Comprehensive Analysis: Australian Banking Industry Challenges

This research report provides a comprehensive analysis of the challenges faced by the Australian banking industry in the context of a dynamic global economy. The report begins with an introduction outlining the scope and objectives, followed by a literature review that examines existing research on the subject. The methodology section details the research approach, including both qualitative and quantitative methods, data collection techniques (primary and secondary sources), and sampling strategies. The report identifies key challenges such as low efficiency, lack of trust, the rise of online banking, technological advancements, and fluctuating foreign exchange rates. The research also explores the impact of these challenges and provides recommendations for addressing them. The time scale and Gantt chart provides a clear roadmap for the research activities. The conclusion summarizes the key findings and emphasizes the need for banks to adapt to the changing environment. References to supporting literature are also included.

Running Head: Banking Industry 1
Business Research

Banking Industry 2
Contents
Introduction......................................................................................................................................3
Project objective..............................................................................................................................3
Project scope....................................................................................................................................3
Literature review..............................................................................................................................3
Research question............................................................................................................................4
Research methodology.....................................................................................................................5
Limitations.......................................................................................................................................6
Time scale........................................................................................................................................6
Gantt chart.......................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Banking Industry 3
Introduction
This paper will tell about the banking industry of the Australia country that faces a number of
challenges as the global economy has experienced wide modifications and dynamics over the
years, with the conditions regarding economic that become more multidimensional and
diversified. The global business environment has become more competitive and complex for any
sorts of business and industries. The project objective and scope will be defined in an effective
way which helps to understand the entire concept of the research paper. The research
methodology will elaborate the research approaches, techniques, and strategy in which the way
of gathering the data for the research is described.
Project objective
The objective of this research is to analyze the exact nature of the challenges which are being
faced by the banking businesses in the country. The aim of this research is to provide suggestions
and recommendations, based on literary and empirical evidences regarding the ways in which the
challenges faced by the banking businesses in Australia
Project scope
The scope of the research is wide because the role of bank is vital in each country and the
banking industry of Australia is facing challenges in the contemporary global business scenario.
It has been apparent that the bank has a huge scope of exploration, interpretation in the
concerned factor.

Banking Industry 4
Literature review
As per Black, Morrison and Gregersen, (2013), the global business has changed with formation
and replacement of trends with changes in production and consumption framework. It has been
found that Australian bank industry has major four players such as the Commonwealth Bank, the
National Australia Bank, Australia and New Zealand Banking Group and the Westpac Corp.
These four largest banks do not operate within Australia but also in different other countries.
However, these banks are the major reason for the expansion of Australian economy in an
affirmative way but these are seen to be experiencing several crucial challenges in the global
business scenario (Ferraro and Briody, 2013). It has been found that there is a number of
challenges in a contemporary business environment such as the growth of new and emerging
markets, innovation, communication and huge competition. It has been analyzed that developing
countries especially in Asian Countries, new and rapidly expanding markets are being created in
these countries with the increase in the standard of living (Cavusgil, Knight, Riesenberger,
Rammal and Rose, 2014). It has turned into considerable influence on the global businesses.
Another factor is innovation in which the products and services are upgraded in every industry.
This has become the challenge aspect for the established multinational companies as they are
facing extensive competition. Communication has become wider in nowadays which increase the
role of it by providing depth information about the products and services to make aware
customers. The competition has increased due to development of the small and medium
enterprise entrants in the industries (Claessens and Van Horen, 2012).
It has been discussed earlier that the Royal Commission of the Government of Australia is the
biggest bank of Australia. This bank has around 147 Authorised Deposit-Taking Institutions
(Asianbankingandfinance.net, 2018). This bank is operated in a number of places in Australia as

Banking Industry 5
well as internationally. It has been found that banking business has faced challenges in Australia
due to lack of efficiency, lack of trust, usage of internet banking, up gradation of services and
fluctuating foreign exchange rates. According to Amiti and Khandelwal, (2013), the banks of
Australia have low efficiency in the term of cost and technical in comparison to other global
banks. Lack of trust is another challenge for the banks of Australia as the burdened with several
huge scandals and frauds increased which in turn has led to the loss of welfare of the customers.
Online banking is increased day by day which attracts a number of customers to go for an
international bank and it has been found in the context of Australian bank that these banks have
been lagging behind in the aspects of the development of proper online banking framework. The
technology in the banking services has increased which encourage number of banks to come in
the market with upgraded and diversified services in all domains, in which aspects the
comparative risk-averse big banking businesses have been lagging behind (Dunning, 2014).
Flexible exchanging rate is being adopted by all the major economies and the proposition of the
constant amending foreign exchange rate is felt by the banking companies of the country. It is
crucial for the banking industry to compete with other banks by evaluating the strategies which
have been adopted by them.
Research question
The research questions and the hypothesis of the research paper are defined below:
Research questions
 What sorts of challenges are faced by the banks of Australia?
 What are the challenges in the contemporary business environment?
Hypothesis

Banking Industry 6
 Challenges of banking industry may impact the entire activity of the business of
Australians Banks.
 Challenges of banking industry may not impact the entire activity of the business of
Australians Banks.
Research methodology
Research methodology is the imperative element for the research paper in which a researcher
accumulates the desired information from the various available sources.
Research Methods
Qualitative as well as quantitative approach has been considered while initiating the research as
it helps researcher to get the information regarding the topic in both quality as well as quantity
manner. Quantitative approach given information in the form of statistical form on the other
hand qualitative approach is given information in the descriptive way. Both approaches are
considered for this research .Along with that primary as well as secondary sources have been
taken to accomplish the research (Nirmala, 2013).
Data collection
The key objective of collecting the data is to get realistic and quality information regarding the
research topic. To gather the information, primary and secondary both method have been taken
because these methods provide an opportunity to the researcher to get information in an effective
way (Turkenburg and McAuley, 2013). The researcher has prepared a questionnaire for the
employee of Bank of Australia to get information through primary data in which 10 questions are

Banking Industry 7
entailed. These questions are related to the challenges that are facing the banks of Australia in
now a day. Secondary sources are also used by the researcher to get depth information regarding
the topic in which journal articles, books, online sources are been used (Johnston, 2014).
Sampling techniques
The data has been collected in a huge manner that is why it would not be possible for the
researcher to analyze the entire data at once without applying techniques. That is why random
sampling technique has been chosen to analyze the huge data because it facilitates researcher to
give chance all selected sample (Nishad and Sankar, 2016). It is the effective technique that
helps to provide the equal chance.
Research strategy
The research can be more effective if it is done within the time frame that is why it is required
for the researcher to apply effective research strategy. The objective of the research can be
attained in an effective manner if activities of the research synchronize in table form with time
scale. That is why the researcher has made time scale for all the activities in a systematic manner
so that all activity can be synchronized in a sequence way. The systematic approach has been
considered to make the action plan for the research. It assists to accomplish the task within time
frame without getting delay. The trust of readers would be increased due to give research
outcomes on time (Wetherly, 2014).
Target market
It is vital for the researcher to set the target market so that the problem could not arise regarding
where data can be gathered. It helps to gather the data in an effective manner without getting
confused and along with that it does not consume the time. The combination of primary as well
as secondary sources has been considered to set out the target (Thomas, 2015). The questionnaire

Banking Industry 8
has been prepared for the employees of bank so that they give an instant answer to the selected
questions regarding the challenges of bank. On the other hand secondary sources assisted to
gather the data through journal articles, books and online sources which exist after the year of
2009.
Ethical consideration
the research should be made with ethic and valid manner so that the trust of the readers can be
made over it in an effective manner. Along with that it helps the researcher to carry out this
behavior for accomplishing the research. This research has been made after keeping
consideration of ethics. The value and emotions of person have kept great value by this research.
The collected data regarding research through questionnaire has been spoiled after using in the
research so that the personal information of the employee cannot be revealed (Smith, 2015).
However, the researcher has faced the issue of plagiarism and copyright issue at the time of
collections data by secondary sources.
Limitations
The limitation is the part of the research that show the issues faced by the researcher at the time
of accomplishing the research. These limitations impact the research study in adverse way that
can impact the result of the research. Lack of time is the key limitation for the researcher by
which the researcher is not able to gather the information through considering each factor of the
research activity. Money constraint is another limitation for the researcher because of it the
researcher is unable to get access to collecting the data which is the cause of collecting the

Banking Industry 9
valuable data. Lack of access to the data is deemed as the limitations that being the cause of
subject at the moment of performing the research.
Time scale
S.
No.
Activities Time
frame
(week)
Descriptions
A Selection of topic 1 week The topic will be chosen for conducting the research in
this first step.
B Planning of the
research
1 week This step will plan the research in an adequate manner
after getting the topic. It is considered as the roadmap in
which the researchers get instructed to follow the
activity.
C Carrying out of the
selected plan
3
weeks
The planning which has been done in the second step
will be implemented in this step. The plans will be
carried out for further requirements.

Banking Industry 10
D Selection of the
methods of data
collection
1 week It is essential for the research to assemble the data
concerning the topic. This step will be obliging for the
researcher to choose the suitable approach and
techniques to amass the data. Primary and secondary
sources are been considered to collect the data.
E Data analysis 1 Week After amassing data with proper method, the data will
be analysed in a valuable manner with the help of
sampling data.
F Discussion 1 week The analysed data will be defined in a capable way to
take out the responses to the selected questions of the
revision of the research.
G Conclusion and
Recommendation
2
weeks
According to the data analysis and discussion, the
conclusion will be drawn and the recommendations will
be made.

Banking Industry 11
Gantt chart
S.No. Activities Duration 1 2 3 4 5 6 7 8 9
A Selection of topic 1 Week
B Planning of the research 1 Week
C Carrying out of the selected plan 1 Week
D Selection of the methods of data collection2 Week
E Data analysis 1 Week
F Discussion 1 Week
G Conclusion and Recommendations 2 Week
Weeks

Banking Industry 12
Conclusion
In the limelight of above discussion, it can be concluded that banking business in Australia is
most dynamic and developed ones. It has been found that the banking business of Australia is
facing number of issues in the contemporary global business scenario. The risks and challenges
in the context of research topic has been defined in an efficient manner. The research
methodology section has been defined in an appropriate way by including research approach,
strategy and techniques that facilitates researcher to get data in a sophisticated way. The action
plan and limitations have been elaborated for this research paper to enhance the better
understanding about the research paper.