Analysis to assess business growth opportunities for Padua Essay Example

Analysis to assess business growth opportunities for Padua

Analysis to assess business growth opportunities for Padua

Introduction

Fintech continues to fuel financial industry. The perception of business at risk continues to grow as well as the concern of potentially lost proceeds. Customers are increasingly conducting business with Fintech as a result traditional financial institutions are trying to join hands with Fintech in order to leverage the ecosystem the Fintech creates as well as using innovation to assuage concerns regarding risks associated with financial industry (Nicoletti, 2017). The emergence of Fintech has changed the manner in which companies conduct their businesses. However, the emergence of Fintech technology has led to increased competition in the financial industry. For instance, Fintech has come up with so many innovations; from crowd sourcing to mobile money transfers and this has resulted to cheaper and convenient way of conducting financial transactions (Susanne & Barberis, 2016). For instance, crowd sourcing enables individuals with big ideas to access funding fast and easily while anywhere globally and from virtual people. Due to emerging competition among many emerging Fintech companies as well as from already established and traditional financial institutions, getting market share within this industry has its challenges. Padua is one of the Fintech firms that provide financial advice technology solutions to organizations and people as well. Padua was set up in 2013 and it has fast developed into the leadingpara-planning provider of financial solutions (Dorfleitner et al, 2017). Padua combines financial advice with innovations and new technologies to offer financial solutions. In this regard, this project aims to analyze and assess business growth opportunities for Padua Company.

Industry Overview

Fintech is an industry that consists of companies that utilise new technology and innovations to participate within marketplace of traditional financial institutions and intermediaries in delivery of financial services (Stefan & Neumann, 2017). Padua is an independent and Australian Fintech company that develops Fintech solutions and innovations to support financial services divisions. Generally, finance is among the most vulnerable industries that are prone to software disruptions and hence there is need to come up with innovations and technologies that provide solutions to such disruptions in financial sector (Nicoletti , 2017).

Generally, Fintech companies normally face competition from established competitors as well as face doubts from financial regulators. For example, data security is an important subject that financial regulators have raised concerns due to the risk of hacking and also the need to have sensitive consumer and organizational financial data protected (Susanne & Barberis, 2016). In addition, there is a need to have multiple layers of protection that can assist in isolation and securing financial data. Data breach however insignificant can cause direct liability to a company and this indicates the high security risk associated with all financial institutions, including Fintech companies. This is the reason why leading international Fintech firms that are using cloud technology to meet progressively more strict compliance regulations. More importantly, apart from security and competition from established financial institutions, marketing is another challenge that most Fintech firms face because they are in most cases outspent by bigger and already established competitors (Susanne & Barberis, 2016).

Data Analysis & interpretations

Data will be collected from primary sources and secondary sources as well. Data will be collected using interviews and the in-depth interviews will be analyzed used different themes and theories. After the interpretation of the qualitative data, theories related to the study topic will developed and grouped in form of themes. Additionally, existing sources of data will also be used. This data will be used to support the primary data. In addition, during data analysis, the quantitative data will be entered into computer spread sheets and presented in form of charts and graphs for easier interpretation.

SWOT analysis

Strengths

. Melike, 2017)Considering Padua Company is a Fintech company using algorithm and technology based customized services to provide financial services to customers, Padua has a likelihood of continuing to grow (

Weaknesses

. Melike, 2017). In addition, there is also language barrier because applications used by Padua are in English and some rural people and uneducated people may not be able to use the application. In addition, there might be trust factor because people are used to traditional financial institutions and might not be comfortable with technologies that Padua Company uses in performing financial transactions (Melike, 2017)Since some people may not be having access to internet or mobile phones, this poses a challenge to Padua offering financial service to this population. For instance in Australia, rural population may not be able to access various value-added services (

Opportunity

. Dorfleitner et al, 2017)Inadequacy of financial services penetration within Australia, especially within rural settings presents enormous doors of opportunities for Padua, as a Fintech company. With a relatively high number of people unable to access basic financial services, there is an enormous opportunity for creating demand in all business sectors, including mobile payments, insurance and even microfinance. Fintech from Padua can assist in growing market substantially and wide-base by providing financial services to a broader target market. In addition, there are opportunities of Padua teaming up with established and traditional financial institutions to offer innovative and technology-based financial services (

. (Borsa, 2014) security issue present a constant threat to technology-based solutions and more importantly to financial industry. There have been cases of security violations as well as hacking of financial technology systems and this can turn individuals away from technology-based and internet based financial transactions. Security threat is the reason tech giants and other traditional financial institutions are pushing hard to combat security infringement issues in order to facilitate provision of better and improved financial services Melike (2017). According to(Melike, 2017)Padua is in Fintech industry and the major threat involves running out of innovative ideas. There are numerous players accessing the industry with similar, for example providing mobile wallets, carrier billings and such. The new players might not manage to attract investment because of shortage of disruptive ideas. In addition, there is a threat of security or privacy breach for Padua (

Porter’s five forces

Competition from rivals

Padua faces competition from other Fintech companies globally as well as from other traditional established financial institutions and multinational banking companies (Stefan & Neumann, 2017). Australia is among developed countries and there are many emerging Fintech organizations that pose big competition to Padua (Melike, 2017).

The Bargaining Power of Consumers

The bargaining power of customer is very predominant in this industry. However, individual customers have little bargaining power because they do not have great impact on Padua Company. However, corporate customers have significant bargaining power because the company cannot afford to suffer mass defections because corporate customers carry an enormous share of customers (Borsa, 2014).

Bargaining power of suppliers

Suppliers include the technology or those who provide business software to Padua. Supplies have significant bargaining power because their innovations and technology solely runs the operations of Padua Company (Melike, 2017).

Threat of substitute products

The Threat of New Entrants

Substitutes for Padua include firms that offer something that replaces banking services or traditional banking operations. Padua’s potential substitutes include firms that work with crypto-currencies or firms that provide wallet, cards, and mobile money transfers among others. Such substitute products pose a major threat to Padua (Nicoletti , 2017).

The threat of new entrants to the industry is comparatively small in Fintech industry. This is because small companies are likely to encounter many obstacles when attempting to face an already established Fintech company like Padua. The major obstacles to new entrants include the enormous amount of capital required to enter in the industry as well as the long time needed to set up a noteworthy brand identify and the many government regulations that govern financial institutions (Dorfleitner et al, 2017).

Reference list

Borsa I, 2014, Positioning Turkey as a Financial Hub, Istanbul: Borsa Istanbul.

Dorfleitner G, Hornuf L, Schmitt M & Weber M, 2017, FinTech in Germany, New York: Springer.

Melike B, 2017, Banking and Fintech: Developing a Fintech Ecosystem in Istanbul, London: BKM.

Nicoletti B, 2017, The Future of FinTech: Integrating Finance and Technology in Financial Services, New York: Springer.

Susanne C & Barberis J, 2016, The FINTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries, London: John Wiley & Sons.

Stefan F & Neumann D, 2017, Enterprise Applications, Markets and Services in the Finance Industry: 8th International Workshop, FinanceCom 2016, Frankfurt, Germany, December 8, 2016, Revised Papers, New York: Springer.