MINI PROJECT

ON

“THE STUDY OF FINANCE INDUSTRY”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

MBA 1ST SEM

SECTION- A

STUDENT ID - 0124070

BATCH (2024-2026)

SUBMITTED BY: SUBMITTED TO:

Lakshit Mittal Mr. Anuj Sheopuri

HARLAL INSTITUTION OF MANAGEMENT AND TECHNOLOGY

Greater Noida, Uttar Pradesh, 201310

1
 DECLARATION

The Mini project on "THE STUDY OF FINANCE INDUSTRY" has been

undertaken as a partial fulfilment of the requirement for the award of the degree
of Master of Business Administration of Dr. AKTU. Lucknow. I hereby declare
that this Project is my original work and the analysis and findings are for
academic purposes only. This project has not been submitted by the any student
earlier to any other institution/ university.

LAKSHIT MITTAL

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 CERTIFICATE

This is to certify that LAKSHIT MITTAL has undertaken this project report
work entitled “THE STUDY OF FINANCE INDUSTRY”. For the partial
fulfilment of the award of Master of Business Administration degree from
HIMT, Greater Noida.

As per best of my knowledge this project report work is an original piece of

work and has not been submitted or published elsewhere.

DR. ANUJ SHEOPURI

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 ACKNOWLEDGEMENT

This mini project is the outcome of sincere efforts, hard work and constant
guidance of not only me but a number of individuals. First and foremost, I
would like to thank HIMT, GREATER NOIDA for giving me the platform to
work with such a prestigious company in the financial sector. I am thankful to
my faculty guide Mr. Anuj Sheopuri for providing me help and support
throughout the Project Report period.

I owe a debt of gratitude to my faculty guide who not only gave me valuable
inputs about the industry but was a continuous source of inspiration during these
months, without whom this Project was never such a great success.

Last but not the least I would like to thank all my faculty members, friends and
family members who have helped me directly or indirectly in the completion of
the project.

LAKSHIT MITTAL

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 INDEX

S.NO PARTICULARS PAGE NO

1 INTRODUCTION 6-9

2 LATEST TECHNOLOGY USED IN FINANCE 10-16

SECTOR’S
3 CURRENT INDUSTRY TRENDS 17

4 FUNCTIONS OF THE FINANCIAL SECTORS 18-20

5 UNION BUDGET 2024-25: ANALYSIS OF MAJOR 21-26

DEMANDS
6 UPCOMING TECHNOLOGICAL 27-30

ADVANCEMENTS IN FINANCE SECTOR

7 SWOT ANALYSIS 31-33

8 CHALLENGES FACED 34

9 CONCLUSION 35

10 REFERENCES 36

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 INTRODUCTION

You might think of banks, brokers and mortgage lenders as all entirely separate
entities. While they do provide different services, they're all part of the financial
services industry. In fact, the industry includes more than those three sectors. It
also involves insurance companies, securities traders, investors, financial
advisors, Wall Street and more.

Plus, the financial services industry doesn't just serve individuals like yourself.
It also provides small businesses, large companies, non-profits and even the
government with the necessary financial services.

As the banks recognize this skill gap that stops them from transforming to meet
the potential presented by technology - they are beginning to invest significant
amounts into banking technologies they seem most relevant for their business
models. For example, blockchain might not be a priority for most industries
today, but banks and financial institutes foresee a great advantage in
implementing these. Therefore, the financial services industry as a whole sees
them as a high priority investment.

Further, the evolution of the finance industry makes it imperative that

technology becomes a "core competency" with enterprise-wide engagement.
The technology focus cannot be limited to the top alone, or even to an I
department cut off from the rest of the operations. Finally, the focus of
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technology implementation must be customer experience - and not revenue or
cost savings. Those are important but will come automatically if you can retain
customers in the years to come. In the years to come, bankers will have look at
FinTech startups as partners rather than competitors.

Remember that a bank can be the biggest customer for a FinTech company and
can help them reach a newer customer base.

This is where developing a banking platform will come in handy and result in
better customer satisfaction. Bankers should work towards new business models
where they own the customer relationships and pull together FinTech resources
from around the globe to generate the most value for the end customer.

Services Offered in the Financial Services Industry

There are four main types of services that are offered throughout the financial
services industry that makes up the professional firms discussed above. Most
people will need help with at least a majority of these service areas throughout
their lifetime, especially if they don't work in the financial services industry
themselves. Each type of service requires different knowledge and abilities, as
outlined below.

Banking Services:

Banking services involve holding your money or helping you qualify for a loan
that you can borrow for a specific purpose. Most people use a bank to hold their
money in an FDIC-insured account so that they don't have to worry about

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finding their money or protecting it themselves. With the advancement of online
technology, banking services like these are the best way to receive payment
from your employer and to pay others from things like your electricity bill to
paying back a friend for lunch.

Most financial institutions that offer banking services provide ways for you to
qualify to borrow money. The purpose of these lending opportunities ranges
from getting a mortgage for your home to buying a car or getting a loan to
upgrade your home. This can be the best way for people to qualify to buy their
own homes and build some wealth through real estate.

Investment Services

Some people try to go at it on their own when it comes to setting up investment

brokerage accounts and deciding what they should be invested in. Everyone has
a unique set of financial goals that could require different types of investments
and most people aren't experts at how to buy and hold things like stocks.

Many others don't realize how things like money market accounts could be
beneficial or when to invest in ETF's.

This is why so many people choose to work with a financial advisor or

investment manager to help them determine the right asset allocation for the
management of their portfolio. These investment services can help people
prepare for retirement, save for their child's college or just help figure out how
to make their money go further.

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Tax and Accounting Services:

Everyone has to pay taxes and the government has never done a great job of
making it easy. This is where tax professionals come in to help you understand
what the tax laws are, what you owe and perhaps how you can save on taxes
through rules and actions you didn't know you should be taking.

Accounting professionals provide services that can help keep your personal
finances in order but they can also help small businesses keep proper accounting
records that are required by law. Proper accounting services led to more
accurate taxes.

Insurance Services:

Insurance has become one of the most important pieces of the financial services
industry because it protects assets from death, injury or wrongdoing.
Professionals can help you get life insurance to take care of your loved ones in
the event something happens to you but they can also help you insure your
house, or car or even help you get access to better healthcare.

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 Latest Technology used in Finance Sector's
Innovation in the financial services sector is not essential, although it is
necessary.

Technologies are key drivers of the entire market and the industry is booming
(see Fig.1).

Figure 1. Fintech market growth projects

Yet, to understand which particular tech needs to be implemented, it is crucial to

have a clear idea of what instruments are available to financial institutions.
Without further ado, let's proceed to the 10 FinTech trends gaining traction in
2023.

2.1 Agile and adaptive banking

2,2 Artificial Intelligence (Al) and Machine Learning (ML)

2.3 Buy Now Pay Later (BNPL) 2.0

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2.4 Distributed Ledger Technology (DLT)

AGILE AND ADAPTIVE BANKING

For the financial sector to be agile, it means being competitive while also
capable of launching new products at great speed and efficiency. Financial
firms, financial institutions, commercial banks, and insurance businesses who
stay flexible and nimble are the ones that will stay afloat. Gartner Research
indicates that by 2030 about 80% of the traditional financial institutions will
cease to exist.

Moreover, the Agile banking academic study by the Journal of Business

Economics indicates that about 77% of banks and 44% of FinTech firms intend
to improve their financial services by adopting Agile methods. Yet, why do all
these financial institutions consider the Agile methodology a saviour?

The answer is simple. This approach focuses on a product-centric model that

allows them to face some critical challenges in their industry. These are the
obstacles that Agile and adaptive banking overcomes:

 Unforeseen risks linked to the rise of finance-related criminal activities

online.
 Pressure connected with the many amendments to legislation and rules,
making compliance extremely challenging
 Lack of remote access when performing regulatory reviews.
 A general overload of new requests within loan and financial planning
services segments.

With Agile and adaptive banking, you get flexibility and simplification in one
package. If additional insights are needed, there is a knowledge base from
Oracle available.

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ARTIFICIAL INTELLIGENCE (AI) AND MACHINE
LEARNING (ML)

In the tech world, AI and ML are two words that are used as often as cutting-
edge and innovative. It could be suggested that Al in the FinTech market is the
fastest-growing sector.

Why is that? Perhaps, just one simple fact would suffice: it is estimated that Al
chatbots used in banking save about 826,000,000 work hours. Furthermore,
there is a 104% global increase in people searching for "Al in banking." Now,
let's see why Al and ML are good for banking. In short, the application of both
technologies goes way beyond mere automation. It brings much more:

• Increased productivity and better operational efficiency. Al and ML help to

monitor, check the quality, and process vast amounts of financial data in a
fraction of the time.

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  Enhanced personalization in service provision. Al and ML can assess
their clients' personal identifiable information in order to improve
financial services, credit card services, mobile services, cloud services,
and money management.
 The emergence of new products and services. Al and ML help financial
institutions bring forward new products while tapping into new business
models.

It is no secret that data is the most valuable commodity at the moment. Al and
ML are technologies that help make use of data better than traditional methods.
This is what makes these financial services trends so valuable in 2023 and the
years to come.

BUY NOW AND PAY LATER (BNPL) 2.0

While the credit system has existed for decades, the ability to purchase
something by splitting the purchase into interest-free instalments is still new. In
traditional terms, BNPL was most often used for high-value items. Currently,
the phenomenon is spreading to other categories of goods and entering new
industries, including finance.

This second version of BNPL allows customers to make online purchases with
virtual and physical credit cards. Simply put, the system will work as an
ordinary credit card service with the key difference being that you can
deconstruct almost any purchase into installment-free payments. Tech giants
like Apple have recognized this trend and already are reaping the benefits.

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Taking this into account, BNPL 2.0 is expected to be a great customer
engagement opportunity. It will create a more seamless purchasing experience
and decrease the card abandonment rate. However, you still need to remember
that the BNPL phenomenon is under scrutiny now. Namely, regulatory bodies
are trying to make it bulletproof in regards to data security and potential
financial crimes.

DISTRIBUTED LEDGER TECHNOLOGY

Businesses operating in the financial sector are constantly looking for agile and
innovative methodologies because their legacy systems are creating too many
complexities. For instance, these old systems come with a lack of transparency,
fragmented wealth management, and siloed operations. Because of this, FinTech
firms are experimenting with various Web 3.0 technologies in order to face the

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challenges noted above. And, DLT is one of the prospective candidates (see
Fig.) being used.

In a nutshell, DLT presents some solid benefits in the financial sector,

particularly capital markets. The advantages are linked to the following:

1. Collateral management: DLT helps businesses tap into unused assets

while also reducing operational overheads. This is done by automating
both initial and variation margin flow.
2. Trust issues: Parties involved in financial operations often have a
competing business interest. which is why establishing trust is vital. DLT
helps give each party an independent node providing equal data access
and efficient consensus protocol rise.
3. Inefficiency: When there is no single data source, various operational
risks, manual verification processes, and multiple reconciliations appear.
DLT offers real-time confirmation and settlement through smart
contracts.
4. Democratization: DLT brings democratic access to data, information,
and assets making all parties equal in the context of the financial
operations conducted.

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At this point, as a distinct Web 3.0 technology, DLT is revolutionizing capital
markets and asset management. It grants equal access to data, as well as helping
the parties involved to put customer's interests in front of their competitive
desires.

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 Current Industry Trends
Trends financing teaser as a variety of models for cooperation and integration
among finance industries have emerged, some of the traditional distinctions
between banks, insurance companies, and securities firms are fast diminishing.
In spite of all these developments, banks continue to maintain and perform their
primary role-accepting deposits and lending funds from these deposits. During
recent times, technological advances have enabled banks to extend their reach
globally, and there is no longer a need for customers to visit bank branches for
every transaction, as most of the transactions can happen online.

The growth in cross-border activities has also increased the demand for banks
that can provide various services across borders to different nationalities.
Despite these advances in cross-border activities, the banking industry is
nowhere near as globalized as some other industries. There is no doubt that
"Technology" is going to be a catalyst in that growth, creating huge
opportunities for professionals with a good understanding of the banking
industry sectors.

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 Functions of the Financial Sector
There are different functions that the financial markets perform, which includes
determination of the prices where financial markets help in price discovery of
various financial instruments, mobilization of the funds, providing an
opportunity to different investors to buy or sell their respective financial
instrument at the fair value that is prevailing in the market, providing the
various types of information to traders, and the sharing of the risk, etc.

1) Price Determination: The financial market performs the function of

price discovery of the different financial instruments traded between the
buyers and the sellers on the financial market. The prices at which the
financial instruments trade in the financial market are determined by the
market forces, i.e., demand and supply. So, the financial market provides
the vehicle by which the prices are set for both financial assets which are
issued newly and for the existing stock of the financial assets.

2) Funds Optimization: Along with determining the prices at which the

financial instruments trade in the financial market, the required return out
of the funds invested by the investor is also determined by participants in
the financial market. The motivation for persons seeking the funds is
dependent on the required rate of return, which the investors demand.

3) Liquidity: The liquidity function of the financial market provides an

opportunity for the investors to sell their financial instruments at their fair
value prevailing in the market at any time during the working hours of the
market. In case there is no liquidity function of the financial market. The

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 investor forcefully has to hold the financial securities or the financial
instrument until the conditions arise in the market to sell those assets or
the issuer of the security is obligated contractually to pay for the same,
i.e., at the time of maturity in debt instrument or at the time of the
liquidation of the company in case of the equity instrument is until the
company is either voluntarily or involuntarily liquidated. Thus, investors
can sell their securities readily and convert them into cash in the financial
market, thereby providing liquidity.

4) Risk Sharing: The financial market performs the function of risk-sharing

as the person who is undertaking the investments is different from the
persons who are investing their fund in those investments. With the help
of the financial market, the risk is transferred from the person who
undertakes the investments to those who provide the funds for making
those investments.

5) Easy Access: The industries require the investors to raise funds, and the
investors require the industries to invest their money and cam the returns
from them. So, the financial market platform provides the potential buyer
and seller easily, which helps them save their time and money in finding
the potential buyer and seller.

6) Capital Formation: Financial markets provide the channel through

which the new investors' savings flow in the country, which aids in the
country's capital formation.

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 7) Reduction in Transportation Costs and Provision of the Information:
The trader requires various types of information while doing the
transaction of buying and selling the securities. For obtaining the same
time and money is required. But the financial market helps provide every
type of information to the traders without the requirement of spending
any money by them. In this way, the financial market reduces the cost of
the transactions.

Example:

Let's consider an example of the company XYZ Itd, which requires the funds to
start a new project, but at present, it doesn't have such funds. On the other hand,
some investors have spare money and want to invest in areas where they can get
the required rate of expected returns. So, in that case, the financial market will
function where the company can raise funds from the investors, and the
investors can invest their money through the help of the financial market.

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 Union Budget 2024-25: Analysis of Major
Demands
Introduction

The Union Budget 2024-25, presented by the finance minister, outlines the
Indian government's financial plan for the fiscal year, focusing on economic
growth, social welfare, and infrastructure development. The total budgetary
expenditure for the year has been set at ₹48.21 lakh crore, reflecting an
increase over the previous year’s allocation. The budget aims to support key
sectors such as defense, infrastructure, agriculture, healthcare, education, and
social welfare while ensuring fiscal stability.

The budget has been structured to prioritize capital expenditure, enhance

employment generation, and improve social welfare schemes. With a projected
fiscal deficit target of 5.1% of GDP, the government is committed to ensuring
fiscal discipline while facilitating economic growth. The budget also addresses
inflation control and measures for improving ease of doing business in India.

The Highlights of expenditure of various ministry/department include the

following: -

Ministry of Defence

The Ministry of Defence has received ₹6.21 lakh crore, making it one of the
highest-funded ministries. A substantial portion of this amount is allocated to

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the modernization of the armed forces, procurement of advanced weaponry, and
enhancement of defense infrastructure. The capital outlay for defense has been
increased to ₹1.80 lakh crore, ensuring the development of indigenous defense
manufacturing under the Atmanirbhar Bharat initiative.

Additionally, funds have been allocated to research and development in defense

technology, strengthening border security, and upgrading defense training
institutions. The budget also includes expenditure for veterans' welfare,
including pension schemes for retired military personnel.

Ministry of Road Transport and Highways

The government has allocated ₹2.70 lakh crore to the Ministry of Road
Transport and Highways, emphasizing the expansion and maintenance of
national highways and expressways. This investment aims to improve
connectivity, reduce transportation costs, and boost economic growth by
facilitating trade and commerce.

Several key projects under the Bharatmala and Gati Shakti initiatives will be
undertaken to enhance road infrastructure. The government plans to construct
new expressways, repair damaged roads, and improve road safety measures.
Additionally, funds are allocated for the development of electric vehicle
infrastructure, including charging stations along highways to promote
sustainable transport.

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Ministry of Railways

With an allocation of ₹2.40 lakh crore, the Ministry of Railways is set to focus
on modernization, high-speed rail projects, and infrastructure enhancement. The
budget includes funds for electrification of railway tracks, introduction of new
Vande Bharat trains, and upgrading passenger safety measures.

Investment in logistics and freight corridors will also help in improving

efficiency and reducing logistics costs. The Dedicated Freight Corridor (DFC)
project is expected to enhance cargo movement, reducing dependency on road
transport. Additionally, railway station redevelopment projects have been
prioritized to enhance passenger experience, providing better facilities and
seamless connectivity.

Ministry of Agriculture and Farmers Welfare

Agriculture continues to be a priority sector, with ₹1.50 lakh crore allocated to

the Ministry of Agriculture and Farmers Welfare. The government aims to
strengthen schemes like PM-KISAN, which provides direct income support to
farmers.

Additionally, the budget focuses on irrigation projects, organic farming,

precision agriculture, and research in sustainable farming practices. The
government has allocated funds to improve rural cold storage infrastructure to
reduce post-harvest losses and support farmers' incomes. Expansion of
agricultural credit and subsidies for fertilizers and seeds are also part of the
budget’s key priorities.

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Ministry of Health and Family Welfare

To strengthen the healthcare sector, ₹1.20 lakh crore has been allocated to the
Ministry of Health and Family Welfare. The focus remains on enhancing
healthcare infrastructure, expanding the Ayushman Bharat health insurance
scheme, and improving rural health facilities.

The budget addresses the need for increased funding for research and
development in the medical sector, particularly in pandemic preparedness,
vaccine production, and genome sequencing technologies. There is also an
emphasis on improving maternal and child healthcare services, strengthening
the digital health ecosystem, and expanding telemedicine services to remote
areas.

Ministry of Education

Education receives a boost with ₹1.10 lakh crore allocated for the Ministry of
Education. The budget emphasizes the implementation of the National
Education Policy (NEP), digital learning initiatives, and skill development
programs.

Special attention has been given to expanding access to higher education,

vocational training programs, and research institutions. Funding has been
allocated for the establishment of new central universities, increased
scholarships for economically weaker students, and enhancement of teacher
training programs. Additionally, funds are dedicated to modernizing school
infrastructure and integrating artificial intelligence into the curriculum.

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Ministry of Rural Development

With an allocation of ₹1.30 lakh crore, the Ministry of Rural Development will
focus on employment generation and infrastructure development in rural areas.
A major portion of the budget will be utilized for schemes such as MGNREGA
(Mahatma Gandhi National Rural Employment Guarantee Act), rural
housing, and sanitation programs under the Swachh Bharat Mission.

The budget also prioritizes the construction of rural roads, bridges, and
electrification of villages to ensure holistic rural development. Funds have been
allocated for skill development programs for rural youth, aiming to boost
employment opportunities in rural areas.

Ministry of New and Renewable Energy

The government continues to promote sustainability by allocating ₹20,000

crore to the Ministry of New and Renewable Energy. The budget prioritizes
investments in solar and wind energy projects, green hydrogen production,
and research in clean energy technologies.

This funding aligns with India’s commitment to achieving net-zero carbon

emissions and reducing dependency on fossil fuels. Additionally, there is a
strong push for rooftop solar panel installations, smart grid development, and
policies promoting electric vehicle adoption.

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Conclusion

The Union Budget 2024-25 reflects the government's commitment to economic

growth, infrastructure expansion, and social welfare. By allocating significant
resources to defense, transport, healthcare, education, rural development,
and clean energy, the budget aims to create a balanced and inclusive economic
environment.

With a focus on self-reliance, digital transformation, sustainability, and job

creation, the budget paves the way for a resilient and prosperous India. While
balancing fiscal discipline with ambitious growth targets, this budget ensures
that every sector receives necessary attention to drive long-term economic
progress.

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 Upcoming technological advancements in the
industry

In the new What's Going on in the industry, the top five technologies are

1) Digital account opening;

2) P2P payments;
3) Video collaboration/ marketing,
4) Cloud computing; and
5) Application programming interfaces (APis).

1) Digital Account Opening

Digital accounting opening (DAO) is the most popular technology for the third
year in a row, with a third of banks and credit unions expecting to add new or
replacement systems in 2020. An additional 46% plan to modify or enhance
their existing DAA systems, up from the 39% who said they would do so in
2019.

The continued focus on digital account opening begs the question: Why can't
banks get digital account opening right? There are a number of reasons but the
primary cause is ineffective process design. Many banks approach the account
opening process from a regulatory compliance perspective. It actually takes
very little information to get an account open. Banks should redesign the
process to allow for the simplest account opening and funding possible-and then
work on reducing risk and meeting regulations.

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2) Person-to-Person (P2P) Payments

Roughly three in 10 institutions plan to select a new or replacement P2P

payment tool in 2020. That percentage is down from the 35% who planned to do
so in 2019. But the number of banks and credit unions looking to enhance or
modify their P2P payment capabilities rises from 25% in 2019 to 40% in 2020.

This is good news for Zelle.

According to a study from S&eP Global, Zelle is now the P2P payment provider
in 21 25 largest US banks with two more planning to launch Zelle, In the next
45 largest banks, 21 are Zelle banks, with two more coming on shortly.

If more banks and credit unions adopt Zelle- and then follow PNC's lead and
shut out Venmo by locking out Plaid consumers will increasingly find Zelle to
be the most convenient P2P payment option to use, causing some switching
behaviour.

Consumers may not be thrilled about it—but it's hard to imagine that they'll
switch banks as a result of it.

3) Video Collaboration/Marketing

This technology is new to Cornerstone's study and enters the charts with a little
more than a quarter of survey respondents indicating that they plan to add video
collaboration/marketing tools in 2020.

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This would more than double the number of institutions deploying this
technology, as just one in five institutions say they've already implemented
video collaboration/ marketing platforms to date.

The rise of video collaboration/marketing into the top 5 was a long time
coming.

Vendors-and some analysts for that matter—have been hyping video for a while
now. One study found that more than three-quarters of bank execs surveyed said
that video technology:

1) accelerated decision making;

2) improved productivity;

3) boosted product innovation; and

4) improved the customer experience.

If that were true, why has it taken so long for banks to make investments in
video?

Because:

1) Nearly every technology promises the benefits listed above, and

2) It's taken this long for banks to get serious about branch transformation,
which is driving this uptick in video investment.

4) Cloud Computing

A quarter of financial institutions plan to invest in or implement cloud

computing technologies in 2020. Forty percent say they've already done so, and
half of them will enhance or modify what they've got.

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Despite these numbers, many C-level execs still oppose cloud computing. Cloud
proponents fail to sway the holdouts because their arguments run counter to the
holdouts' experiences— and you can't fight experience-based perceptions with
theory.

5) APIS

One in four community-based financial institutions plan to invest in or deploy

APis in 2020, on top of the 35% that have already done so.

What are they hoping to accomplish? Back in 2015, I wrote the following:
"APIs will become central to the competitive dynamics of the industry. Banks
must rapidly assess fintech's' offerings, integrate them, and deploy them to their
customer base." APis are about speed, agility, and personalization. You're dead
in the water if: 1) It takes nine to 12 months to integrate partners' products
and/or data, or 2) The partnership process requires significant time and
resources to negotiate legal matters, revenue sharing, pricing, etc.

30
 SWOT Analvsis

Financial SWOT analysis is a business analysis tool shot helps to identify the
financial Strengths, Weaknesses, Opportunities, and Threats of an organization.
It's an adaptation of SWOT analysis --- which analyses those same traits without
a financial focus - commonly used in financial planning.

Let's look at the four areas of SWOT analysis in depth:

 Strengths: These are things that play to a business' benefit. In the case of
financial SWOT analysis, this may include large cash reserves or positive
monthly cash flow.
 Weaknesses: These are things that play to a business' detriment. For
financial SWOT analysis, examples include lots of debt or negative
monthly cash flow.
 Opportunities: These are things which could benefit the business, but do
not currently. Financial examples include possible cash investments or
new revenue streams.
 Threats: These are things which could disadvantage the business, but do
not currently. Examples of financial SWOT analysis include non-paying
customers or interest rate hikes.

Financial SWOT analysis is designed to give an overall picture of an

organization's current and potential financial standings. It helps to understand
how an organization is faring financially at present (thanks to the Strengths and
Weaknesses identified), and offers insight into potential events that might
dramatically change its finances (the Opportunities and Threats). This can help
31
an organization to plan both financially in accordance to international tax laws,
by knowing what revenues and expenses to expect, and strategically, in knowing
how to pivot to optimize its financial standings.

When to Use Financial SWOT Analysis

Like other business analysis tools, financial SWOT analysis can be used at any
stage fore or during a business venture. For example, companies mat a canaries
SWOT analysis to evaluate a new business opportunity, with the goal of
identifying what the associated benefits and risks are from a financial
perspective. On the other hand, companies could use financial SWOT analysis
to evaluate their current financial standings and any eminent Opportunities and
Threats, so as to optimize their business plan for the future.

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Piecing Together the Puzzle

Once you've identified the factors that could affect the business, it's time to
compile, and subsequently interpret the SWOT analysis. In compiling a SWOT
analysis, review the Strengths, Weaknesses, Opportunities, and Threats
identified and ensure they are sufficiently significant. It's impossible to cover
everything in a single analysis, so aim to focus on the most important issues.

After laying out and reviewing factors from these four areas, decide whether a
report is necessary. If the SWOT analysis is to be shared with others, it may be
worth compiling all the findings into a single document. If not, whatever notes
made will be sufficient.

Finally, begin interpreting the SWOT analysis in order to develop actionable

strategies. For example, look at the Strengths identified and determine whether
additional work is necessary to maintain them. Then, consider how any
Weaknesses might be resolved or worked around. Similarly, look at how
Opportunities can be grasped and Threats avoided.

While SWOT analysis is useful in its own right — as a framework to identify

current standings and potential future scenarios — its true value is in enabling
you to find these actionable insights. As a result, conduct a SWOT analysis, but
be sure to leave adequate time to pick out these insights and create actionable
strategies. Knowing certainly is half the battle, but acting on that knowledge is
the crucial second half!

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 Challenges Faced

They say buying an elephant is easier than owning it and this line fits perfectly
well in Finance Sectors. The financing industry is undergoing a radical shift,
one driven by new competition from FinTech's, changing business models,
mounting regulation and compliance pressures, and disruptive technologies.

The emergence of FinTech/non-bank startups is changing the competitive

landscape in financial services, forcing traditional institutions to rethink the way
they do business. As data breaches become prevalent and privacy concerns
intensify, regulatory and compliance requirements become more restrictive as a
result. And, if all of that wasn't enough, customer demands are evolving as
consumers seek round-the-clock personalized service.

These and other banking industry challenges can be resolved by the very
technology that's caused this disruption, but the transition from legacy systems
to innovative solutions hasn’t always been an easy one. That said, banks and
credit unions need to embrace digital transformation if they wish to not only
survive but thrive in the current landscape. These are few main challenges faced
by the financing Industry—

Increasing Competition. ...

A Cultural Shift. ...

Regulatory Compliance. ...

Changing Business Models. ...

Rising Expectations...
34
 Conclusion
The mobile and wireless market has been one of the fastest growing, markets in
the world. The arrival of technology and the escalating use of mobile and smart
phone devices, has given the financial industry a new platform. Connecting a
customer anytime and anywhere to their money and needs is a must have
service that has become an unstoppable necessity. This worldwide
communication is leading a new generation of strong banking relationships. The
financing world can achieve superior interactions with their public base if they
accommodate all their customer needs.

They have a unique challenge to keep their customer alliances and keeping up
with the new technologies, and competitive strategies that other banks also have
to offer the public. Conveniences of services plus outside locations like ATMS
are crucial to every bank's success. Meeting all challenges including safety and
security are perfect examples of good banking or financing strategies. In order
for the financial institutions to effectively grow they must embrace the new
technologies and customize them to suit their economic success and the public's
success. Online banking is certainly here to stay. Online banking is a necessity
for the bank's that we studied and others in order for them to stay in business.
While its existence doesn't necessary give them a competitive edge because it is
so common place, it is truly a cost of doing business. As a tool of modern living
and as a lifestyle aid, it is absolutely indispensable. The fact is that many
services that are now being offered with online banking are almost impossible
to do conveniently with regular financing.

As we venture into the future, the internet will undoubtedly continue to change
the financing industry.
35
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