ICT710 ICT Professional Practice and Ethics

DIGITAL DISRUPTION IN BANKING INDUSTRY: ANZ,
AUSTRALIA
Name of the Student:- Syed Khan Junaid
Name of the University:- University of Sunshine
Coast.
Student Id:- 1107242.
Course Name:-ICT Professional Practise and Ethics.
COURSE CODE:- ICT710.
1 | P a g e

Executive summary
The idea behind this report was to identify the involvement of digital disruption at ANZ Bank
Australia. With the help of WCA model, it can be found that ANZ bank need to make
adequate changes to deal with digital disruption within the bank and it could challenging for
the management as well. Suitable technique to deal with the digital disruption is Artificial
intelligence technique. Recommendation which have been through this analysis are creating
innovative environment, identifying knowledge gap and appropriate investment plans and
many more.
2 | P a g e

List of Abbreviation
ANZ Bank-Australia and New Zealand Banking
WCA Model- Work Centred Analysis
AI- Artificial Intelligence
3 | P a g e

Table of Contents
1 Introduction.............................................................................................................................5
2 Problem identifications...........................................................................................................5
3 Recommendation for digital disruption..................................................................................9
4 Conclusions...........................................................................................................................10
5 Implementation plans............................................................................................................10
6 References.............................................................................................................................12
Appendices...............................................................................................................................13
4 | P a g e

1 Introduction
Disruption is although a negative word but digital disruption is the ability of doing things
differently and creating a new market with existing product. According to McQuivey (2013)
digital disruption is the change which occurs when new technology and business model
impact the existing service and product. Digital disruption can create a temporary impact on
the existing business however that leads to sustainable development. In the age of
technological advancement where industries are striving to gain sustainable competitive
advantages, digital disruption can be a game changer. Truly it is a game changer as
companies which are not ready with their strategic plans can be under pressure from digital
disruption. Digital disruption is evident in almost every industry type however banking sector
is leading this trend. ANZ Australia which is the third largest bank by market capitalisation
in Australia has been selected for the study. This report helps with the identification of the
digital disruption in this bank and recommend suitable plan which can help to overcome
digital disruption in the best way. All the recommendations which have been given in this
reports aims to guide ANZ Bank through the right path to deal with digital disruption and
using it is the most appropriate manner. This further enables a customer centric approach for
the Bank in near future.
2 Problem identifications
There are different challenges which ANZ bank is facing due to technological disruption
within the banking system. Banking system of ANZ is at the midst of the disruption era. The
global banking system is changing due to technological disruption and it is often challenging
for ANZ to keep up with those changes (Lindgren, 2013). The first thing which needs to be
considered is how ANZ bank can deal with the digital disruption however most of the time
management fails to do that. As a result the banking system of ANZ is struggling to cope
with the digital disruption. The biggest technological changes what majority of global bank is
looking "Engagement of Advisor tool". This can help banking system with advice process.
The functionality of this Adviser tool is to help customers by answering their financial query.
In the initial stage this tool will observe questions which can be raised by either customer or
financial adviser and then solve their query. However the banking system of ANZ is still in a
5 | P a g e

situation where they could not find the right strategy to implement this service. This is
hindering their system from growth and gradually the bank is losing its competitiveness due
to technological disruption. In this regards, the existing Work Centred Analysis along with
the proposed Work Centred analysis for ANZ bank Australia are given below
The existing WCA framework
6 | P a g e
Customers
People of Australia and New Zealand
Products
Banking products
Financial services
Insurances, Loans
Business process
Making banking deposit
Investments help
Giving loan
Guide customers for investment
Fund transfer
Participants
Banking Customers
Information
Financial and account
information
Technology
Mobile banking
Net banking

Need of Artificial intelligence
Artificial Intelligence has the biggest contribution in modern technological advancement and
has emerging need in organisational development. Artificial Intelligence is needed to improve
the current customer service status of ANZ Bank. Some of the benefits which can be gained
by implementing Artificial intelligence in the system are
 System can perform their task automatically with the help of Artificial Intelligence
 Bank will be able to offer fast service to the customer (Castelli, Manzoni & Popovič,
2016)
 Better banking system can be developed with by providing online banking facility
 Customer data can be protected and retrieved whenever it is needed
 Automated machine will allow customer with self help banking facility
 Customers data can be protected with the help of Artificial intelligence
7 | P a g e

Proposed WCA framework
8 | P a g e
Customers
Customer with better investment plan
Financial advisors
Products
Involvement of better financial planning tool
Developing tools for better customer service
Business Process
Need of banking customer need to be identified
Development of service and tool should be done accordingly
Technology
Artificial intelligence
Information
Evolution of best
technology for delivering
better banking service
Participants
Young investors, who are
good with digital
technology and are
reluctant to visit bank
branch

Goals and challenges for ANZ Bank Australia
The goal of ANZ bank is to provide the world class baking service to customer without
wasting their time. ANZ Bank is planning to come up with a complete digital banking
solution for customers. The challenges which ANZ Bank can face with Artificial Intelligence
are proper implementation and application of artificial Intelligence by internal employees for
introducing the best banking service within Australia.
3 Recommendation for digital disruption
There are multiple processes which can be followed by ANZ bank to move effectively with
digital disruption. These recommendations will not only bring positive changes within the
banking system but also reduce chances of any negative impact due to sudden digital
disruptions. Some of the recommendations are
Configuration of Strategy for AI: The modern age banking system needs to ensure that they
deliver the right service by measuring the right output (Schiller & Kenworthy, 2017). First
and foremost, ANZ Bank needs to prepare a plan which covers all the aspects which need
improvement. For instance, ANZ Bank needs to come up with Automated Advisor Tool
which is also known as chatbot across the globe. Therefore, Artificial Intelligence should be
implemented to develop the right Advisor tool for both customers and financial advisors.
Human resources planning: ANZ Bank needs to consider the impact of digital disruption on
their employees. It is natural, that employees will consume time to get accustomed with the
new technology. Thus it is extremely important for the bank to perform a test which can help
the HR management to understand the skill and competencies of their existing employees
(Cascio, 2018). With this scanning process HR managers of ANZ Bank will be able to
identify the existing capabilities of their resources and those capable resources can be utilised
for implementation of Artificial Intelligence. Therefore, it is highly recommended for ANZ
bank to identify the gap between the current knowledge with the required talent for the
implementation. This will ensure that ANZ Bank will be able to take the right measure to
reduce the knowledge gap.
Integration AI and Innovation: Beside identification of knowledge gap, it is essential for the
company to promote an innovative work culture so that the Bank can deal with any digital
disruption and use it for innovation (Meier, 2016). It is highly essential for the Bank to
9 | P a g e

understand their point of focus to ensure that most profitable part of the business is benefitted
through digital disruption. Keeping a clear vision is essential to utilised digital disruption in a
positive manner.
Investment: This recommendation is made regarding investment for the new technology. It is
the responsibility of the managers to ensure that the right amount of investment is done at the
right time (Gotze, Northcott & Schuster, 2016). All expenses should be taken under
consideration before planning to invest for the Artificial intelligence. It is essential to ensure
that the operational cost or the investment cost for this new technology is not more than the
periodical profit of the bank. Management need to consider the fact that the investment is not
just done to develop the new technology but to improve quality of service.
Customer centric approach: Finally it is recommended for the management to change their
tradition banking process with the help of technological advancement and put customer at the
centre of process. Making the changes in the business process is not enough until it fits the
need of customers (Lievesley et al., 2017).
4 Conclusions
The original purpose of this study was to find the problem area in ANZ Bank and how Digital
Disruption can affect the whole banking process. ANZ Bank is capable of providing various
financial services to customers. However with the help of the WCA model it can be found
that a change is required in the existing business process to for the effective involvement of
digital disruption. These business changes are identification of need and implementation of
the Artificial Intelligence so that patience can be provided with Automated Advising tool. In
this regard various recommendations have been made for ANZ bank. These
recommendations include bringing adequate innovation at the Bank, identification of
knowledge gap and right investment for the new technology.
5 Implementation plans
Factor Concerned People Duration
There is a need of training for the existing Training manager and 2 moths
10 | P a g e

employees so that digital disruption can be
dealt in the right manner.
HRMD
Bank need to perform a research on the type
of questions customer and financial
advisors ask from bank. These information
need to be included in the system to
minimize the limitation of the new Advisor
Tool
. Technical manager,
Personal banker
3 months
Predefined set of skill, knowledge and
intelligence is required for the
implementation of the new technology
IT managers are responsible
for this
3 to 4 months
11 | P a g e

6 References
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Castelli, M., Manzoni, L., & Popovič, A. (2016). An artificial intelligence system to predict
quality of service in banking organizations. Computational intelligence and
neuroscience, 2016.
Gilbert, R. J. (2015). E-books: A tale of digital disruption. Journal of Economic
Perspectives, 29(3), 165-84.
Gotze, U., Northcott, D., & Schuster, P. (2016). INVESTMENT APPRAISAL. SPRINGER-
VERLAG BERLIN AN.
Lievesley, M., O'Leary, D., Whitehead, C., Hewitt, I., McPherson, N., & Annal, C. (2017).
How Industrial Design Supports a Customer‐Centric Innovation Approach in a
Technology‐Centric Business Environment. Design Management Journal, 12(1), 15-
27.
Lindgren, S. (2013). New noise: A cultural sociology of digital disruption. Peter Lang
Publishing Group.
McQuivey, J. (2013). Digital disruption: Unleashing the next wave of innovation.
Meier, D. (2016). Integration Of Ai And Or Techniques In Constraint Programming For
Combinatorial Optimization Problem. Integration, 1, 4.
Schiller, P. L., & Kenworthy, J. R. (2017). An introduction to sustainable transportation:
Policy, planning and implementation. Routledge.
12 | P a g e

Appendices
Figure 1: Work Centred Analysis Framework
(Source: Imison, et al., 2016)
Figure 1: WCA Model
(Source: Gilbert, 2015)
13 | P a g e