Predicting Adoption Of Financial Services

Opportunity viability and market feasibility of Money Ply

Discuss About The Predicting Adoption Of Financial Services.

Fintech is one of the most promising and probable business sectors in the recent time. This is mainly due to the reason that boom in the financial market and high market penetration of the internet facilities. This is motivating more new entrepreneurial ventures to enter in this market and offers more innovative services (Mohan 2016). Money ply is one of the recent entrants in this sector with the objective of providing online services of payment options. They will have online apps, websites and dedicated kiosks to let the customers use their financial services from their convenience. Money Ply will venture with leading financial institutions in order to let the customers to access the financial services with major number of banks. In the initial stage, they will start their operation in the South East Asian market and in the further stage they will start their operation in the western regions (Mackenzie 2015).

The key value proposition will be offering online payment services to the customers along with offering the facility of transferring money from one bank account to another. Thus, Money Ply will enable the customers to avoid the physical presence in banks for their daily financial transactions (Terpstra and Verbeeten 2014). Money Ply will also be able to store the credit and debit card details and customers will be able to shop with their Money Ply apps. Security features will also be latest with the addition of the fingerprint scanner. Thus, customers will not have to carry their cards and other banking details with them (Robb et al. 2015). They can shop and do any other activities from the app just with their fingerprint.

This report will discuss about the opportunity viability and market feasibility of Money Ply. Industry competitiveness and financial feasibility will also be determined in this report.

Starting a new business enterprise is not an easy task. It requires the business owners to invest their time and opportunity into the venture in order to make sure that they achieve success in the business. According to me, I am capable to conduct the given opportunity because I have experience in the given field. This experience comes from the fact that I have taken part in various events during my university which have prepared me emotionally and mentally to indulge in such activities. I have taken part in various entrepreneurial processes and contests, which have required my full attention. Thus, I believe that I have the ability to contribute towards the welfare of my organization. Furthermore, I am physically very active and exercise regularly which makes me capable enough to give in long hours for the work that is required to build my enterprise. I have done my post graduate degree in business management which has provided me with enough knowledge with reference to how a person should manage his business enterprise.

Political, Economical, Social, and Technological Analysis

Thus, I believe I have the adequate skills to manage my organization and will be able to cope with the emotional, physical and intellectual demands that are present in order to start my new venture.

Political	·         Political environment in the South East Asian regions is favorable and positive. ·         However, there are various legal and regulatory issues regarding the online financial services. ·         Due to the emergence of different issues in the recent past, regulations are becoming more stringent for the online financial services.
Economical	·         Economical environment is favorable due to less cost associated with the customers. ·         However, there are already branded players such as PayPal are operating in the market along with different regional players. ·         Cost of maintaining the online infrastructure is huge. Thus, it may get difficult for Money Ply to upgrade their services at par of the competition.
Social	·         There are still social concerns regarding the safety and security of the online financial services. ·         Majority of the probable customers wants to opt for renowned services over the new ones (Yen and Wu 2016). ·         Credibility and concerns of breach of privacy are also the challenges for Money Ply.
Technological	·         Rapid up gradation of the technology is important for Money Ply to survive in the market. ·         Technology should be secured enough to prevent any breach of privacy. Thus, it is important for Money Ply to invest more in securing their technologies.

In terms of the demographic segmentation, Money Ply will target both male and female customers due to the fact that both of them are active in the financial market. In terms of the geographic segmentation, the countries in the South East Asian region will be targeted. In terms of the psychographic segmentation, customers who are updated and are open to new technologies and new lifestyles will be targeted with the innovative offerings.

Threat of new entrants	·         Threat of new entrants is low due to the act that huge investment is required. ·         Complex legal regulations also prevent entry of new players in the market.
Threat of substitutes	·         Threat of substitute is high due to the presence of number of competitors. ·         All the competitors are having similar service offerings.
Bargaining power of customers	·         Bargaining power of customers is moderate. ·         They are having good number of options. ·         However, switching cost is high due to the presence of banking regulations.
Bargaining power of suppliers	·         Bargaining power of suppliers is low. ·         Less dependency on the suppliers.
Competitive rivalry	·         Competition is high due to the presence of number of players. ·         Various offers and strategies are being initiated in order to stay ahead in the competition.

Product	·         They will have diverse offerings including mobile apps, banking transactions and online shopping. ·         Will cater to diverse requirements of the customers.
Price	·         Using the service is free for the customers. ·         They will only pay for huge financial transaction. ·         Revenue will get generated from the commission from banks.
Place	·         Online presence will ensure availability of the services in every place. ·         Service will be able with all the major banks.
Promotion	·         Social media marketing will be initiated in order to reach out to more number of customers. ·         Pay per click and online based marketing will also be initiated.

The requirements for the business have been given as follows:

• Application developer- As the business is basically based on the mobile application and the website, it is important for a firm to have a strong and viable relationship with the web and application developers in order to update their technology considerably and to ensure that their application and website never crashes (Chiu 2016).
• Specialists and Qualified Employees- As the business is related to the FinTech field, it is very important for the organization to ensure that the company has qualified employees who have a degree in finance to see to it hat they are able to manage their operations carefully. Specialised offers in IT are also important as the business is primarily based on an application business (Casadesus?Masanell and Zhu 2013).
• Office facilities- The Company needs to have a specific office in the various cities that it will be operating in. The company also needs a head office. The given office should have all the facilities that are required so that it can function properly (Brigham and Ehrhardt 2013). This office needs to be at a prime location and should have basic electricity, water supply and other related facilities.
• Telecom Services- As the business is related to FinTech, it is very important for the business to have excellent internet connectivity and telecom services which will ensure that the business can stay connected to its users at all times. As the application will be governed directly from the head office, it is important for the head office to have backup facilities and good connectivity.
• Labour Costs- The kiosks, customer care and other aspects of the business will be requiring extra labour which will help the business enterprise to function effectively.
• Patent and Intellectual Property cost- As the business idea is relatively a new one, the company will require to register with the Registrar of Fintech Business and acquire this patent (Scott 2015). This will enable and see to it that no one is able to steal the business idea and the idea remains protected.

The business owner aims to raise the fiancé of the business in the following manner:

• Personal funds
• Loans from the bank (Zott and Amit 2013)

The various Star-up Costs are as follows:

• Labour
• Rent
• Web applications set up costs
• Staff expenses
• Legal fees
• Telecom Services

START-UP REQUIREMENTS
Start-up Expenses
Legal	$50,000.00
Labor	$20,005.00
Brochures	$15,070.00
Consultants	$10,090.00
Insurance
Rent	$600,089.00
Research and Development	$12,008.00
Expensed Equipment	$52,000.00
Other
TOTAL START-UP EXPENSES	$759,262.00
Start-up Assets	$20,000.00
Cash Required	$10,000.00
Other Current Assets
Long-term Assets	$33,215.00
TOTAL ASSETS	$63,215.00
Total Requirements	$822,477.00
Table 2
START-UP FUNDING
Start-up Expenses to Fund	$759,262.00
Start-up Assets to Fund	$63,215.00
TOTAL FUNDING REQUIRED	$822,477.00
Assets
Non-cash Assets from Start-up	$20,000.00
Cash Requirements from Start-up	$10,000.00
Additional Cash Raised	$33,215.00
Cash Balance on Starting Date	$10,000.00
TOTAL ASSETS	$63,215.00
Liabilities and Capital
Liabilities
Current Borrowing
Long-term Liabilities	400,000.00
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
TOTAL LIABILITIES
Capital
Planned Investment
Investor 1	$422,477.00
Investor 2
Other
Additional Investment Requirement
TOTAL PLANNED INVESTMENT	$822,477.00
Loss at Start-up (Start-up Expenses)	$759,262.00
TOTAL CAPITAL	$63,215.00
TOTAL CAPITAL AND LIABILITIES	$63,215.00
Total Funding	$822,477.00

Performa p and l
	Year  1	Year 2	Year 3
Sales	$  20,50,600.00	$  35,00,000.00	$  90,00,000.00
Direct Costs of sales	$    2,56,450.00	$    5,00,000.00	$    6,00,000.00
Gross Margin	$  17,94,150.00	$  30,00,000.00	$  84,00,000.00
Gross Margin percentage	87.49390422	85.71428571	93.33333333
Expenses
Payroll	$    1,20,000.00	$    1,50,000.00	$    1,60,000.00
Marketing	$        20,000.00	$        15,000.00	$        14,260.00
Rent	$        10,000.00	$        10,000.00	$        10,000.00
Taxes
Depreciation
Others	$        12,534.00	$        16,666.00	$    1,75,280.00
Total	$    1,62,534.00	$    1,91,666.00	$    3,59,540.00
EBIDTA	$  16,31,616.00	$  28,08,334.00	$  80,40,460.00
Net profit	$  16,31,616.00	$  28,08,334.00	$  80,40,460.00
%	79.56773627	80.23811429	89.33844444

The given business enterprise, has a great plan with a look of the future. All the countries around the globe are becoming digitalized and therefore, they will be requiring such payment portals to ensure that they are able to digitalize successfully (Haddad and Hornuf 2016). Therefore, the business is scalable and if the company receives enough funs, it will be able to expand its operations to various countries around the globe. At present, the company plans to exercise its operations in the host country. If it is able to achieve success there, it plans to increase its operations and expand its operations in other parts of the globe. Hence, if the business plans to expand its operations, it needs to search out for new investors and technological support so that it becomes a global name in the FinTech industry.

Conclusion

Thus, it can be concluded that Money Ply is having positive potentiality and opportunity in the market due to their innovative offerings. This report discussed about the market, business and financial feasibility of Money Ply and it can be concluded that proper allocation of the resources will help them to create their market share in the highly competitive market. It is expected that the financial plan along with the What-If analysis done in this report will help Money Ply to have the ideal financial and operational forecast for their further business operation.

Reference

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