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Business Proposal of HSBC Bank

   

Added on  2020-06-04

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Business Proposal1

Table of ContentsINTRODUCTION...........................................................................................................................1Background of the study.........................................................................................................1Overview of organization.......................................................................................................2Rationale/Problem statement..................................................................................................2Conceptual framework...........................................................................................................3Research aims and objectives.................................................................................................3Research questions.................................................................................................................3Significance of the study........................................................................................................3RELEVANT LITERATURE...........................................................................................................41. Significance of digitalization in UK banking sector..........................................................42. Increasing prevalence of technological disruption in banking sector................................53. Impact of technological failure on online banking, market rputation and consumersatisfaction..............................................................................................................................7RESEARCH METHODOLOGY...................................................................................................10Research philosophy.............................................................................................................10Research approach................................................................................................................10Research design....................................................................................................................10Research method..................................................................................................................10Data collections....................................................................................................................10Sampling method..................................................................................................................11Sample size...........................................................................................................................11Data analysis.........................................................................................................................11Reliability & Validity...........................................................................................................11Ethical issues........................................................................................................................12Limitation.............................................................................................................................12Project plan and timescale....................................................................................................12REFERENCES..............................................................................................................................131

Title: To investigate technological disruption issues and its impact on UK Banking sector: Acase study of HSBC Bank INTRODUCTIONBackground of the study UK banking sector is extremely devoted to hold others financial assets and savings andinvestment it in other growth opportunities so as to create more wealth. According to TheCityUKreport for 2016, financial sector is a main key driver of economy which accounted for 12% of thetotal economic output. In 2015/16, banking sector contributed worth 24.4 GBP billion to theeconomy. Despite a considerable contribution, industry is experiencing number of issues such asdigital transformation, regulatory change, liquidity issues, fierce competition and many others. Inthe current time, technology downtime is a major difficulty faced by UK banks. As per Reenan,(2017), on an average, banks lose more than 20 minutes productivity on each worker due tofaulty IT. Poor IT system and facilities have a considerable impact on the workforceproductivity. Bringing attention to such matter, the report mentioned that failure of IT couldresult in cost of 35GBP bn per year. In such regards, IT users employed in the factor experiencesproblems due to slow functioning of system, slow internet connectivity, outdated software, poorequipment and many others. However, in today’s digitalized age, consumers prefer onlinebanking because of lack of time availability due to busy life. (Source: The Biggest Challenges Facing Banks, 2017)1

In a survey, it is found that 58% (see above) service users prefer digitalization whereinthey can get their account details easily on net, provide advices them on wealth creation andothers (The Biggest Challenges Facing Banks, 2017). It is therefore, technological disruption canbe considered as a key concern faced by UK banking sector which resultant productivity crisisfor UK banks. It had a drastic impact on the workers productivity, consumer satisfaction,operational functionality and bank’s reputation (Locke, 2017). Recently, in G7 and G20, countryis ranked at 7th and 17th position on the basis of per employee productivity. More importantly,bank’s online banking operations suffer a lot due to technical errors and disruption which resultsin excessive consumer complaints. Thus, the thrust of the paper is to investigate the reasons oftechnological disruption issues and determines its impact on the HSBC bank’s performance. Overview of organization The present study is based on a case study; HSBC Holding Plc which is a UK basedmultinational banking & financial service providing company which is headquartered in London.It operates in both banking and financial service industry and listed on LSE under FTSE 100Index. It operates in four segments, Investment Banking, Commercial Banking, WealthManagement and Retail Banking and Global Private Banking. It is one of the largest bank of UKwhich operates globally with having 3900 offices across world. The aim of HSBC Holding Plc isto help people to fulfil their expectations and facilitate organization in fuelling growth. It isserving 38 million consumers through its worldwide network in 67 countries. Rationale/Problem statement In current times, digital revolution and innovation is driving rapid change in the financialsector. Now-a-days, banks are strongly committed towards digitalization which can be evidentwith net banking, mCommerce, mobile banking, mobile apps and others. Such offering providesconsumers with a great level of security, flexibility and control to manage their transactionseffectively. However, recently, as per Tallis (2017), HSBC’s latest IT glitch affected million ofbusiness and personal consumers who hold their bank account resultant in large number ofcustomer complaints. Although the issue is not new, because previously in 2015, HSBC sufferedtechnological breakdown issues, as a result, 275,000 payments had not made on time, still, noresearch study has been undertaken which explore such matter. Thus, increasing prevalence oftechnology downtime issues faced by HSBC Bank brought requirement to determine its reasonsand its possible impact on the bank performance. 2

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