Approach Of Westpac Towards Global Currency Cards

Write the approach of Westpac towards global currency cards and determinants of success

Chapter 1: Introduction

This chapter deals with presenting the brief of the topic. It includes the background of research, the problems underlying research, the objectives of the research and questions pertaining to the research. Thus, this chapter focuses on all the background information on the study.

Westpac has introduced an innovative concept by originating a global currency card into the market. These are essentially debit cards that a traveller can carry by the pre-loading currency of the respective country in that they intend travelling. Westpac has partnership agreements with around 50,000 ATM's around the globe where travellers are not required to pay the withdrawal fee that makes it very easy for a traveller to withdraw cash at any point in time. With this global currency card, a traveller can also obtain goods and services in foreign countries without paying a typical 3 % foreign exchange transaction fee (Abiodun E, 2012). Due to the ease of use and minimal charges, travellers have now started carrying such global currency card and using cash and travellers' cheques far less due to security issues. This is the most important success factor for Westpac. This reloadable card enables a traveller to make payments or extract cash in multiple currencies.  Along with these specifications, one more important feature of the global currency card is that a traveller can secure the prevailing exchange rate. This is a significant feature of the global currency card as it reduces the risk of major currency fluctuations. When a traveller believes the exchange rates are favourable they can effectively lock in an exchange rate.

Due to advances in technology such as online banking and e-commerce, there are changes that have affected the lives of so many people. The trend these days is people prefer not to undertake cash transactions and governments are also encouraging people to adopt electronic money, and this has given rise to a cashless society. These are the major reason that is contributing to the success of Westpac's global currency card. The cashless society has also impacted the economic conditions of the regions where they are operating(Hall, 2014). Thus all the factors when struck together determine the success or failure of the global currency card. There was a time when people would stand in a queue to withdraw money, deposit money, transfer money, and get their passbook updated with every financial transaction. People also used to pay heavy fees for availing these services. This is predominantly conducted online these days. 

Many customers and travellers have been attracted towards the Westpac global currency card due to its features and services. The card has so many advantages that travellers are adopting this product in growing numbers. Due to these reasons, the role of financial institutions has been diminishing. There are several other dimensions that are related to the global currency card. This study is focussing exclusively on the factors that are determining the success of the Westpac global currency card among its customers (Emengini, 2014). For that purpose, the researcher will make an effort to know the perspective of customers and their opinion about these cards. The distinction between the services of the global currency card and financial institutions would also be drawn for this purpose.

The objective with which this study is undertaken is to find out the major factors that are contributing to the success of global currency cards. Westpac Banking Corporation is the oldest financial institution in the country and the second largest bank in Australia that is serving more than 13 million customers (Michael, 2013). It would also analyze the steps that have been taken by Westpac to make the global currency card successful. It would also analyze the factors that have influenced success to a great extent. The aim of the research is to analyze the factors that are important for the customers with respect to global currency card. These important factors will then be contrasted with the factors of financial markets and institutions.

The significance of the research is ascertained from the fact that more and more users are connecting with Westpac regularly and its market share is increasing at a steady rate (Woodford, 2013). This increased number of customers is triggering the trend of electronic cards to make payments at any point in time without any confusion or ambiguity. This is why the project would examine the financial factors that are enabling Westpac to achieve this success.