The Continued Growth of Microfinance in Banking: HSBC Case Study

This report examines the burgeoning field of microfinance within the banking sector, using HSBC as a central case study. The introduction provides background information on the increasing demand for microfinance services, emphasizing its role in assisting low-income individuals and fostering self-sufficiency. The research aims to analyze the growth of microfinance, particularly within HSBC, and explores its applications, the drivers behind its demand, and its significance for lower-income groups. The methodology involves both primary and secondary data collection through questionnaires and online sources, respectively, employing a qualitative research approach to gain insights into the underlying reasons and motivations. The data analysis will use an inductive approach to interpret the collected information. The structure of the final work includes an introduction, research objectives, questions, literature review, methodology, data analysis, and conclusion, providing a comprehensive overview of microfinance's expansion and its implications for the banking sector and financial inclusion. The report also includes references to relevant books and journals.

Proposal

Table of Contents
TOPIC..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Background..................................................................................................................................1
Research aim................................................................................................................................2
Research objectives......................................................................................................................2
Research questions.......................................................................................................................2
DATA COLLECTION AND ANALYSIS......................................................................................2
RESEARCH METHODOLOGY.....................................................................................................3
Data analysis and interpretation...................................................................................................4
Structure for final work................................................................................................................5
REFERENCES................................................................................................................................6

TOPIC
“Continues growth of micro finance in banking industry. A case study on HSBC (Hong
Kong and Shanghai Banking Corporation).
INTRODUCTION
Currently micro finance is growing in banking industry due to higher demand of it. It is a
type of banking service which is rendered to the unemployed or low income individuals to
accomplish goals of their life. It helps the people to become self sufficient. Micro finance is a
provision of loan, money transfer, insurance and saving accounts to the individuals who are not
able to get finance for their business purpose due to poverty. Now a days it is growing massively
in the banking sector due to higher demand of people (Tchuigoua, 2014). It annual global growth
is around 9% on an average which is huge percentage. Different types of management standards
such as universal standard for social performance management were formulated by the legal
parties of UK to make the sector responsible towards its clients. In banking sector, for the
purpose of attaining long term sustainability it is very important to enhance profitability. The
main objective of this industry is to help people to accomplish all their unmet goals by providing
them micro finance (Gbandi and Amissah, 2014). All the banking needs of low income
individuals are being catered by the sector and them help them to overcome financial crisis that
are stopping them to grow. Currently demand of for such type of service is rising due to
enhanced demand. In developing countries the development of this sector is more strong as
compare to developed nations as people in those regions are more focused with the opportunities
of growth. The main source of funds for small businesses and entrepreneurs is micro finance and
it helps individuals who are not able to earn sufficient amount to achieve their business and
personal goals.
Background
HSBC (Hong Kong and Shanghai Banking Corporation) is one of the largest banking and
financial service companies all around the world. It was founded by Thomas Sutherland in year
1865 in Hong Kong. Its Headquarters are in 8 Canada Square, London, United Kingdom. The
CEO of the company is James Emmett. There are various subsidiaries of HSBC such as First
Direct, HSBC Expat, M & S bank, HSBC bank etc. Currently the business entities is employing
more than 235000 individuals who help to execute all the operational and executional activities
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in appropriate manner. It has almost 3900 offices in 67 different countries. Currently micro
finance is growing rapidly due to enhanced demand of it and it is vital for HSBC to analyse the
elements that are resulting in this situation so that the demand can be managers effectively
(Corsi, Marmi and Lillo, 2016).
Research aim
Main purpose of this research is to “Analyse growth of micro finance in banking sector
and the organisations which are operating under this industry.”
Research objectives
 To enhance knowledge regarding micro finance and its applications.
 To evaluate the reasons that are resulting in enhanced demand of micro finance.
 To analyse importance of micro finance for lower income group.
Research questions
 What is micro finance and where it is used?
 What are the reasons that are resulting in increased demand of micro finance?
 Why micro finance is important for lower income group?
DATA COLLECTION AND ANALYSIS
There are various types of data which are used by researchers in order to conduct their
research. The main purpose of data collection is to find appropriate solutions for the research
problems. It is vital for the researcher to use appropriate method of data collection so that
accurate and appropriate results could be gathered. The process of collecting and measuring the
information is known as data collection. The main purpose of this procedure is to find right
answers for the research questions and accomplish all the objectives that are formed earlier.
Evaluation of the outcome is also being done under this activity. In or to complete the respected
research project researcher is going to use primary as well as secondary data. Both of them are as
follows:
Primary data: All the information which is gathered for the first time and have not being
used by other for the purpose of research. It is also known as fresh or first hand data. The content
which is collected by using this method is accurate, appropriate and effective as it is directly
gathered by the person who is conducting a research. There are various ways in which it can be
acquired by people. These are interview, observation, schedule, surveys, questionnaire etc.
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Secondary data: The content which is previously has been used by the researchers is
called secondary data. There are two different types of it, qualitative and quantitative. Qualitative
information can be gathered from newspapers, journals, articles, websites of business entities,
transcripts, diaries and interviews. Quantitative data could be acquired by researcher form
financial statements of company, statistics etc.
For this research researcher is going to use primary as well as secondary data because
both of them are required to complete it. Questionnaires are going to be used for the purpose of
gathering primary information and journals, articles and different online sources are going to be
used to analyse secondary information. The sample size for the research is 40 and the
respondents will be the employees of HSBC (Cleary, Horsfall and Hayter, 2014). Different types
of questions will be asked by them that are related to the research objectives.
RESEARCH METHODOLOGY
The process in which data is collected and used to form business decisions. It is very
important for the research to select best suitable method for the research so that relevant and
accurate results can be gathered. The theoretical and systematic analysis of information is also
known as research methodology. It includes basic principles, procedures that are used in the
study by researcher to attain all the objectives that are formulated previously. There are two main
types of researches that are adopted by researchers in order to complete the study. Both of them
are as follows:
Qualitative: It is a primary exploratory type of research which is used to gain knowledge
of underlying reasons, motivations and opinions. It helps the researcher to get an insight in to the
issues and guide to form hypothesis and develop ideas to resolve them. It is also used to uncover
the trends that are taking place in thoughts, opinions and also creating problems. It varies due to
use of structured and semi structured techniques (Serrano-Cinca and Gutiérrez-Nieto, 2014). The
methods that can be used by researcher who are conducting qualitative research are focus group,
interviews, observation etc. If questionnaire is used for the study them the researchers are
required to make sure that the sample size and respondents are small because in this technique
diminutive samples are used. It is a scientific method which is mainly used to gather non-
numerical data. In includes meaning, concepts, definitions, symbols, description, metaphors and
characteristics of the elements that are related to research questions and objectives. It is
employed across many academic disciplines that are taking human elements of natural and social
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science in to consideration. Established theoretical sources are used in this method to complete
the study.
Quantitative: In this method numerical data is used by the researchers to quantify the
problem or issues that are identified by the researcher. It is mainly used to quantify the opinions,
behaviours and various different defined variables. Measurable data is used in this type of
research by the researchers in order to formulate facts and uncover patterns in the study. The
methods that are utilised to collect information under this technique are more structured as
compare to qualitative approach. It can be gathered from different surveys such as online, paper,
kiosk and mobile. Apart from this longitudinal studies, online polls, systematic observations,
face to face interviews etc. are also used to acquire content for quantitative research (Leamer,
and Stern, 2017).
From both the above described methods for present study the researcher is going to use
qualitative method in order to complete the research because it is mainly based on theoretical
information and it is very east to understand. It can help the observers to gather appropriate and
exact information that can help them to enhance their knowledge. Another reason behind its
selection is that it may help to understand views and perceptions. It offers vision to different
problems and then guide to find best suitable ways to overcome the same. With the help of this
research method observers and researcher may may analyse the issues in depth.
Data analysis and interpretation
Data analysis and interpretation are the main aspects of a research in which data from
different sources is collected and then solutions for the research questions are figured out. It is a
process of gathering, cleansing, inspecting, transforming and modelling collected information in
an appropriate manner in order to discover new things related to the research topic. It is very
important for the researcher to analyse all the content which is accumulated from different
sources for the purpose of finding answers for questions. Data interpretation is the activity which
is performed by the researcher after formulating the charts with the help of collected data. It can
help to reach to a conclusion of the whole research. There are two main types of approaches that
can be used for the purpose of analysing data. Both of them are as follows:
Inductive: This approach is also known as inductive reasoning which starts with theories
and observations that are proposed towards the end of research process as a result of observation.
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It is generally associated with qualitative method and there are some set rules that are required to
be followed by the researcher while using it.
Deductive: It is associated with quantitative research method which begins with
hypothesis which is based upon existing theory. There are no set rules and regulations for this
approach for the researchers (Wickham, 2016).
From both the above described approaches of data analysis inductive approach is going to
be used for present study as it best suits to the qualitative technique of research methodology. As
the data is going to be collected from questionnaires so it can help to use it in proper manner.
Structure for final work
The final work will be completed in a structured format first of all the topic will be
defines and then an introduction regarding the topic will be provided. Overview and background
both are the elements of it that are going to be recorded under introduction. Afterwards aim,
objectives and research questions will be formulated. After all this literature review, data
collection, analysis, interpretation and research methodology will be completed. At the end
conclusion and recommendations are provided by the researcher.
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REFERENCES
Books and Journals:
Cleary, M., Horsfall, J. and Hayter, M., 2014. Data collection and sampling in qualitative
research: does size matter?. Journal of advanced nursing. 70(3). pp.473-475.
Corsi, F., Marmi, S. and Lillo, F., 2016. When micro prudence increases macro risk: The
destabilizing effects of financial innovation, leverage, and diversification. Operations
Research. 64(5). pp.1073-1088.
Gbandi, E. C. and Amissah, G., 2014. Financing options for small and medium enterprises
(SMEs) in Nigeria. European Scientific Journal, ESJ. 10(1).
Leamer, E. E. and Stern, R. M., 2017. Quantitative international economics. Routledge.
Serrano-Cinca, C. and Gutiérrez-Nieto, B., 2014. Microfinance, the long tail and mission drift.
International Business Review. 23(1). pp.181-194.
Tchuigoua, H. T., 2014. Institutional framework and capital structure of microfinance
institutions. Journal of Business Research. 67(10). pp.2185-2197.
Wickham, H., 2016. ggplot2: elegant graphics for data analysis. Springer.
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