FinTech Impact on Australian Banks: Disruption vs. New Ecosystem

This report investigates the emergence of FinTech in Australia and its impact on traditional banks, exploring whether it represents a disruptive force or a catalyst for a new financial ecosystem. The study examines how Australian banks are responding to FinTech, considering factors such as the adoption of new technologies, partnerships with FinTech startups, and the development of digital infrastructure. The report addresses key research questions related to the nature of FinTech, its ethical implications, and its future in the Australian financial landscape. It also discusses the limitations and delimitations of the research, ethical considerations, and the significance of the findings. The analysis incorporates a literature review and discusses qualitative and quantitative research methods used to gather and analyze relevant data on FinTech in the Australian banking sector.

Is FinTech a Disruption or a New
Ecosystem? An Exploratory Investigation
of Banks’ Response to FinTech in
Australia
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Contents
Executive Summary:.............................................................................................................................3
Introduction:..........................................................................................................................................4
Report section 1- Research Questions...............................................................................................5
Report Section 2- Conceptual Framework........................................................................................7
Report Section 3- literature.............................................................................................................10
Report Section 4- Methods..............................................................................................................12
Report Section 5- Significance........................................................................................................14
Report Section 6- Limitations and Delimitations............................................................................15
Report Section 7- Ethical issues......................................................................................................16
References:..........................................................................................................................................17
Appendix:...........................................................................................................................................19
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Executive Summary:
Financial technology or known as FinTech incorporates the designs and the delivery of the
financial products that could be impacted through the utilisation of technology, this adoption
of technology could crucially influence the processes of the financial institutions, customers,
regulators and the other merchants that are spread all over the globe Along these lines,
examining the FinTech activities of occupant establishments gives imperative bits of
knowledge into the nature and state without bounds money related eco-frameworks. Second,
developing financial technology writing has secured angles, for example, the advancement of
the singularity. Existing exploration on FinTech has given information to comprehend people
in general observation and primary performers.
The chief aims and objectives of this research are to develop understandings regarding the
emergence of the financial technology companies in Australia and about the policies and
ethical frameworks of the new eco-system. Useful perspectives that have been promoting the
client exchanging between the principles performers and others are leading. The study has
been set out to address the diverse questions that the traditional ways for the financial
institutions could respond on the FinTech. Many of the individuals say that the upcoming
start-ups such as of the Block chain pose a threat for the various challenges for the traditional
and various institutions such as of banks. The report will be discussing all the ethics and
disruption of new eco-system on the exploratory investigations of the banks that have been
responding in Australia.
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Introduction:
The project is based on the concept of financial technology as a disruption or the new eco-
system. The FinTech idea and its measurements and exercises of new companies or ventures
that inside the following couple of years, there will be an expansion in customary start-up
organizations, reception of advances ordinarily connected with new companies by
conventional establishments, and an increment in officeholders' interest in financial
technology new businesses in Australia. The report will be an exploratory investigation of
the banks which would be in response to financial technology in Australia. Writing on
officeholders' reaction to financial technology is as yet raising, with analysts showing the
confirmation of banks growing new computerized foundation or receiving co-agent
methodologies, for example, association.
While there are developing Financial technology examine from International standards and
business-related works, the setting of FinTech keeps on unfurling as exercises inside the
biological system displays energy. Inescapable digital technologies have been testing the
basics of the exceptionally controlled monetary part, prompting the development of non-
conventional instalment frameworks such as shared cash trades and expanded turbulence in
money markets. The project will be answering the report questions that are to be developed
and the clear purpose of research would be provided. General questions regarding financial
technology would be provided and explained in the assignment below.
There are wide varieties of approaches that are described in the theoretical framework. The
ethical issues such as privacy, intervention, anonymity, confidentiality of information, use of
results and so on in adopting the financial technology will be provided in the assignment.
The limitations and delimitations that are incorporated in the research which had affected the
research will also be discussed along with the significance of the research. The methods and
approaches such as qualitative and quantitative approach will be discussed in the project. The
collection instruments that were utilised to complete the research will be discussed and also
the analysis of relevant data to the financial technologies in the Australian banks will be
discussed in the assignment. A literature review will also be done in the assignment to
provide relevant learning about the new-eco system in the investigation of banks in Australia.
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Report section 1- Research Questions
The upcoming FinTech studies have been incorporating the evolution of the diverse
phenomenon’s that have been recognising the activities of the banks and the opportunities for
exploring the enhancement of the various start-ups and other institutions utilising the
financial technologies in their work procedure. In the task, several questions will be proposed
which will be showing the answers to what will be discussed in the further sections of the
task. In Australia, the largest sector which has been contributing to their economy is the
financial sector. The government of Australia has been steadily supporting its financial sector
for the purpose of enhancing the competition. The long and the existing local and the other
multinational banks and the diverse developing firms that are utilising the financial
technologies for their work purposes are keeping an eye on the ethics of new eco-system
(Oshodin, et. al, 2017).
The new entries in the market of Australia that are in the financial industry that are providing
the alternatives for other technologies such as the crowd funding and the digital currencies
have been showing the indications with the banks have been started to get up in the market.
At the starting the contributions to the other information systems research that has been
getting up in the other topics, the study will be contributing to the researchers of the financial
technologies. The conceptual underpins which have been unfolding the various concepts of
sensing as well as responding. For sensing and involving the abilities that could gain efficient
knowledge for quickly relating to the various changes which could impact the firms. The
firms that may be having an ability for sensing the involvement of various banks and firms
for generating the effectual knowledge that is related to the various changes. There are
various elements that have been responding and sensing that are required in the primarily
concerned for the quick processes that firms of the utilities for sensing then respond. A
similar response to the initiatives for sensing the financial technologies that banks are
developing with their diverse steps for ensuring the proper knowledge can be obtained by the
FinTech for first in their abilities (Murray, 2017). Some of the questions that could answer
the questions that have been described in the research questions are,
Is FinTech disruption or a new Eco-system?
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Is FinTech responding to the initiatives?
What are the limitations of the research?
What are the purposes of FinTech?
What is future of financial technologies in Australia?
What are the vital ethical issues that are to be answered about the FinTech?
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Report Section 2- Conceptual Framework
FinTech which has been also known as financial technologies can be hailed from all the sides
and the technologies of the financial services. With the starting of digitization that has been
generating higher assistance of the companies could be developed and evolved for generating
the financial services to the customers from various platforms that come up with the
utilization of the software’s and the frameworks of the various solutions that can be allowed
for dealing with the money services at online platforms. There are three major entities that
are considered in the FinTech concept such as hi-tech firms, traditional firms and the
government entities. There are mainly two kinds of companies in the Hi-tech firms such as
the big technology companies that are gaining the active financial applications and the small
companies that are introducing the disrupting technologies which enable the clients for
handling the money at online platforms. The second system in which financial technology
eco-systems are working is of traditional firms that are incorporating the financial institutions
and other global as well as local banks (Harris, et. al, 2016).
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Hi-tech
firms
Leading services
payment services
Traditional
Firms
investment
services
Government
Equity funding
services
Financial research
FinTech
Ecosystem

These traditional firms that are partners with the hi-tech firms that are having in the
innovation have been assisting in strengthening in the market. The third entity that has been
incorporating the financial technology ecosystems is of a regulatory body which is centrally
known as the government firms, this has been enforcing the settings of regulations and
policies. The services of this institution include the payments, transactions, management of
wealth, lending, Blockchain, retail banking, treasury functions and the investment banking.
The financial technology services available in lending are offered by the chief that has been
including the online solutions for the lenders and the borrowers for working together (Millar,
2016).
Organizations are putting forth online instalment arrangements where purchasers can pay on
the web and the settlement of cash can occur without heading off to a bank. Barely any new
businesses are giving arrangements that can offer proposals to individuals on their money-
related ventures by contrasting different approaches inside the market. Financial technology
banks and firms are utilizing various stages to approach investment of the financing
administrations. These administrations target new companies and beginning time
organizations. This administration has made a noteworthy effect on the assembling business.
Arrangements in light of production network financing encourage purchasers and providers
to deal with the entire retail process from acquiring to paying (Nicholls, et. al, 2015).
By examination, a few organizations have improved new arrangements and devices that can
break down the monetary state of a firm or an economy. Security is a standout amongst the
most imperative viewpoints requiring testing in a FinTech application. Money related
information utilized by applications contains delicate data that can be abused by
programmers and noxious programming. In that capacity, security testing, including entrance
and weakness checks, is essential. Financial technology applications are utilized to grow both
the compass and simplicity of business. Applications must be easy to understand with the
goal that any client is capable work it. Thusly, this requires convenience testing with the
assistance of genuine clients. Information security, information trustworthiness, and
information approval are imperative for any framework, however, is particularly fundamental
for money related frameworks. Amid information relocation and information trades over
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correspondence channels, appropriate strategies and principles with respect to tables and
records must be taken after (Pradhan, et. al, 2015).
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Report Section 3- literature.
FinTech is a marvel that is developing quickly so it winds up required delegating a training
writing for response comprehension, portrayals and exercises. According to Micu & Micu
(2016), it has been analyzed that in the FinTech activities for detecting it guarantees finish
social event of information with five possible areas that are profound commitment with
various clients which involves wants to recognize the client prerequisites giving various
monetary administrations, checking of innovation that contains a few activities with a few
advancements including its functionalities.
In the lights of Blissett (2016), it has been examined that FinTech thoughts are
crowdsourcing as banks are giving fast and extensive variety of numerous creative thoughts,
channels which have FinTech learning inbound in which banks take an interest effectively to
assemble learning from any outside source and observing FinTech players effectively that
showed endeavors of banks for a few exercises for players inside biological community of
FinTech. FinTech based financial services whose having an excellent premise which could
be integrated into the whole ecosystem of finance. Many of these services focused on their
own platforms as well as collecting their own investor.
As per the viewpoint of Ahvenainen (2017), it has been evaluated that FinTech world is
existing, complex and increasingly crowded. There is a wide spectrum of innovation along
with the maturity in the FinTech market that can be baffled for the insurance as well as
banking companies. New digital services related to finance assist in creating the better
financial products than the old models. The services can gather the more data, analyze and
monitor the information in a diversified way as well as supervise the real-time information.
This help in making better financial decision making, better pricing as well as effective
secondary markets (Ahvenainen, 2017).
According to Micu & Micu (2016), it has been reviewed that real value along with the
winners of FinTech rises from the models as well as solution so that they get the finance
ecosystems to make the functions better. FinTech with the digital services, more data along
with the automated proposed disrupt the finance sector. Those who want to lead disruption
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then they have to focus to build digital veins. It also requires the both new along with the old
financial companies so that they can understand and analyze their own positions as well as
core components in the ecosystem. If the massive size of existing finance ecosystem
machinery, then it is essential to listen to new services.
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Report Section 4- Methods
The qualitative aspects are utilised and developed where historical information is already
provided and these methods are mainly adopted for various judgements of the experts for
generating and developing the forecasts. Individuals are generally central to the qualitative
analysis for the investors on the educational and the professional backgrounds. The
qualitative techniques for the financial technologies are such as the executive opinions where
the opinion was generated from the opinions of experts in the personal and the various
departments that require financial technologies such as the sales, purchasing, production and
operations that gather the future predictions. The reference class forecasts on the diverse
methods for predicting the various outcomes of the diverse actions based on the platforms
which are as per the similar scenarios. The Delphi technique utilised the series of the
questionnaires could be prepared and answered by the various experts in the FinTech
departments of Australian banks. The Salesforce polling is another technique that had been
utilised in the research for contacting the consumers and providing them with the close
contact with the consumers (Simpson and Clifton, 2017).
The quantitative technique for financial technologies utilise various methods and this
technique basically utilises the number of the hypothesis by utilising the various measured
amounts of the ultimately described events and the figures. The quantitative techniques are
such as Cause-effect method and the time series response. For the task, both the approaches
were utilised in a mixed way. There are basically four primary sampling strategies such as
random sampling, stratified random sampling, systematic sampling and the rational sub-
grouping. The sampling strategy utilised for the task was of random sampling techniques
where the sample size was of about 300 individuals that have been working as the experts in
the various banks and the financial institutions utilising the FinTech. There are various
instruments for collecting the data such as surveys, interviews, questionnaires and protocols
which can assist in gathering the relevant data. The method and instruments utilised here
were of the interview where interviews were taken from the random individuals who have
been working as an expert and have great knowledge of the financial technological terms.
The steps that were followed for the collection started with the identification of
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