Online Banking Industry In Australia Students †MyAssignmenthelp.com

Question: Discuss about the Online Banking Industry In Australia. Answer: 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 approache s 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: 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 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 (Oleary 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. 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 im portant 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 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). 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. 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. 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. 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. The e-banking services can be offered by the management of the organizations without any presence of the physical evidence of the banks. 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. Hence, it is acceptable that the consideration of the effective time and cost efficiency are the major reasons behind this particular growth. 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. 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. A user can easily transfer money to the bank account of others through the consideration of the e-banking services quite comfortably. Hence, it can be stated that user friendly approaches are considered to be the major reasons behind the growth. There are several challenges of online banking activities, such as 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. Secondly, the organizations can face different types of challenges, such as loss of customers and poor business growth can affect the sustainability. The federal government needs to improve these particular approaches for better sustainability. Conclusion and Recommendations 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 of Australia is trying to go cashless within the year 2025. User friendly approaches are considered to be the major reasons behind the growth of the online banking services. Moreover, the consideration of effective time and cost efficiency are the major reasons behind this particular growth of the online banking approaches. There are several challenges of online banking activities, such as hacking of personal information, account information and data of the users can create several ethical challenges. First of all, the organizations can face different types of challenges, such as loss of customers and poor business growth can affect the sustainability. Secondly, the organizations can lose support from the important organizat ional stakeholders. Thbe following recommendation plans will assist to overcome the challenges. First of all, effective awareness program needs to be considered by the government and banking authority collaboratively. In addition, this is also acceptable that the consideration of the effective public relationship program will help the country to become a cashless economy. Lastly, this is also important for the banking authorities to tighten the security option. The inclusion of the strong and safe technological devices along with effective as well as advanced information communication technological devices will assist in effective and secure online banking services. References Bock, L. (2015). Work Rules. New York: Springer. Bossidy, L. (2008). Execution. New Jersey: John Wiley Sons. Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance. 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