borders
Textbooks, Blockbuster Video etc. The modern demands of customers extend to financial
services too.
1.2 Significance of the study
Technology has since changed business-to customer relationships, allowing the
restructuring of process, programmers, marketing, fulfillment and responsible for leading
through dispersed supply chains, creative design, companies outsource development, and
contractual material handling and procurement. These redesigns are managed by online markets

and suppliers, but are supported by back-end service operations including data collection both
which drive different levels of risk, faster delivery and more effective customer service. In the
financial services sector the same kinds of innovative technological developments and
reconstructed supply chain are already emerging. As banking services or FinTech inventors
penetrate their industries, this presents distinct obstacles for existing players such as banks,
investment firms, microfinance banks as well as insurance agencies. Incumbents, too, will
benefit from these innovations, allowing them to expand financing facilities, launch innovative
product and services and much more effectively satisfy consumers deploying new innovations
in-house or in collaboration with international innovators.
1.3 Research Question
 Does demand for innovation banking services and increase customer expectation is a big
challenge for banks in developing economy?
 What are the main points due to government-owned banks are more powerful in
emerging market?
 What are the impacts of increased deviation between central bank policies in developed
market?
 Does Failures in the design of macroeconomic policy instruments lead to major problems
for financial companies in new economy?
 Do inflation, liberalization and instability reduces the performance of banks in current
situation?
Research objective
The main objective of particular research is to evaluate the different challenges and problems
faced by financial banks or any other institute within emerging market.
 To determine the demand for innovation banking services and increase customer
expectation is a big challenge for banks in developing economy.
 To figure out the main points due to government-owned banks are more powerful in
emerging market.
 To analyse the impacts of increased deviation between central bank policies in developed
market.
 To determine the Failures in the design of macroeconomic policy instruments lead to
major problems for financial companies in new economy.

 To point out the main point if inflation, liberalization and instability reduces the
performance of banks in current situation?