Financial Services – Comparative Banking Industry Analysis
Compare the banking industry in two countries and critically analyze three core aspects of how each system operates. Use evidence (regulations, market data, policy papers, bank reports) and present a concise, well-argued comparison.
• Country choice:
One developed market (e.g., UK/USA/EU/Japan/Singapore) and one emerging market (e.g., India/Indonesia/Malaysia/Vietnam/South Africa/Brazil).
• Three aspects (assessed):
- Regulatory architecture & supervision (who regulates what; prudential vs conduct; resolution regime; deposit insurance).
- Market structure & competition (concentration, funding models, challenger banks/fintechs, inclusion).
- Payments & digital innovation (real-time payments, open banking/data-sharing, digital ID, fraud controls, operational resilience).
How to structure
- Executive Summary (≤100 words)
One paragraph with your comparison headline and 2–3 defensible takeaways. - Country Overview (≤150 words total)
Bank penetration, key regulators, deposit insurance limit, real-time payments availability. - Aspect 1: Regulatory architecture & supervision
o Map the model (integrated vs twin-peaks; prudential vs conduct split).
o Explain resolution approach and deposit insurance.
o Discuss one current supervisory priority (e.g., operational resilience/third-party risk, climate, consumer duty). - Aspect 2: Market structure & competition
o Describe concentration (top-3 share) and presence of challengers/foreign banks.
o Funding mix (retail deposits vs wholesale), and implications for rate cycles & liquidity stress.
o Inclusion: access, affordability, vulnerable customer protections. - Aspect 3: Payments & digital innovation
o Real-time rails (coverage, limits, aliasing), QR/open banking, data portability.
o Fraud trends and liability regime (e.g., APP scams, confirmation of payee). - Conclusion
Which country’s model is better fit-for-purpose for stability and consumer outcomes—and why.
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Expert Answers on Above Questions on Banking Industry Analysis
The two countries selected for the purpose of analysing their banking industry are Singapore and India.
Country overview
In respect to Singapore, the majority of its population has a bank account with strong digital adoption. The Monetary Authority of Singapore is responsible for regulating the banking practices, and the system is highly robust offering real time payment opportunities via FAST and PayNow. With respect to India, the banking penetration is quite uneven though the population is very huge. Reserve Bank of India is the main regulator and the real time payments are facilitated through a unified payments interface.
Regulatory architecture and supervision
In respect to Singapore, it is the Monetary Authority of Singapore that handles Central banking and performs adequate supervision. The focus is mainly on financial stability and a robust regime aligned with global standards. While in case of India, it is highly segmented as RBI regulates banks and SEBI regulates capital markets. The focus is on achieving systemic stability and the current priorities include financial inclusion and digital risk management. This indicates that Singapore is more centralised and globally aligned whereas the Indian banking industry is development focused at the moment.
Market structure and competition
The Singaporean banking industry is a highly concentrated market with few major banks dominating the banking industry including DBS, OCBC and UOB. The financial inclusivity is very robust and there is a strong presence of foreign banks. With respect to India, it has a mixed structure combining public sector banks, private banks and growing fintech lenders. The state owned banks play a major role and significant efforts are made to achieve financial inclusion. It implies that the Singapore system is highly stable and internationally competitive whereas India’s system is aimed at achieving expansion through inclusion.
Payments and digital innovation
The infrastructure in Singapore is really advanced supporting real time payments using FAST and PayNow, and there is a strong push towards open banking API and data sharing frameworks. The banking system shows high operation resilience standards while in case of India, it is an upi system supporting real time payments, and the QR code ecosystem is massively used by small merchants.
Overall the analysis indicates that Singapore emphasizes secure and well regulated digital finance whereas in the case of India, it is aiming to scale the banking operations through mass adoption. The banking industry of Singapore is highly stable with strong consumer protection while India’s banking structure is excelling towards financial inclusion.
| This model answer is reviewed by Rui Shi, financial accounting expert good in performing comparative analysis. Disclaimer: This answer is a model for study and reference purposes only. Please do not submit it as your own work. |
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