SWOT Analysis of Maybank, USP and Competitors
Maybank is one of Malaysia’s most reliable and popular online banking sites. They offer unique services to clients in the form of online banking. This SWOT analysis of Maybank will uncover its strengths, weaknesses, opportunities, and threats. It is important to remember that strengths and weaknesses come in the internal factors; however, opportunities and threats are the external business factors in SWOT. It is a reliable method that helps managers of Maybank to set the bank apart from others by analyzing its competitors and performance. In the financial and banking services industry, Maybank is one of the leading names in Malaysia.
In this post, we will discuss the SWOT analysis of Maybank along with its positioning, unique selling
proposition (USP), and segmentation. Here are some important facts about Maybank:
SWOT Analysis of Maybank
Company Name: Maybank
Founders: Oei Tjong Le, Khoo Teck Paut
Founded: May 31, 1960
Headquarters: Menara Maybank Kuala Lumpur, Malaysia
Parent Company: Malayan Banking Berhad
CEO: Khairussaleh Ramli (May 1, 2022-)
Type: Banking
Sector: Banking and Financial Services
Tagline: Humanising Financial Services
Unique Selling Proposition: To maximize value for stakeholders by keeping diversified portfolios and expansion.
Customers: Individual and institutional clients
Target Consumers: Investors, private individuals, entrepreneurs, organizations, SME’s, banking and financial institutions.
Revenue: RM51.03 (2021)
Net Income: RM13.30 billion (2021)
Strengths of Maybank | SWOT Analysis of Maybank
Maybank has so many strengths such as its competitive position in the market, experienced staff, and strong financial position. This section of SWOT mainly highlights Maybank’s major strengths. They have a strong edge in the market because of their unique financial and banking services. The following are some prominent strengths of Maybank:
Maybank is Malaysia’s leading financial and banking service, with a larger number of branches. Due to this reason, it is considered as the largest bank in Malaysia.
Currently, Maybank has more than 21 million customers. This kind of customer base shows that they are very popular in the country.
Maybank is not only working in Malaysia. They are also working in more than 17 countries. It means they have a global presence.
Maybank has the highest dividend yield if compared to other sectors or industries.
Maybank has the highest ROE (Return on Equity) and ROA (Return on Assets) when compared to other banks or financial services.
Weaknesses of Maybank | SWOT Analysis of Maybank
Like strengths, Maybank has some weaknesses in its working that can be improved to enhance its working and position. Weaknesses are those factors in which Maybank is currently lacking. However, it is easy to identify weaknesses with a SWOT analysis. Here are some major weaknesses of Maybank:
Maybank is not actively working globally because they mostly target Malaysian and Singaporean regions. This is a major weakness of Maybank, and they should focus on increasing their options globally.
The bank generates revenue from two major sectors: Islamic banking and retail banking. Its other services or products are not so lucrative.
Opportunities for Maybank | SWOT Analysis of Maybank
When it comes to opportunities, the Malaysian banking sector has so many growth opportunities for businesses. However, constant improvement is essential to keep business operations strong. Maybank can focus on improving its product portfolio, customer service, and geographic expansion to take the lead from others. Here are some major opportunities for Maybank:
Maybank has so many growth opportunities in countries like Laos. They need to get a license to operate.
Countries like Hong Kong can offer Maybank a wonderful growth opportunity.
The bank should improve its online banking services to attract more customers.
Threats for Maybank | SWOT Analysis of Maybank
Threats can negatively impact any business, especially banking and financial service like Maybank. Increasing competition, changing policies of the government, and new offerings from competitors can really harm the business. Below are some threats for Maybank:
Changes in government and economic policies can really harm the business of Maybank.
The ongoing macroeconomic challenges can also disturb the operations of Maybank.
Competitors of Maybank
The Malaysian financial and banking sector is highly competitive because of the presence of several banks. They are offering better services to customers to increase their revenue stream. However, Maybank is facing tough competition from the following banks:
Hong Leong Bank
Public Bank
CIMB Bank
PESTLE Analysis for the Banking Industry
The banking sector of any country affects the entire economy of the world. However, the banking sector heavily depends on two factors, government policies, and economic factors. Banks should offer services according to the law in order to keep their position strong. This PESTLE analysis of the banking industry highlights its political, economic, social, technological, legal, and environmental factors.
Political Factors | PESTLE Analysis
Obviously, the banking sector of every country looks strong. However, it is highly vulnerable to some giants like political parties and the government. When the government makes changes in policies and laws, it directly affects the performance or working of the banks. It means government rules highly influence the banking sector. Legislative laws, corruption, taxes, political stability, and labor laws are also important for the banking sector.
Economic Factors | PESTLE Analysis
Economic factors and banking sectors are interlinked to each other. Banking sectors behave differently in prosperous economies and surviving economies. People’s spending behavior, capital, and borrowing factors are important in economic conditions. In short, economic factors can heavily influence the banking and financial sector.
When inflation increases, it is not good for the banks as they face criticism. This factor impacts the value of a currency and brings instability. Foreign investors and stakeholders will hesitate to work in this kind of economic condition. They prefer those regions that have higher currency value. On the other hand, the exchange rate is another important factor.
Social Factors | PESTLE Analysis
These days, we don’t have time to wait in the long line to get banking facilities. Consumers want ease, and our banking system provides so much ease to them through online banking services. Now, you can get your desired banking service with just one click. You can get your money through ATMs using your credit cards. Customers like seamless banking facilities and technology are exactly doing the same. So it is easier for banks and financial institutions to attract consumers.
Technological Factors | PESTLE Analysis
Smartphones are one of the biggest inventions. It has been transforming people’s lives. You don’t need to visit your bank when you have access to their app or website. All in all, technology is transforming how customers manage their accounts. Almost every bank offers online banking services to consumers to receive and transfer funds. They also allow you to pay your utility bills through a mobile app.
Moreover, you can scan your cheques using your smartphone. It also saves people’s time and the use of paper. Now, users can insert their debit cards into debit machines to get cash. All these technological factors are enhancing the working of the banking sector. Banks are also exploiting technology in customer service to solve customer problems effectively.
Legal Factors | PESTLE Analysis
The banking sector follows very strict rules or laws on the subject of trade laws, privacy, and consumer laws. If you follow your country’s laws regarding banking and financing, you won’t face any trouble in your performance. However, if you follow the laws, you can survive in the competitive banking and financing sector.
Environmental Factors | PESTLE Analysis
The emergence of online banking facilities has reduced the use of paper. These days, customers don’t need cheque books because they have credit or debit cards. They don’t need paper to manage funds because they have computers and laptops to manage users’ accounts. In short, the banking sector has successfully reduced its environmental footprint.
Final Thoughts
The government has full authority to check the working of banks. They are also responsible for their operations and performances. But, banks play an important role in the growth of a country’s economy. However, factors like strict laws, inflation, and political instability can harm the growth of the banking sector.
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