MGMT20143 Assignment 2: Virtual Reality in Banking

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Central Queensland University, Australia
Term – 2019
MGMT20143 ASSIGNMENT 2
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Executive summary
Virtual Reality in banking provides financial assistance to the small scale business owners and
others as well. The most crucial thing which company changed in their process is that they don't
provide loans on credit score of the business holders, but it offers loans on the real-time business
health and current performances. All the facilities especially the seeking of nearby banks and
ATM are also able to get obtained through this method.
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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
1. Issues identified in the existing BM/Innovation needs................................................................5
2. Benefits to customers/Clients from New Idea.............................................................................6
3. Business model............................................................................................................................9
4. Key Interrelationships in the Proposed Model..........................................................................10
5. Key Success factors of the Proposal..........................................................................................11
6. Assumptions and Critical Risks for New Business Model........................................................12
7. Evaluation of the overall feasibility of the idea.........................................................................13
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
Business model canvas is a template used by the start-ups and existing businesses for describing
its value proposition, key partners, revenue streams, cost structure, brand values, etc. The
banking services are very crucial and need of innovation in the industry is high. The use of VR
(virtual reality) in the industry is making the transactions and other services convenient for the
small business. The application is very useful for the users. In the report discussion on the
components of the business model that are essential for the success will be done. Risks and
overall feasibility of the organisation will be discussed as well
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1. Issues identified in the existing BM/Innovation needs
Transparency – It is required for any financial organisational to make their process of providing
loans to the customers more transparent so that customers have faith in the organisation.
Customers are those people who want money to start or expand their businesses and open
process where they can access the stages of their ongoing loans.
Human Resources - The process of applying for a loan to get a loan in very long and time
taking in Australia earlier and has a fast online method but it still has dealing with a limited
number of working full time and part time staff which is the prime changes company need to
change in the organisation. VR made it easy and fast to get a loan (Amore, et. al., 2013).
Available modes – The new model has an online process where they access data-driven online
platform for lending the finance to the small scale organisation. Company has its own channels
such as mobile application and all which helps company to interact with others but still company
needs to become available at different modes so that interaction with customers will be easier.
Lack of access to loans – The aim of the launching VR in banking was being transparent and
made the process easy for the owners of small business owners. The industry has a lack of access
to loans which could be one of the reasons for the invention (Tomy, et. al., 2012).
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2. Benefits to customers/Clients from New Idea
Easy process – The whole process of using the application is straightforward. It helps its clients
to access the bank information in less time which makes the process less complicated.
Digital transparent medium – Company is accessing online data platform for their activities
which is again very beneficial for the customers because they can see the progress of their
processing loan which helps them to trust the organisation.
Minimum security standards – They have a fast digital process which does not mean they
compromised on their security standards, but they make the process less complicated with
selective security standards. It helps customers to complete their financial needs and increase
(Berrospide, et. al., 2015).
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Key Partners
 Partners
 E-Way

Key Activities
 Focusing on
generating
more
customer
data
 Proper
digitalizatio
n of the
whole
process
 Fulfil
customers’
needs
 Minimising
the security
standards in
industry
 Provide
loans to
individuals
too.
Value
Proposition
 Being a
leading credit
company
 Make some
big
partnerships.
 Expand
business into
areas
 Target big
business
houses
 Provide long
terms loans to
business
owners and
individuals
Customer
Relationships
 Improved and
advanced
customer
services
 Assistance fees
 24x7 Personal
assistance
 Digital
availability
 Websites and
mobile app
Customer
Segments
Start-ups
with big
ideas
Middle
scale
companies
Small scale
business
owners
Key Resources
 Human
resources
 Experienced
Managemen
t
Channels
 Social platforms
 Company’s
mobile app
 Digital platforms
 Branches of
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 Customer
bank
offices
Cost Structure
 Advertisements
 Operational costs
 Structure cost
 Digital marketing fees
 Taxation
 Investments (small)
 Business expand expenses
Revenue Streams
 Business loans interest
 Advisory fees
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3. Business model
It is one of the most innovative changes which help the users to be more reliable to the services
of respective banks. Their cost structure includes administrative expenses, infrastructure costs,
taxes, sales & marketing, salaries and licensing fees.
The proposed model is having wide scope in the industry as with the help of this the operations
in the banking field will become easier and more reliable (Devlin, 2014). The customer base for
the respective
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4. Key Interrelationships in the Proposed Model
The business model of VR explains that the industry has a value to sustain long in the market
which can provide its customers. Company's employees are one of the most critical resources of
the company which has an interrelationship with the business model. The company has its
presence on social media and all available digital platforms which help the company to interact
with its customers quickly that would be very helpful to increase its revenue of the company.
The primary income generating sources for the company is interest on loans, services fees and
loan protection fees which are entirely based on the large group of customers which made them
number one in such short time (Morkoetter, et. al., 2017).
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5. Key Success factors of the Proposal
 Team composition: The team should be managed properly while the execution of the
idea. Eventually, the team is the one who performs the execution hence proper
management is essential (Dudin, et. al., 2015). The company is providing loans to the
small businesses and it is operated by the experts and professional.
 Objective: the objective should be clear and specific. At the time of execution of an idea,
the objective of the company should be clear. The objective is the aim of the company for
which the company exists. It should not be ambiguous.
 Organizational structure: at the time of the execution of the idea this factor should be
managed in a proper manner. Each and every organisation has an organisational structure
(Coes, 2014).
 Risks: Risks are the threat prevailing in the market. During the execution of an idea, risks
should be measured properly and the organisation should find ways to minimize the risk.
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6. Assumptions and Critical Risks for New Business Model
 Debt risks – It is always a more significant risk for the financial companies to get debts
which can affect the financial condition of the company itself. Company is providing
quick financial solutions, so that small business owners quickly get credit help, but fast
solutions might increase the changes of debts for the company.
 Cyber security – company is dealing with its client online. Company is handling data
from online platforms to provide online loans to their customers which helps to make
their process easy and fast, but there are threats of cyber-attacks, data loss and security of
data etc. Cyber security is getting big issue day by day (Haider, 2015).
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