Professional Enquiry - Research Proposal Example

Professional Enquiry Name: Course: Tutor: Institution: Date: Introduction The banking industry is currently on a developing trend. Over the years, the industry has faced increased market challenges such as the global financial crisis of 2008 that fundamentally changed the functioning and the structure in the industry. At the onset of the global financial crisis, two forms of trading were apparent in the banking industry namely the banking and retail trading (Golin, 2010, p.36). Reviews on the causes of the financial crisis and the eventual escalation of the problem in the market link back to these forms of trading in the industry. However, the challenge remains in the identification and separation of the two traders types (Nekritin and Peters, 2012, p.46). As such, the proposed research is a review of comparison between the two traders to establish features similarity and differences. As such, the research intends to increase the current literature pool on the two traders’ types. Literature Review There exists an increased range of differences between bank traders and the retail traders in the financial industry. This can be established on the nature and products that each of the traders’ type deals with. On one hand, the bank trader deals with products not emanating from the bank, but whose trading is facilitated by the respective banks. Such products trading include products such as the bonds, and currencies. In this case, the bank traders concentrate on the selling and buying of these products in the market. In most cases, the traders in this case are the banks themselves (Pond and Lipscombe, 2007, p.93). On the other hand, the retail traders deal with marketing and selling products developed by the banks. As such, the retail traders market respective banks products such as the banking accounts, loans as well as other products in the market. Therefore, a theoretical review on the two types of traders establishes their variances on the nature and the products they market in the industry. While as one sells products developed by other market players and facilitated by the banks, the other one sells products developed and emanating from the banks themselves (Stowell, 2010, p.99). Despite the established variances between the bank and retail traders in the financial industry, theoretically the two have similarities. One such similarity is the customer base. Both traders target a shared customer base. The selling of bank and other financial investments in the market is n investment approach. As such, both traders target the investing class in the financial industry. On one hand, Carstensen and Farmer (2008, p.200) argued that the bank traders target investors willing to invest in the financial market. Such investors deposit their finances for long term investment periods. On the other hand, the retail traders target investors in the market willing to invest in the respective banks, in the market. Although with their variances in the customer base, the traders’ customer bases share market intentions and a desire to invest in the market. In addition, the two trader types share the concept of their payment mechanism. Each of the traders earns revenues based on commissions (Ernoult and Schoppmann, 2008, p.171). As such, they earn revenue based on the amount of products sold based on the interest and gains accrued form each respective product sold. Research Question and Objectives Based on the established background on the concept and theoretical comparisons between the bank and retail traders in the industry, the research develops a research question on are the two types of traders alike or does there exist fundamental differences? In order to address this research question, the research develops a strategic aim (De Sousa and Freitas, 2012, p.485). The aim forms the research deliverable. A research deliverable is classified as the contribution that a particular research offers to the society upon its completion. In this regard, the research develops a deliverable in the financial industry literature through increasing empirical evidence on the existing theoretical literature on comparisons between the bank and retail traders in the industry. In targeting this research deliverable, it is imperative for the study to develop appropriate research objectives. Riccobono, Bruccoleri and Perrone (2013, p.496) describe research objectives as the operational tools through which research projects operational tools through which project structures are operated. The objectives provide an operational framework through which the projects are operated. As such, this research project develops two key strategic objectives • Evaluate bank and retail traders’ features • Establish similarities between the bank and retail traders Therefore, based on the research project objectives and the overall deliverables in the market, the project intends to deliver and develop a logical answer to the developed research question. Methodology In order to establish and respond to the developed research question, the study proposes the adoption of an interview with the respective respondents. In this case, the study identifies its population as the traders in the market. Through this, the study identifies its sample from this population. The proposed sample will be selected through a stratified simple random approach. This sample selection process will divide the sample into two stratus namely the bank and the retail traders respectively. Further, individuals in these strata’s will be selected randomly. Random selection of the sample reduces on the overall bias concept by the researcher. In addition, the simple random approach allows for increased equal representation of the population. Through this sample selection approach, as Freimer, Linderoth and Thomas (2012, p.53) argued, all the individuals in a population have equal opportunities to selection in the sample, each of the variables posses’ equal probability for inclusion in the sample. In collecting research data, this study intends to apply observations and interviews with the distinct samples. The observation approach is an imperative tool for evaluating research issues that have features easily identifiable (Rees, 2011, p.133). For instance, observations will be made on the type and variety of products each of the traders engages in. Further, the study will apply interviews. As such issues such as their motivating factors, market rules and policies will be evaluated and compared through this methodology. The adoption of a blend between interviews and observation will facilitate increased focus on the research topic. Further the research will analyze the data quantitatively through inferential and differential statistics. Conclusion In summary, this paper evaluates the comparison between bank and retail traders in the financial industry. Theoretically, the paper conducts a literature review establishing that the two trader types have both difference and similarities. In this case, the traders have variances in the products sold. On the other hand, they have similarities in the customer base investment approach. In its analysis, the research seeks to deliver on increased literature on the subject. Therefore, the research adopts strategic objectives to enable it deliver on this aim. Finally, the paper reviews the proposed adoption methodology that is a blend between interviews and observation techniques. The sample will be divided into strata’s and selected based on the stratified simple random approach. References Carstensen, P. C., & Farmer, S. B. 2008, Competition policy and merger analysis in deregulated and newly competitive industries. Edward Elgar, Cheltenham, UK. De Sousa, L. & Freitas, R. 2012, "Lost in transaction. Ensuring the deliverables in development aid", Crime, Law and Social Change, vol. 58, no. 5, pp. 483-494 Ernoult, & Schoppmann, H., 2008, European banking and financial services law, Larcier, Brussels. Freimer, M.B., Linderoth, J.T. & Thomas, D.J. 2012, "The impact of sampling methods on bias and variance in stochastic linear programs", Computational Optimization and Applications, vol. 51, no. 1, pp. 51-75. Golin, J. L. 2010, The bank credit analysis handbook: A guide for analysts, bankers and investors, Wiley Singapore Nekritin, A., & Peters, W. 2012, Naked Forex: High-Probability Techniques for Trading Without Indicators, John Wiley & Sons, Hoboken. Pond, K., & Lipscombe, G. 2007, Retail banking. Canterbury: Global Professional, Cantebury, Global Professional, Rees, C. 2011, An introduction to research for midwives, Churchill Livingstone/Elsevier, Edinburgh Riccobono, F., Bruccoleri, M. & Perrone, G. 2013, "Business agreements objectives and decisions: a field research", Management Research Review, vol. 36, no. 5, pp. 495-527. Stowell, D. 2010, An introduction to investment banks, hedge funds, and private equity: The new paradigm, Academic Press/Elsevier, Burlington, MA. Read More