Chapter One: Introduction
- Introduction
Technology has become an essential part of human operations; numerous fields of work today, use technology-based applications while carrying out daily activities. This is because the use of technology aids the execution of duties by saving time and costs. The advancements in technology have made work easier; a comparison between the ancient days and the present shows that operations in the present time are efficient and save resources, because of technology use.
The banking and finance industry in Australia is one of the industries that have embraced the use of technology applications in their operations (Cornish, 2010). Banking technology applications range from mobile banking to plastic money applications. Plastic money includes credit cards, debit cards, and ATM cards. The major focus of this study, therefore, is to explore the impacts that technology applications have on the banking and finance sector in Australia. The research will also attempt to offer some recommendations to the banking institutions that do not employ technology use, about the best applications. The study will also evaluate the advantages and disadvantages associated with such applications in the banking and finance sector.
- Background of the study
The history of banking in Australia dates back to 1817, when the first bank, the Bank of New South Wales was established in Sydney (Cornish, 2010). Banking in Australia evolved through the years, to a period where banking institutions in the country were classified into two categories; saving and trading banks. The Reserve Bank of Australia was founded in 1960 and assumed the Central Bank function.
Online payments are the profound technology applications widely used in the Australian banking and finance industry. Studies carried out in 2010 reveal that an approximate ninety percent of Australians have an access to the internet. Eighty percent of these people have made online purchases using their bank accounts (Cornish, 2010). The Reserve Bank of Australia uses technology applications such as the authentication of bank notes, and the regulation of interest rates at which it funds the commercial banks in the country.
- Statement of the problem
A majority of the banking and finance institutions in Australia currently use technology-based applications for their operations. There are, however, some institutions especially the marginalized areas of the country that have not yet adopted these technology techniques. These institutions, therefore, are faced with numerous challenges such as delays in serving their customers, and inefficiencies in operations.
The ideal situation for the banking and finance sector in Australia entails a smooth running of operations, with the aid of technology. All banking institutions should enable their customers to access their services from the comfort of their residence by use of technology (Cor Chiline, 2002).
This study, in this light, will attempt to provide an overview of the advantages associated with the use of technology in banking, to promote its adoption in those institutions that have not done so. The research will also provide an outline of the effects the use of technology has on the Australian banking and finance sector.
- Significance of the study
The present scenario of the banking and finance industry shows that the use of technology applications is essential due to the numerous customers and transactions associated with banking institutions. This study is designed to aid the understanding of the various technology applications available for use in Australian banking and finance sector. The study will also outline the benefits and costs for the applications. This study will instill knowledge about the use of technology in the banking and finance industry.
- Objectives of the study
- Research questions
- What are the merits of using technology-based applications in banking and finance?
- What effects do technology applications have on the operations of the Reserve Bank of Australia?
- Research hypotheses
H1: There are benefits associated with the use of technology applications in banking and finance.
H2: The use of technology applications improves the quality of services rendered by the Reserve Bank of Australia.
H0: There are no benefits of using technology applications in banking and finance.
- Limitations of the study
One limitation of this research is time; the researcher faces a challenge of completing the study in limited time. This is because of the collection of data involves seeking permission first from the management of the Reserve Bank of Australia, and it may take time to receive a reply from them. Another limitation of this study is reliability of the information collected. This study will use secondary data; there is no guarantee of the reliability and authenticity of the data sources that the researcher will get.
Chapter 2: Literature Review
2.1 Introduction
This chapter will help the researcher to recognize other similar studies, and will use their results to better comprehend this study. This section will explore the elements of the research questions, and the documented literature from previous similar studies. The principal objective for this review of the literature is to situate this research in the context of previous studies.
The concern for this review is to investigate the effects of technological-based applications on the banking and finance sector in Australia. The study will focus on the Reserve Bank of Australia, formerly known as the Central Bank of Australia. The researcher will address the benefits of using technology-based applications in this institution, and concentrate on the extent to which it has used these applications.
2.2 Types of technology-based applications used in the banking industry
Computers are the most popular machines used in banks to house applications that support online banking. Online payment systems enable customers to make purchases and reimbursements by a simple click of the computer (Corvoisier & Gropp, 2009). Mobile banking services are other examples of the technology-based applications used by customers to access their accounts from the comfort of their homes or places of work.
2.3 The advantages of using technology applications in banking and finance
One significant advantage of using technology in banking and finance is convenience. Online banking allows an individual to handle transactions and monitor their bank accounts from anywhere, at any time. Other advantages include, faster transactions, fewer visits to the bank and fast payment options (Corvoisier & Gropp, 2009).
2.3 The effects of technology use in banking and finance
The use of technology in banking has improved the services rendered in the banking institutions; the use of technology has eased the banking transactions and has promoted the quality of these services. According to Cor Chiline 2002, individuals feel safer accessing their bank accounts online as opposed to physically because of the risks associated with trips made to the bank. Such risks include theft and the loss of funds.
The use of technology in the Australian banking industry has increased the number of online customers, who make purchase transactions and transfer of funds to their loved ones (Cornish, 2010). The use of technology in banking also enables an individual plan for the future investments because of the convenient and close monitoring of their accounts (Corvoisier & Gropp, 2009).
Chapter 3: Research Design and Methodology
3.1 Introduction
This chapter focuses on the methods for data collection the researcher will employ for this study. It explains the reasons for choosing a given data collection technique. This chapter also describes the location, population, and sample chosen for the research. This section will highlight the instruments for data collection, and give an overview of how data analysis will be conducted.
3.2 Design of the study
This study will use a qualitative design; this design lays focus on the issue under study rather than conducting a general study (Kothari, 2004). This is because it is a flexible technique, and applicable for secondary data. This design employs projective techniques for study and allows generalizability (Singh, 2012). The qualitative design will enable the researcher to investigate the effects of the use of technology-based applications in the Reserve Bank of Australia.
3.3 Locale of the study
This study will focus on one of the leading banking and finance institutions in Australia, the Reserve Bank of Australia. The rationale for this selection is the level of the technology progress witnessed in Australia. The Reserve Bank of Australia is chosen because it is the leading banking and finance in the country; the findings of the study will be generalized to other banking and finance institutions in the country. The research has also selected this institution because of its diversified use of technology.
3.4 Population
Objects with similar features define a population. The population for this study is the banking and finance institutions in Australia.
3.5 Sampling
The researcher will use the random sampling technique to select one banking and finance institution in Australia. This is because random sampling will give each institution an equal chance of selection to represent the population of this study.
3.6 Data collection methods
The researcher will first ask for permission from the Reserve Bank of Australia; this is by way of a letter of introduction that the researcher will send the management of the corporation. The letter will highlight the significance of the research and outline the needed information for the study. The researcher will then select the departments for this bank, from which to collect the data.
3.7 Analysis methods
The analysis stage of research prepares results obtained from the study by extracting information from the collected data. This study will use a regression analysis as its data analysis technique, to establish the relationship that exists between technology use and banking services. The main goal of a regression analysis is to establish the strength of the existing relationships between the independent and dependent variable (Rice, 2007). The use of technology is the independent variable for this study while banking service is the dependent variable. The reason for choosing this a statistical regression analysis is to determine if the use of technology applications affects the quality of services rendered by banking and finance institutions.
References
Cor Chiline, V. V. (2002). Modern trends in global banking development. USA: Dissertation.
Cornish, S. (2010). The evolution of central banking in Australia. Sydney: Reserve Bank of Australia.
Corvoisier, S., & Gropp, R. (2009). Contestability, technology and banking. Mannheim: ZEW, Zentrum für Europ. Wirtschaftsforschung.
Kothari, C. R. (2004). Research methodology: Methods & techniques. New Delhi: New Age International (P) Ltd.
Rice, J. A. (2007). Mathematical statistics and data analysis. Belmont, CA: Thomson/Brooks/Cole.
Singh, S. R. (2012). Research methodology. New Delhi: APH Pub. Corp.
