Online Tutoring on Business Model
Introduction to the Company
Commonwealth Bank
Commonwealth Bank Australia is an Australian bank that provides retail, corporate and corporate clients in a variety of countries, offering a variety of banking and financial products and services (Webster et al., 2017). The bank offers a variety of banking products and services to various countries such as Australia, New Zealand, Asia Pacific and the United Kingdom. Many types of banking products and services include merchant accounts, savings accounts, time deposits, credit cards, personal and home loan financial planning services; Pension products, youth and student products, home, car, life, credit and credit protection, income protection and insurance products; Connected. The company is also known for offering commercial banking products such as merchant accounts and credit cards; Overdraft on Business Services and its Customers (Evans et al., 2019). In addition, the company offers products and services that help corporate and corporate customers generate cash flows and liquidity.
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Australia & New Zealand Banking Group Limited
Bank Group Limited in Australia and New Zealand is known for offering a wide variety of banking and financial products to its customers. The bank currently has 1,273 branches and is known for providing the best financial products and services to its customers. The company engages in regular customer reviews, credit, structure, performance and control analysis. Banking Group Limited was founded in 1835 and is headquartered in Melbourne, Australia. Bank customers include retail customers, small businesses, corporations and companies in Australia, New Zealand, Asia Pacific, the Middle East, Europe and the United States. Moreover, the company provides financing for individual customers such as vehicles, equipment, investment products and regional commercial banking services (Evans et al., 2019). In addition, the company offers proposed capital contracts, including deposit products, cash management, trade finance, international payments and payment services; and customer risk management services.
Financial Statements of CBA and ANZ
Analysis of Income statement and Balance Sheet
Based on previous performances of both CBA and ANZ, based on past financial analysis and other important factors, investors are advised to invest their future investment in ANZ, regardless of Union Bank. This can be said because the Commonwealth Bank’s liquidity position is not very strong and has received more foreign loans than existing assets. From the available table numbers, it is clear that the Bank of the Union does not have a current commitment of 0.180 of all current liabilities, indicating that the Bank may be facing a shortfall in financing its day-to-day operations (Kedia et al., 2017). A quick approach, another indicator of short-term liquidity position, also shows a similar position expressed by the current ratio. By comparing the current and rapid rate of bank bathing, it can be said that ANZ holds more current assets than Commonwealth banks. This indicates that ANZ Bank is financing the short-term current asset requirement compared to the Commonwealth of Independent States Bank. A few days ago, it was noted that the CEO of Commonwealth Bank was found guilty of millions of dollars in financial scandals (Janda, 2014). This Commonwealth of Independent States (ADB) financial planning places investor funds in high-risk investments without the use of any safeguards and safeguards. Therefore, Union Bank’s major investors have suffered huge losses as the bank’s investment is wasted or not repaid. This all happened without the permission of investors and clearly shows how irresponsible the bank is.
When looking at the profitability of the two banks, it can be said that the two banks have achieved the same profit in the last three years. Operating profit indicators show that between 2011 and 2013, Commonwealth Bank and ANZ Bank achieved average annual operating revenues of 50% to 54%. The gross profit margin of both banks is less than 1%, which implies that banks retain high asset levels. Such small profits can be achieved (Evans et al., 2019). This implies that the profit level of the two banks is not enough to pay investors high returns. However, despite the low yield, it can be said that ANZ Bank maintains a good income level for investors. Therefore, investors should invest in ANZ Bank which has high returns.
Market value ratios
Earnings per share
ANZ for the year $2.1 and CBA for the year 2018 is $2.74. The earning per share of Common Wealth Bank is higher as compared to ANZ but there are numerous other factors for investors before taking pertinent decision to invest in the stock or securities of any of these entities.
Contrasting Valuation Models of incorporeal assets at CBA and ANZ
Incorporeal Assets Valuation Models
For ANZ New island monetary instruments measured at fair value once the fair value is calculable, ANZ New island, to the extent potential, rating the market within the active market of the monetary instrument. within the absence of a vigorous marketplace for instruments, truthful price is predicated on an assessment of current valuation techniques or different market techniques (Kedia et al., 2017). Valuation models embody the impact of offer/demand variations, the unfold of counterparties and different factors poignant the truthful price determined by a market participant. the choice of applicable assessment strategies, methodologies, and judgments needs input (Evans et al., 2019). These practices are reviewed and updated as market practices evolve. ANZ contains a specific management framework that ensures truthful price through operate in spite of the party that identifies or approves the dealings. The management framework ensures that every one model is sporadically tailored so that results are often half-tracked by current market dealings costs within the same market information or different in public out their market data.
When victimization market costs, costs are checked in spite of different sources. For truthful values determined victimization the valuation model, the management framework is also developed or adopted, wherever applicable, severally of the valuation models, any inputs to those models, any changes needed outside the valuation model, and wherever applicable. To contain. freelance confirmation of sample results. during this method, constant changes to costs are secured. within the case of ANZ New island, compensation is that the risk, IFRS thirteen uses portfolio price measurements to live the truthful value of such teams of economic assets and financial liabilities (Webster et al., 2017). Any sale of an internet position (any asset) of a mere risk or a transfer of a brief net position (i.e. an obligation) of a specified risk.
At the same time, the CBA Group operates its business activities using the “cash” income scale. The main elements that are excluded from legal profit for this purpose are not duplicates or represent the Group’s sustainable financial performance. Revenue “main thing” is mainly used in the wealth management business. It provides a benchmark that excludes stock market volatility in equity funds as well as re-branding the brand in a guaranteed portfolio to measure central performance (Evans et al., 2019). Other income includes operating lease income recognized vertically over the lease term. This is recovered at the expense of depreciation and impairment of the Group’s operating lease assets. For a bank, it consists of a service charge for subsidiaries. Other income also includes the impact of foreign currency revaluation on foreign currency assets and liabilities. These assets and liabilities are returned to the spot value at the balance sheet date. Exchange differences arising on the settlement or exchange of cash are recognized in the income statement at cost less than the initial or previously reported value.
Comparing Economic Implications on CBA and ANZ
An environment challenges
The Australian banking industry faces a factor that makes simplification vital but complex. These options include customer preferences, new forms of competition, convergent sectoral approaches, slower debt growth, lower interest rates, broader policy and reform reforms, and the need for greater transparency to rebuild confidence. This change forces banks to face their strategies and operating models (Webster et al., 2017). Without changes, established banks will have difficulty meeting the expectations of shareholders, customers, and regulations.
How to make a Business Model Online Tutoring?
The aim of simplifying the bank is to associate with a fully structured company according to the needs of the customer and everywhere, but using a digital approach. This bank is streamlined from front to back and every process puts the customer at the center of attention. They are not organized into silos or product channels, and have no inherent limitations and are open to the outside world. The simplified roadmap will be different for each bank according to its strategic objectives and current state (Evans et al., 2019). The Bank’s five-step simplification approach, outlined below, defines how the bank can access a “related company” or ‘connected enterprise’.
Global Shift
Australia has been plagued by global changes in open banking law in Australia, including the EU Amendment Guidelines (PSD2) and General Data Protection Rules (GDPR). And the open banking system in the UK. PSD2 enhances legislation that enables innovation, product development, and payment market integration by using online and mobile payment information in the open banking world. The UK Competition Authority (CMA) has issued a decree that nine major UK banks will allow direct access to new companies/developers who can access their information (via Open APIs) to increase competition (Webster et al., 2017). The financial services industry is getting better results for consumers and small businesses. While the shift to open banking has had an impact on external practices and models, Australia is also learning some differences, and the Consumer Information Act (CDR) means that open banking is spreading to other sectors. Interaction of information between data subjects and recipients (e.g., before and after), as well as read-only (information exchange) from the first day. With an open banking system introduced in Australia in July 2019, banks and financial sectors are trying to capitalize on a new banking landscape. Similarly, retailers, start-up companies, technology operators and many others are exploring how banks can access and invest invaluable customer data that is headed today.
Building the frameworks
since the adoption of the Open Bank Review recommendations in May 2018, a joint network of legal and regulatory bodies in Australia has taken steps to establish a reform framework for opening open banks. The ACCC, RBA, ASIC, and APRA share responsibility for supporting the reforms needed to deliver open banking services, thus pushing for industry participants to be open to transparency by July 2019. CDR is an important legislative measure that ultimately creates open banking, an Australian law that gives clients the right to control, direct, and access private information already shared with their bank (s) and access to external service providers and their agents (Evans et al., 2019). This allows customers the freedom to choose and manage their financial services, their confidence in using their data, and to independently determine and evaluate the value of their data. The Open Bank Application in Australia is gradually introduced to introduce the impact of the House of Representatives to industry and customers and will start with the major banks starting July 1, 2019.
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