LSBM303: Digital Transformation and Fintech in the Commonwealth Report

This report analyzes digital transformation within the Commonwealth, exploring its opportunities and challenges, including the impact of COVID-19 on trade, investment, and the Fintech sector. The report discusses the state of play in digital transformation, highlighting trends and technological advancements that are reshaping the business landscape. It evaluates the effects of the pandemic on the financial technology sector, examining both the immediate and long-term consequences for businesses and economies. Furthermore, the report delves into the impact on trade and investment, providing a comprehensive overview of the evolving landscape and offering insights into the future of Fintech within the Commonwealth. The report also provides recommendations for Commonwealth Governments to support the fintech sector and encourage collaboration between Commonwealth countries. The report is based on research and analysis, incorporating relevant literature and providing a critical evaluation of the key issues.

Portfolio

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a. What is state of play and opportunities as well as challenges within Digital transformation in
Commonwealth............................................................................................................................1
b. What is evaluation of impact which COVID- 19 has had or will have on trade along with
investment in specific on Fintech sector......................................................................................4
TASK 2............................................................................................................................................5
Covered in PPT............................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Digital transformation refers to adoption or use of digital technology with the purpose of
transforming services by replacing manual processes or non digital activities having digital
processes as well as replacing older digital technology with some new or advanced digital
technology (Christoffels, 2019). In commonwealth, digitalisation affords wider opportunities for
developing new industries, enhances market market access together with builds new ways for
delivering better services. Fintech is financial technological innovation that comprises all things
starting from mobile banking, peer to peer payments, distributed ledger techniques to digital
currencies.
The present portfolio is about COVID-19 and the changing global trade landscape. It
discusses state of opportunities and challenges in Digital Transformation with the
Commonwealth. It further evaluates impact of COVID-19 on trade and investment along with on
specific Fintech sector.
TASK 1
a. What is state of play and opportunities as well as challenges within Digital transformation in
Commonwealth
Digital Transformation can be delineated to a process to utilise digital technologies for
developing new or making changes in current techniques within business culture, experience of
customers and processes for meeting requirements of changing business addition to market. It
leverages technologies for the purpose of creating values, new services, etc for multiple
stakeholders, acquiring capabilities and making innovation in order to rapidly adapt dynamic
situations pertaining in the business environment (Xiao, 2019). Commonwealth is said to a
traditional term that denotes to political community which is founded for some common good. It
involves group of population with common aim fro improving self as well as help others, share
knowledge, concerns and resources.
Commonwealth of Nations is said to countries that are linked with UK that speak
English. In context to Commonwealth of nations, various developments are made by the political
system so to enable economic activities through interaction of digital technologies together with
physical ICT infrastructure (Bjola and Zaiotti, 2020). There are various digital transformation
trends which Commonwealth Nations are planning to consider. It enables leapfog industrial age
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infrastructure, provides advantages of new markets that are offered through digital platforms,
draw on vast knowledge spillovers from internet as well as exploit production possibilities that
are enabled by digital technologies. Through the concept, Commonwealth of Nations have
enhanced distance of technological frontier in order to race forward in business environment and
create healthy competitive challenges for capturing production mandates within operations which
are automated in nature.
According to O'Brien (2018), Digital transformation in Commonwealth of Nations or
United Kingdom have following opportunities:
 Exploring new technologies: Digital transformation provides opportunity of exploring
together with leveraging new technologies in short duration (Mazzucato, 2018). Through
cloud tools, for instance, time strapped managers of organisations are able to opt-in for
effective boosting cloud together with SaaS environment, eliminate requirement of
leaders which micro manage parts of business and automates entire processes performed
for trading.
 Thrives towards rapid changes: Commonwealth nations are incredibly dynamic, so is
digital world. In case with digital transformation in Commonwealth of UK, it is an
opportunity to maneuvering with the rapid changes. With this, it will become possible to
make use of calculated risks as well as making necessary changes by shifting towards
digital transformation strategies without losing grounds in international market.
 Driving smarter relationships: Digital transformation have chances to foster
relationships through becoming more accountable for requirements of business and
customers (Brown, 2019). In Commonwealth of Nations or UK, digital transformation
assist in grabbing opportunity of fostering transparent dialogues with partners at
international level through looking towards honesty in business operations. It will build
strong agency relationships to lead more efficiency, better work experience, better work
quality and experience of activities for clients as well as vendors.
 Boosting bottom line: Within digital transformation, it is an opportunity for nations to
boost their bottom line. Digital initiative have greater chances for thriving digital
economy within Commonwealth of UK with active adoption of advanced technologies.
With this, the nation is able to attain growth, manage competition and survive in global
market (Zavratnik, Kos and Stojmenova Duh, 2018).
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Other than opportunities, there are certain challenges associated to digital transformation
within Commonwealth of UK which are as follows:
Culture and behaviour: As per a survey, most important obstacle in achieving digital
objectives is said to cultural as well as behavioural challenges (Smorgunov, 2018). Traditional
incumbents poses strong culture in nations. However, digital transformation needs flexible
culture and favourable behaviours of manpower. Form long duration manpower to risk adverse
managers with Commonwealth of UK, various culture and behaviours hinders digital initiative. It
is main challenge that creates cultural barriers through creating workforce transition plans within
digital transformation initiative.
IT infrastructure as well as digital expertise: In Commonwealth of Nations, various
traditional incumbent organisation depends on inflexible technology stack which supports
diverse kinds of monolithic applications (MacLeavy, 2020). It is a challenge for Commonwealth
of UK as it complicates applications release dependencies together with adoption of various
methodologies. Moreover, digital transformation needs experiences in use of new technologies
that may not possible for all entities in Commonwealth of nations to be available. Because of
this, digital transformation faces challenge of proper IT infrastructure addition to digital
expertise to make progress.
Lack of support: In Commonwealth of Nations, one of challenge in context to digital
transformation is limited support from business partners for adopting new technologies to carry
out practices in digital manner. As all business are comfortable in performing practices in same
ways as they are doing it earlier (Benson and Boyd, 2018). In UK, there are various business
partners that do not provide required support to other businesses so to adopt digital
transformation. Because of this, multiple businesses that are aiming for adopting advanced or
digital technologies faces the challenge in Commonwealth of UK.
Digital transformation brings wide number of opportunities for Commonwealth of Nation
or UK so that new industries are build, market access via digital trade are accessed and new ways
to deliver services in better manner are devised. Advanced digital production techniques assist
UK's Commonwealth to accelerate innovation, boost productivity together with raise value added
content of products that are produces in the country (Isaacs, 2020). However, there are various
challenges in the path of success for digital transformation that restricts adaptability to new
techniques.
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b. What is evaluation of impact which COVID- 19 has had or will have on trade along with
investment in specific on fintech sector
The impact of Covid-19 on companies has been too much and its still suffering from this
situation. The most companies who were most likely to impact are finance related companies
where their services has affected. During this pandemic situation, the emerging sectors like
Banking sector is one of the part of Fintech sector growth has hindered and now it will take some
time to revive themselves from this situation. Some of its impact of Covid- 19 on this sector are
as follows-
 The banking sector has faced the issue of irregularity in business functions and especially
UK is heavily impacted and its GDP fell by 2% in quarter one of 2020 as comparison to
previous quarter and has been forecasted to decline further sharply. So, this directly affect
the financial services of banking sector (Northern and Gardner, 2019).
 As, due to decrease in investment growth and outlook for trade remain weak in near some
weak with the figures of current situation because the pandemic lasted for almost whole
year. So, banking sector take some time to come back on their track and their growth rate
has been reduced for 2-3 years.
 The banking sector has been declined miserably in this pandemic and it was become very
tough situation for all to speed up their management again. So, the main business was
affected a lot and need major strategies to revive their position.
 It is big dramatic fall by company who has faced major crisis in FDI (Mason, 2020). The
global forecast of FDI will decrease by 40% in 2020. This will be major shock to banking
sector and because of this there are major sources were also reduces that could increase
the efficiency in the sector.
 Lack of business activity and transaction in this situation has not given any revenue
sources and profit to banking sector and intensely affect the operations activity. Apart
from there is no help from government has been provided. Almost all functions related to
its sector has not seen any improvement.
 Also decreasing in the costumer purchasing power and reducing their saving capacity has
extensively impact the activities of banking sector. As costumer is their main sources
where they can earn some money. After, reducing in their standard of living and overall
capacity has directly influence this sector.
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 In the many circumstances this sector were now need some important source of hope
where they can revive their growth rate. Decreasing in the income and saving proportion
of people of UK has affect the this sector mainly.
 Reducing in the export and import activities and it comes down at their minimum level.
Giving major support to other small business and micro business is also big reason that
they need to grow again and maintaining the status in the market (Damoah, 2020).
 In coming years, they were continue to be slowdown as the impact is long-lasting. Some
of its reason for this situation is non business transaction activities and zero involvement
of people in any of the sector. In UK this sector has majorly impacted and continue with
this phase for specific period.
TASK 2
Covered in PPT
CONCLUSION
From the report, it have been concluded that in modern world, advancements within
digital technologies are changing the ways in which businesses performs international trade,
fuels rise of electronic commerce, borderless digital trade addition to lowering barriers or tariffs
to internationalisation. Key opportunities in digital transformation includes Exploring new
technologies, Thrives towards rapid changes, Driving smarter relationships and Boosting bottom
line. At same time, challenges related to digital transformation are Culture and behaviour, lack of
support, IT infrastructure as well as digital expertise.
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REFERENCES
Books and Journals:
Benson, M. T. and Boyd, H. R., 2018. College for the commonwealth: A case for higher
education in American democracy. University Press of Kentucky.
Bjola, C. and Zaiotti, R., 2020. Rethinking International Organisations in the Digital
Age. Digital Diplomacy and International Organisations: Autonomy, Legitimacy and
Contestation, p.287.
Brown, C., 2019. Commonwealth Digital Education Leadership Training in Action: An
Evaluation.
Christoffels, M., 2019, November. A Framework for Managing Change Leadership in a Digital
Transformation Environment. In ECMLG 2019 15th European Conference on
Management, Leadership and Governance (p. 428). Academic Conferences and
publishing limited.
Damoah, O. B. O., 2020. Strategic factors predicting the likelihood of youth entrepreneurship in
Ghana: a logistic regression analysis. World Journal of Entrepreneurship, Management
and Sustainable Development.
Isaacs, S., 2020. South Africa’s (Unequal) Digital Learning Journey: A Critical Review. ICT in
Education and Implications for the Belt and Road Initiative, pp.187-211.
MacLeavy, J., 2020. Care work, gender inequality and technological advancement in the age of
COVID‐19. Gender, Work & Organization.
Mason, C., 2020. The Coronavirus Economic Crisis: Its Impact on Venture Capital and High
Growth Enterprises.
Mazzucato, M., 2018. Mission-oriented innovation policies: challenges and
opportunities. Industrial and Corporate Change. 27(5). pp.803-815.
Northern, S. and Gardner, M., 2019. ONE COMMONWEALTH, ONE COMMON
VISION. Knowledge Quest. 48(1). pp.34-41.
Smorgunov, L., 2018, May. Blockchain and a problem of procedural justice of public choice.
In International Conference on Digital Transformation and Global Society (pp. 13-23).
Springer, Cham.
Xiao, J., 2019. Digital transformation in higher education: critiquing the five-year development
plans (2016-2020) of 75 Chinese universities. Distance Education. 40(4). pp.515-533.
Zavratnik, V., Kos, A. and Stojmenova Duh, E., 2018. Smart villages: Comprehensive review of
initiatives and practices. Sustainability. 10(7). p.2559.
Online:
O'Brien. K. 2018. Three emerging opportunities in digital transformation. [Online]. Available
through: <https://econsultancy.com/three-emerging-opportunities-digital-
transformation/>
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