Digital Banking and Fintech N1623

2024/2025

Post Project:

Digital Banking Business Report: A comprehensive analysis of a selected bank’soperations, focusing on strategic aspects, industry trends, and competitive landscape. Utilizing the CAMELS framework, we will conduct a thorough evaluation of the bank's capital adequacy, asset quality, management efficiency, earnings, liquidity, and sensitivity to market risk.

Bank Selection and Consistency:

Students are required to select a single bank and competitor for in-depth analysis. This bank  and competitor will be the subject of both the business report. This ensures thematic coherence and allows for deeper, more nuanced analysis across both components. The total word count is 2000 word ( +/-10%) excluding Appendix, Figures and Tables.

The business report and video should exhibit a clear and logical connection. Ensure  that  insights from the business report inform and enrich the analysis presented in the video. For example, findings about the selected bank's overall digital strategy in the report could be used to contextualize the specific mobile banking features and  embedded technology solutions discussed.

The availability of financial data for last five years (balance sheet, income statements, annual reports) from Bloomberg Database. The document must be written in Harvard Style.

Competitor Selection:

Once you've chosen your primary bank, select a suitable competitor for comparison. Ensure the competitor offers comparable mobile banking services and integrates AI in similar ways. Consider:

-     Banks of similar size and market segment (RV function, or Fame/Orbis peer analysis or Statista)

-     Banks recognized for AI solutions for banking operations/ products (Bloomberg Terminal -Function CN, DES, DS)

-     Banks operating in the same geographical region (Bloomberg Terminal -Function RV, DES)

Data Sources

To be able to process this report, student need to use Bloomberg Databases or Annual Report

Other valuable sources of information:

-     Read through Directors' report (Bloomberg Terminal -Function CN, DES, FA, DS)

-     Read through other reports in front of Statutory accounts

-     Read any articles on the company in the financial press

-     Web (Google, Bing, FT etc...) search of a company for comments by market analysts

-     Sussex Online Databases (Orbis, Statista, Fame)

-     Teaching references and resources.

Time management

The earlier you start the project, the better. The lectures and seminars are designed to help you work on your project. The best approach would be to meet up weekly and apply the knowledge gained from the classes to advance your assignment. For each seminar, you will have the opportunity to ask questions regarding your project during the last 10 minutes at the end of the workshop. This skill is related to how to create a project schedule. The only way to achieve the project’s goals within the given timeframe that has been decided on is to breakdown the goals into tasks on a timeline. You are required to set up a realistic schedule and then manage the resources needed to keep on track so that the project can be successfully concluded on time. You might use an online Gantt Chart.

Risk management

Any project is inherent with risk. It is essential to become familiar with these issues before they become problems. Different problems can arise, such as other assignments, lack of access to the database, the crash of computer systems etc... It is essential to keep track of different documents and other vital issues

Attend Lectures and Seminars: These sessions will provide crucial details about each task and the expected outcomes. Active participation is essential to ensure a comprehensive understanding of the material. Please do not hesitate to ask clarifying questions during these sessions.

Digital Banking Business Report

This comprehensive report undertakes a deep dive into the banking operations of chosen bank, assessing its digital strategic direction, performance within industry trends, and competitive landscape.  Utilizing the CAMELS framework, we will conduct a thorough evaluation of the bank's  capital adequacy, asset quality, management efficiency, earnings, liquidity, and sensitivity to market risk. In this report, students should evaluate the financial and risk position and then look at how the economic situation affected the bank strategy.

General points for this report

The general points areas follows:

- Do not ramble or waffle

- One point per sentence

- Keep to simple sentences

- Check spelling and grammar.

Required Format

- Header: Bank name

- Footer: date, page numbers

- Wide margin on the left so report can be easily read when bound/filed

- Every student must submit one for selected approved bank

Size of this section

- Unlikely to be as big as the section on analytical review

- Quality needed, not quantity

- Marks for showing you understand the implications of financial ratios.

Key Areas of Exploration:

Strategic Analysis: Examining the bank's banking strategy, including its vision, mission, goals, and key initiatives, especially in the context of digital banking strategy.

Competitive Landscape: Identifying and evaluating the main competitor in the banking space.

CAMELS Analysis: Employing the CAMELS framework to comprehensively assess the bank's capital adequacy, asset quality, management efficiency, earnings, liquidity, and sensitivity to market risk. Analysing the bank's financial performance in the context of its digital banking operations, focusing on key metrics like user adoption, transaction volume, and revenue generated.

Risk Analysis: Analysing the bank's risk e in the context of its banking operation, especially in the context of the usage of technology

Digital Banking Strategy: Embracing Embedded Technology and Product Innovation

This strategy outlines our commitment to leveraging embedded technology and fostering aculture of innovation to deliver exceptional digital banking experiences.

Analyze a specific bank's digital innovations and embodied technologies over the past  five years, comparing them to competitors. Base your analysis on the IMF's "Evolution of Finanscape" and their work on major technology transformation services (Lecture and course references). Evaluate how these investments impact the bank's financial ratios, performance, and strategy. Consider the bank's stated digital banking strategy  (e.g., "Embracing Embedded Technology and Product Innovation") and analyse its actual implementations and performance against this strategy.

Report Aim:

This report aims to provide a comprehensive and insightful analysis of banks' operations, offering valuable information for investors, industry professionals, and consumers alike. By understanding the bank's strategic direction, its position within the evolving landscape, and its performance relative to competitors, the report seeks to shed light on its future prospects and potential challenges in the digital banking arena.

The report structure.

This report is required to have the following sections:

1.   Introduction: A description of the selected bank (100 words)

2.   Bank performance analysis (600 words)

3.   Bank Risk analysis (600 words)

4.   Bank strategy and Innovations (600 words)

5.   Conclusion (100 words)

- The bank to be analysed must be approved by the lecturer before submission. Include the approval email as part of your submission.

-Include Bibliography at the end of your report

-Include a list of all appendices at the end of your report

-The report, including all data, figures, and calculations, should be submitted as Excel files.

The report content.

Title Page

The title page must include:

-     University of Sussex

-     Module Name and Module Code

-      Bank Name

-     Student candidate number

1. Introduction

A summary of any relevant information as follows:

Geographical location/s

Products/Services (in tables or graphs)

Direct competitor (Peer Analysis)

Bank structures (for example, Personal banking, Business Banking etc. as in tables or graphs)

2. Bank Performance Analysis Analytical review

- Historical review as a comparison to the competitor

- Trend analysis of required ratios over the last five years

- Define strengths and weaknesses to detect in the bank’s performance

- Interpretation of bank position with respect to competitor

- Generation using Bloomberg's built-in functions

- Summary Table of ratios in Appendix

Interpretation of ratios Group into categories

-     CAMELS rating analysis

-      Efficiency Ratio

Those are the two basic types of analyses - most used, as each can be used for some financial companies. It is the main ratio that students must discuss in their report.

3. Bank Risk Analysis Analytical review

- Historical review as a comparison to competitor

- Trend analysis of the required ratios over the last five years

- Interpretation of bank position with respect to competitor -Define strengths and weaknesses to detect in bank’s risk

- Generated using Bloomberg's built-in functions -Summary Table of ratios in Appendix

Interpretation of ratios Group into categories:

-     Overall Risk

-      Liquidity Risk

-     Credit Risk

-     Off-Balance Sheet risk

-     Capital Risk

3. Bank strategy and Innovations

Analyze the digital innovations and embodied technologies implemented by a specific bank over the past five years, comparing them to its competitors. This analysis must be grounded in the frameworks presented in the lecture, specifically referencing the IMF's "Evolution of Finanscape" and the IMF's work on major technology transformation services (as detailed in  Lecture 5,6,8,9 and the course reference list).  Furthermore, analyze how these investments in new technologies and innovations have impacted the bank's key financial ratios, overall performance, and strategic direction.

4. Conclusion

-     The conclusion must be drawn from the evidence in your report

-     Must refer to your workings and your conclusions

-     All conclusions must be based on facts

Bibliography

- Must reference all sources

- Web pages must include the date of a hit as well as the web address

- Press must include the date of publication as well as the writer

- References can be presented in Harvard style