The Changing Financial System and Role of Financial Institutions in Australia

TOPIC 2: The changing fiscal System and parting of monetary Institutions Objective 1 outline and explain the main(prenominal) causes (drivers) of change in the financial organisation.­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ From the first 1980s the financial system has been undergoing continuous and rapid change, that is primarily operate by the one-third interlinked forces of changing customer call for, new technologies and changes to regulation. Changing cutomer needs. Changing customer needs are the result of an ageing population, changing workforce patterns (eg. cut job security, early retirement), increasing appeal of financial assets and liabilities by the household sector and increasing disposition of comfort and willingness to take in new engine room. As a consequence of these changing needs: Customers are to a greater extent and more than moving towards electronic channels of delivery which offer bring down equal and greater convenience. Products which offer increased convenience and in demand(p) features such as the ability to smooth cash flows everyplace the life steering wheel will increasingly be sought by customers. Customers choice of suppliers is increasing and they are more likely to select suppliers offering the best value. 2.1.2 Changes in technology Technology is allowing innovation to slip by in the financial serve industry at an accelerating pace, star(p) to significant changes in financial relationships and market structures. In limited: Improvements in communications foundation and technology are breaking down strong-arm constraints and equal barriers to the transmission, storage and use of knowledge. Information networks are evolving in argument with proprietary systems.

Development of electronic channels for payments and financial services delivery. Data mining. Physical location of customers and suppliers is becoming little important. Financial industry cost and pricing structures are under challenge. nonionic markets and exchanges increasingly using electronic trading and information conference and reporting.. 2.1.3 Changing government regulations Along with changing customer demeanor and technology, changes to government regulation and government activities ware influenced the financial system. Over... If you essential to get a full essay, come out it on our website: OrderCustomPaper.com

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