Analysis of E-Banking in Australia: Assessment 2 Report

This report provides a comprehensive analysis of the e-banking industry in Australia, examining its significant growth in recent years, driven by government initiatives to promote cashless transactions and increased user adoption. It explores the aims and objectives, which include analyzing the reasons behind the impressive growth of online banking, evaluating the scope and future of Australian online banking, and determining its impact on the Australian economy. The report delves into the reasons for using internet banking, including ease of use, accessibility, and security, as well as the e-banking services offered through bank websites. It addresses security concerns and potential risks associated with online transactions, along with the drivers of change and future scopes. The research methodology includes both qualitative and quantitative approaches, utilizing primary and secondary data collection methods. The report concludes with a discussion of the findings, offering recommendations for the continued growth and development of the e-banking sector in Australia, considering its impact on the economy and the evolving landscape of financial technology.

Running Head: ASSESSMENT 2 1
Assessment 2
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Assessment 2 2
Table of Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Aims and Objectives................................................................................................................4
Research Questions..................................................................................................................5
Literature Review............................................................................................................................5
Reasons for Using Internet Banking........................................................................................6
E-Banking Services through Bank Websites...........................................................................7
Security and Possible Risks for Online Transaction................................................................8
Drivers of Change and Future Scopes......................................................................................9
Research Plan and Methodology.....................................................................................................9
Research Approach................................................................................................................10
Sampling Technique and Approaches....................................................................................10
Data Analysis and Findings...........................................................................................................11
Discussion......................................................................................................................................12
Conclusion and Recommendations................................................................................................13
References......................................................................................................................................15
Appendix: Interview Questions.....................................................................................................17

Assessment 2 3
Executive Summary
The federal government of Australia has taken a strong initiative to go cashless in the
money transaction process. In the last few years, the business growth and the number of users of
online banking companies have increased notably. The government motivation is a big success
factor for the organizations within the Australian banking industry to offer the differentiated and
quality online banking services. The government is trying to go cashless within the year 2025.
There are several challenges of online banking activities, such as hacking of personal
information, account information and data of the users which can create several ethical
challenges. Integration of safer technological devices along with advanced information
communication technological devices will assist in securing the e-banking services.

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Introduction
Online banking industry in Australia is experiencing significant growth rate in the recent
years. Especially, during the last few years, the business growth and the number of users of
online banking companies have increased notably. Most importantly, the federal government of
Australia has taken a strong initiative to go cashless in the money transaction process. Therefore,
the federal government of Australia is trying to create a strong awareness among the common
public regarding the use of online banking applications. The government is trying to go cashless
within the year 2025. Therefore, the government is motivating the public and private banks
across Australia to offer the online banking services to the common Australians. After this
initiative, it has been identified that the percentage of the users of the online banking services has
increased by 58 percent recently. This can be regarded as an impressive number. Prominent
security, easy accessibility and user friendly approaches are the major reasons behind the
selection of the online banking services by the users. This is also essential to state that the
organizations within the Australian banking industry has significantly applied unique marketing,
promotion and other differentiated strategies to make the online banking operation process
successful.
Aims and Objectives
The major aim of this research work is to analyze and evaluate the growth of the e-
banking industry in Australia. Moreover, the research paper will also analyze the impact of the
growth of the Australian E-banking industry on the Australian economy. This particular research
work will try to meet the developed objectives as follows:

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 To analyze and evaluate the major reasons behind the impressive growth of the online
banking industry.
 To analyze and evaluate the scope and future of the Australian online baking.
 To determine the impact of the performance of the online banking on the economic
condition of Australia.
Research Questions
The researcher will address the developed research questions as follows:
 What are the major reasons behind the impressive growth of the online banking industry?
 What is the scope and future of the Australian online baking?
 What is the impact of the performance of the online banking on the economic condition
of Australia?
Literature Review
It is already introduced that the Federal government of Australia is taking some notable
initiatives to go cashless by the year 2025. This is acceptable that government of Australia is
strongly focusing on the effective awareness programs in order to motivate the people to
acknowledge and use the online banking option (Lubua, 2014). The organizations within the
Australian banking industry are highly motivated by the government to offer online and e-
banking services. Most importantly, this is also acceptable that the majority of the developing
countries are also focusing on the online banking and cashless services to attain strong economic

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growth. In addition, this is also acceptable that the Australian federal government is being relied
on the cashless money transaction services basis on the growing demand (Lunenberg, 2011).
Reasons for Using Internet Banking
There are several reasons behind the growth in the percentage of the users of the online
banking services. First of all, the simplified and easy banking services introduced by the e-
banking can be regarded as the major reason behind the growth in the percentage of the users. An
users can easily transfer money to the bank account of others through the consideration of the e-
banking services quite comfortably (Mishra et al., 2013). It is an effortless and time effective
activity. In addition, the common individuals also can buy products through the online
transaction and e-banking. In this process, the users do not require to use the debit or credit
cards.
In the business transaction process, e-banking platforms also have become an important
medium. This is acceptable that the online transaction platforms are significantly used by the
organizations in the B2B transaction process (Nair, 2014). In addition, this is also acceptable that
the human resource managers of several organizations used to pay their salaries through the
online transaction process in which the e-banking activities are being utilized (O’leary et al.,
2011).
Carrying liquid cash also has become a major problem for the common individuals as
there is threat for the theft of money. Therefore, the consideration of the online money
transaction process can be considered as a safe payment option. Apart from it, the users can send
and receive funds at any point of time at any place (Savery, 2015). This is also can be considered
as an important reason behind the use of the online banking services.

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It is also essential to state that the transfer of fund in the foreign markets has become
easier and cost effective as well as time effective through the consideration of the online banking
services. This is acceptable that the consideration of these particular services can improve the
efficiency in the fund transfer activities in the foreign countries (Stahl et al., 2016).
In the money transfer process, the higher efficiency in the cash flow is highly important.
The time and cost efficiency in the online banking and e-banking money transfer activities can
enhance speed and efficiency in the cash flow process, which is important for any kind of
banking service (Singh and Hardaker, 2014). However, these are considered to be the major
reasons behind the growth in the number of the users of online banking activities.
E-Banking Services through Bank Websites
It is acceptable that all the organizations within the Australian banking industry have
focused on the offering of two important types of internet banking services. First of all, it can be
stated that the organizational management of a bank used to offer the internet banking services
through the physical bank system (Schmidt, 2015). On the other hand, this is also important to
state that the banking organizations in Australia used to offer the e-banking services (Trkman,
2010). The e-banking services can be offered by the management of the organizations without
any presence of the physical evidence of the banks. Most importantly, the websites of the banks
used to offer efficient and customer friendly online banking services. This online banking service
is comprised of four important basic factors, such as quick accessibility, speed, facilities and
provident content. Hence, it is clear enough to accept that the organization within the Australian
banking industry needs to adopt some important ways in the website development processes
(Welch, 2012). The Australian banks are considering two important factors in the website
development process. Majority of the Australian banks are focused on the development of the

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transactional website and information based website. The consideration of the transactional
website used to focus on the transaction of money. On the other hand, this is also essential to
state that the users and the target customers can get to know about the information about the e-
banking services through the informational website (West et al., 2010).
Security and Possible Risks for Online Transaction
Apart from several advantages and benefits, this is acceptable that the online banking
services can have different types of disadvantages, which can create ethical challenges. It has
become an usual concern that the transactional websites of different banks are getting affected
and controlled by different hackers across the globe (Bock, 2015). Hence, privacy and security
related concerns can be considered as the major concerns for the banks (Doumps & Zopounidis,
2010).
Hacking of personal information, account information and data of the users can create
several ethical challenges. First of all, the organizations can lose support from the important
organizational stakeholders (Williams, 2012). Secondly, the organizations can face different
types of challenges, such as loss of customers and poor business growth can affect the
sustainability (Bossidy, 2008).
In addition, this is also essential to accept that the contemporary firms can face different
types of challenges regarding the failure of the technical or technological applications in the
business operation process (Cheng et al., 2014). This is acceptable that the consideration of the
lack of regularity in the reviewing and evaluating the technological applications can affect the
efficiency. Overall, these are the major challenges and the risk factors (Hajdini, 2010).

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Drivers of Change and Future Scopes
This is acceptable that the online banking services have become more common activity
and affordable option for the common Australians. This is also acceptable that the Government
of Australia is motivating the organizations within the Australian banking industry to focus on
the digital and cashless transaction approaches. It is an important aspect to state that the majority
of the organizations within the Australian banking industry are trying to offer differentiated and
quality online banking services to the target customers basis on the ongoing demand (Guoli et
al., 2017). In terms if the demand can be considered as the major driver for the change. In
addition, efficiency and advancement in the online payment services, online networks, internet
services and online devices can be considered as the major drivers of change (Ng and Rezaee,
2015).
In terms of the future prospect, this is acceptable that the organization within the
Australian banking industry needs to go for the better business growth through the continuation
with the differentiated internet and e-banking activities (Klettner et al., 2014). Most importantly,
the government is focusing on becoming cashless economy by the year 2025. Hence, the future
prospect of the online e-banking services and activities are quite high (Mats Anderson, 2016).
Research Plan and Methodology
Research plan and methodology is considered to be the most vital part in a research work.
It is acceptable that the researchers can adopt either the qualitative research methodology or the
quantitative research methodology. The researchers used to select a particular methodological
approach basis on the needs and characteristics of a research work. Qualitative research method
focuses on the behavior, feelings, perception, thought process and emotion of the respondents.

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Quantitative research methodology depends upon the analysis of numerical figures through the
application of statistical formulae and units. However, the researcher will select the qualitative
research methodology in this research work basis on the exploratory nature of the research work.
Research Approach
In terms of research approach, the researcher will provide significant importance to the
data collection process. There is a possibility of the application of either secondary data
collection process or the primary data collection process. Secondary data collection process
generally involves the collection of enormous number of required information and data from the
valuable data sources. Primary data collection process generally involves in the collection of live
and fresh data through field work. The researcher will adopt both the primary and secondary data
collection process in this research work focusing on the advantages. Academic text books and
journals will be considered as the secondary data collection sources. On the other hand, the open
ended semi-structure interview process will be considered for the primary data collection
process.
Sampling Technique and Approaches
In this research work, the researcher has adopted the simple random sampling approach.
Most importantly, the researcher has approached to 50 bank employees regarding the interview
questionnaire process. Among the 50 individuals, 40 individuals have stated that they are agreed
to give response to the questionnaire. Hence, the sample size for this research work is 40.

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Data Analysis and Findings
The researcher has asked five different questions based on the developed research
objective and research question.
In terms of first interview question, it has been identified from the responses that the 27
respondents out of the 40 respondents have replied that time efficiency is the major reason
behind the growth of the online banking services across Australia. On the other hand, rests of the
13 respondents have replied that user friendly characteristics and features have motivated the
customers of the bank to use the online banking services.
In terms of the second interview question, it has been identified that 32 respondents have
stated that the motivation by government is the major reason behind the growth of the e-banking
services. On the other hand, 8 respondents have stated that the growing demand and popularity
can be regarded as the major reason behind the growth of the e-banking service.
In terms of the third question, it has been identified that the 35 individuals have accepted
that the federal government of Australia will be successful in making Australia a cashless
economy by the year 2025. However, rest of the five respondents has stated that it is difficult for
the federal government of Australia to make the country 100 percent cashless economy.
In terms of the fourth question, it has been identified that 23 respondents out of the 40
respondents have stated that the effective marketing and promotional activities are required for
the banking organizations in Australia to promote the online banking services. It is also
acceptable that the rest of the 17 individuals have stated that the there are other important
programs and activities, which can improve the growth of the online banking activities.

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In terms of the last question, this can be stated that 36 individuals have stated that the
growth of the online banking services will have a strong impact on the economic growth of the
country. On the other hand, 4 individuals have stated that the growth in the online banking
management approaches will not have a strong impact on the economic condition of Australia.
Discussion
It is already clear from the analysis that the majority of the respondents have shown their
support for the effectiveness of the online banking services. This is acceptable that time
efficiency approach is the major reason behind the growing acceptance of the online banking
services by the customers. Similarly, the majority of the respondents have offered their responses
by supporting the motivation and brand awareness approaches by government. In addition, this is
also acceptable that majority of the respondents generally think that Australia has the capability
to become a developed cashless economy by the year 2025. According to the respondents, the
company management needs to consider strong awareness programs as it will ensure positive
growth and brand image of the banks providing the online services.
In the last few years the business growth and number of users of the online banking
companies have increased notably. Most importantly, the federal government of Australia has
taken a strong initiative to go cashless in the money transaction process. Therefore, the federal
government of Australia is trying to create a strong awareness among the common public
regarding the use of online banking applications. The government is trying to go cashless within
the year 2025. Therefore, it is clear that the government motivation is a big success factor for the
organizations within the Australian banking industry to offer the differentiated and quality online
banking services.