Research Proposal Soma Jalal PDF

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Faculty of Administrative Sciences and Economics

Banking and Finance Department

(2022-2023)

Research Methodology

Student Name: Soma Jalal Hamarashed


Student ID: 131519003
Department: Banking and finance
Course Name: Research Methodology
Course Code: BUS 405 \ K
Assignment: Research Proposal
Course Instructor: Dr. Waqar Ahmed
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Contents
Title: .............................................................................................................................................................. 3
Abstract: ....................................................................................................................................................... 3
Background: .................................................................................................................................................. 4
Research Problem: ....................................................................................................................................... 5
Research Question: ...................................................................................................................................... 6
Research Objective:...................................................................................................................................... 6
Literature review: ......................................................................................................................................... 7
Electronic banking:.................................................................................................................................... 7
Challenger bank: ....................................................................................................................................... 7
Nonbank electronic banking: .................................................................................................................... 7
Theories related to banking: ..................................................................................................................... 8
Benefit of electronic banking: ................................................................................................................... 8
Types of electronic banking: ..................................................................................................................... 9
Financial performance: ........................................................................................................................... 10
Measures of financial performance: ....................................................................................................... 10
ROA: ........................................................................................................................................................ 10
ROE:............................................................................................................................................................. 11
Methodology............................................................................................................................................... 11
Research Design: ..................................................................................................................................... 11
Questionnaire: ........................................................................................................................................ 11
Timescale and Resources ............................................................................................................................ 12
References .................................................................................................................................................. 13

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Title:
(The Effect of Electronic Banking on Financial Performance
In Kurdistan International Bank)

Abstract:
Customers can easily conduct bank business via online banking from the
convenience and security of their own homes and personal computers.
Globalization has resulted from the transformation of old commercial
practices into digital and electronic ones thanks to information technology.
The banking industry has been forced to change from its traditional methods
due to the wave of electronic payment systems in the business environment,
such as: long lines for customers to be served, delays in the clearing house
while representatives of various banks waited to settle their debts, and
manual work that led to errors.

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Background:
E-banking\ The manual nature of banking activities prior to the development
of the modern banking system slowed delayed the settlement of transactions.
This manual method calls for humans to post transactions from one ledger to
another, and e-banking emerged as a result of technological advancements.
Although Iraq did not adopt electronic banking as quickly as Western nations
did, this idea has gained acceptance in the microfinance sector and is seen as
a way to achieve a competitive edge. Financial institutions are spending more
in supplying the consumers with new technologies like personal computer
(PC) banking, mobile banking, automated teller machines (ATM), electronic
money transfer, etc. due to the advent of e-banking. among others, credit
cards, bill payment online, account to account transfers, and online
statements. This type of banking is not seen as a replacement for physical
banking facilities, but rather as an additional delivery method for services.
Technology-based self-service has increased dramatically as a result of recent
technological advancements, as noted by Dabholkar, Bobbitt, and Lee in
2003. According to Steven, (2002),
Electronic banking refers to the delivery of a wide variety of value-added
goods and services to bank clients using electronic and communications
networks.
Financial performance\ is the measurement of a company's performance in
terms of money. The return on investment, return on assets, and value added
figures for the company represent these outcomes. In a broad sense, it relates
to the extent to which financial goals are being or have been achieved. It
fundamentally refers to the process of executing financial activity. As a result,
it is the process of evaluating the financial results of a company's policies and
activities. It typically assesses the firm's overall financial health over a certain
time period and may be used to compare similar companies. companies
within the same industry or to aggregately compare industries or sectors
(Noveu, 1981).

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Since technology has created new opportunities and possibilities for retail
banking, e-banking is thought to have a significant influence on the
performance of banks. Institutions have begun automating monotonous
processes as a result of the expansion of e-banking. It might lead to more
efficacy and efficiency, better time management, and improved controls. The
institutions have been able to control their overhead and operational costs as
a result, which bodes well for their potential future profitability.
E-banking has also helped the institution streamline its paperwork and
provide enough documentation for all of its data. In order to service the
growing number of clients, banks have continued to rely on reliable ICT
platforms rather than hiring a matching number of personnel, hence lowering
payroll costs. The ratio of client deposit accounts to staff, which rose from 60
in 1996 to 474 consumers in 2011, provides a good justification for this
(CBK, 2011).

Research Problem:
Most operations improvement and operations learning research has operated
under the core premise that technical advancement directly affects
performance improvement (Prince, 1999).
However, from the perspective of strategic management, financial institutions
should have robust mechanisms in place to deal with unforeseen catastrophes
that may maintain their operations while reducing the risks associated with
them through technological advancements.
The use of mobile phones and the internet are only a few examples of the
technological changes that have had an influence on how well financial
institutions work (Okiro & Ndungu, 2013).

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Research Question:
1. What’s the effect of electric banking on financial Performance
2. What’s the important having electronic banking system and how used
more widely.

Research Objective:
The main objective of this research is to evaluate and examine the Effect of
Electronic banking in financial performance.
To determine
To find out the importance of having an electronic bank and electronic system
and using it more widely in all banks and financial institutions, as well as
explaining the use of electronic banking and its importance in financial
performance.

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Literature review:
Electronic banking:
The term "electronic banking" refers to a type of banking where money is
exchanged electronically rather than through the exchange of cash, cheques,
or other paper-based documents. Financial entities like banks and credit
unions exchange money via transfers. They also happen between businesses,
such retailers, and financial institutions.

Challenger bank:
Small, recently founded retail banks known as "challenger banks" compete
directly with more established banks in the UK, sometimes by specializing in
markets that the "big four" banks neglect to service (Barclays, HSBC, Lloyds
Banking Group, and NatWest Group). Along with new entrants, several
challenger banks emerged as a result of divestitures from bigger banking
companies (TSB Bank from Lloyds Banking Group) or the wind-down of a
large bank that had failed (Virgin Money from Northern Rock).
Modern financial technology methods, such as online-only operations that
minimize the expenses and complications of traditional banking, let the banks
set themselves apart from the historical banks.

Nonbank electronic banking:


A nonbank bank is a business that provides some financial services, much like
a regular bank, but normally does not accept deposits.
A nonbank bank is a business that provides some financial services, much like
a regular bank, but normally does not accept deposits.
You can evaluate if nonbank banks are a better alternative to satisfy your
financial needs by knowing what they are and how they operate.

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Theories related to banking:
In this essay, Perry Mehrling, a professor of international political economy at
Boston University's Pardee School of Global Studies, examines three banking
theories that inform bank regulation and investigation. These are debt
intermediation theory, fractional reserve theory, and the theory of credit
creation.

Benefit of electronic banking:


The most popular method of banking right now for many customers is online
or electronic banking. The majority of banks and credit unions provide a wide
range of services and goods online. E-banking has been more widely used
and dependable thanks to secure transaction technologies and sound IT
standards.
1. Makes banking easier
The new practice of internet banking has had a good impact on all clients.
Now that most conventional chores are entirely automated, it is more
comfortable and simple. You can get all the services offered by neighborhood
banks on a single website. For example, it's simple to access your account
online. In addition to just logging into the account, you may also order bank
statements online.
2. Practicality
Customers may access their accounts using e-banking from anywhere. It is no
longer necessary to visit the banking institution in person. E-banking further
aids in the payment of utility bills. This reduces the requirement for extremely
long lines. Online shopping and bill paying are both possible while at home.
Additionally, bank websites are reachable at all times and from any location.

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3. Lowers operational costs
By lowering total operational costs, online banking has also helped the
banking industry. This is accomplished by completely automating tiresome
and repetitive processes. As more institutions continue to transition to
internet banking, fewer personnel will be required. This reduces the expense
of employing new employees significantly.
4. Improves effectiveness
Automation is a common component of electronic banking, which improves
time management, control, and efficiency. Since most transactions are now
completed electronically, less paper is needed. Banks have been helped by
this to accurately record all of their transactions and data.
E-banking is therefore a very useful instrument that is here to stay. The
populace is more productive and can complete transactions more rapidly
thanks to this, freeing up time for other activities.

Types of electronic banking:


E-banking has the capacity to offer a wide range of services. Automated teller
machines (ATMs), credit cards, debit cards, smart cards, electronic fund
transfer (EFT) systems, mobile banking, etc. are some of the widely used
services. Online banking transactions include account access.

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Financial performance:
What does "Financial Performance" mean. Financial performance is a gauge of
how well a company can utilise resources from its main line of business and
create income.

Measures of financial performance:


metrics of financial performance

1. Gross margin of profit The profitability ratio, which quantifies the


percentage of revenue generated after lowering the cost of products sold, is
what is meant by this term.
Two. Working capital

Three. Net profit margin


4. The Quick Ratio
5. Current ratio

ROA:
A financial ratio known as return on assets (ROA) measures a company's
profitability in relation to its total assets. ROA may be used by corporate
management, analysts, and investors to assess how well a firm uses its
resources to make a profit.
The metric is frequently represented as a percentage using the net income
and average assets of a corporation. A company's ability to manage its
balance sheet to produce profits is more effective and efficient when its ROA
is higher; on the other hand, a lower ROA suggests there is potential for
development.

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ROE:
A metric of financial performance known as return on equity (ROE) is obtained
by dividing net income by shareholders' equity. ROE is referred to as the
return on net assets since shareholders' equity is determined by subtracting a
company's debt from its assets.
ROE is regarded as a barometer of a company's profitability and how well it
produces profits. The management of a firm is more effective at producing
income and growth from its equity funding the higher the ROE.

Methodology
Research Design:
Both quantitative and qualitative research design methodologies, as well as
data gathering, were employed in the study. A descriptive study survey was
used to help researchers get data by helping them organize it and obtaining
both quantitative and qualitative data.
from the populace and explain the occurrences that are accessible as they did
by questioning people.

Questionnaire:
The purpose of the study was to learn more about how Kurdistan Bank's
microfinance department's organizational performance was impacted by E-
Banking, which is the method by which a consumer can conduct bank
transactions electronically without physically visiting a physical location. This
information is used with complete confidence and is exclusively intended for
academic reasons. We kindly respond to queries by writing a brief remark or
checking the appropriate boxes.

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Timescale and Resources
The Timescale, I expect it will take a week to collect my data. When all data is
collected then the research will continue like these process below: January-
March 2022: review of literature, draft literature review and agree research
strategy. April-2022: final collection of questionnaires and analysis the data.
May-2022: final written of project report. About resources I have access to
software and hardcopy and access those to collect data as a questionnaire
from those people who worked under my research and about finance my dad
pay incidental costs as part of my course expenses.

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References:

Lee, E., P.A. Dabholkar, and L.M. Bobbit (2003). Recognizing customer motivation
and self-scanning behavior in retail. 14(1):59-95 Journal of Service Industry
Management International.

Perceived utility, perceived ease of use, and user adoption of information


technology were discussed by F. D. Davis in 1989.
P.J. DiMaggio and W.W. Powell (1983). Institutional isomorphism and collective
reason in organizational fields: The Iron Cage revisited. 147–160 in American
Review,

Hernando and M.J. Nieto (2006). Is the performance of banks changing as a result
of Internet delivery? The Spanish Banks Case (September 14, 2006).

N. Kingoo (2011). financial performance are related. MBA thesis, University of


Nairobi, unpublished

Mayo, H.B. (2007). Basic finance offers an introduction to financial institutions,


investments, and management. Cincinnati, Ohio-based Thomson South-Western
Publishing Co.
Ombati, T.O., Nyamwange, S.O., Magutu, P.O., and Nyaoga, R.B. (2010).
Technology and banking service quality: The significance and effectiveness of many
aspects taken into account in electronic banking services. Journal of African

A. Steven (2002). Information systems serve as the e-business foundation. Prentice-


Hall Inc., New Jersey

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