SWOT Analysis of Standard Chartered Bank
Standard Chartered Bank is one of the most renowned and reliable names in the financial services sector. It offers banking services to customers. The company’s high growth is the result of unique offerings and exploiting opportunities. Therefore, we are conducting its SWOT analysis. Indeed, SWOT is a superb strategic planning tool that stands for strengths, weaknesses, opportunities, and threats.
About Standard Chartered Bank:
Standard Chartered Bank is probably one of the oldest companies in the international banking sector. It is a British financial company with extensive international reach. The headquarter is located in London. With more than 87000 employees and 1200 branches, it has had an incredible impact across the world.
Presently, it is providing its services in more than 70 countries. The company has a strong marketing strategy as they are the main sponsor of Liverpool Football Club. Despite its immense growth, there are some areas that need some attention. So, SWOT analysis will give important details about the company, its strategies, and future policies.
Company Name: Standard Chartered
Founders: Chartered Bank of India, Australia and China, Standard Bank
Founded: 1969, London, United Kingdom
Headquarters: London, United Kingdom
Parent Company: Standard Chartered Holdings Limited
CEO: Bill Winters (Jun 10, 2015-)
Type: Bank
Sector: Banking and Financial Services
Tagline: about us We’re here for good
Unique Selling Proposition: Strong presence in African and Asian regions.
Customers: Merchant and personal banking.
Target Consumers: Enterprise and individual investors.
Revenue: 14.7 billion USD (2021)
Net Income: 2.313 billion USD (2021)
Strengths of Standard Chartered Bank: SWOT
Reliable Company:
As we mentioned above Standard Chartered Bank is one of the oldest companies in the banking sector. According to Forbes, it is one of the best multinational performers in the world. So, it has a perception of a valuable and reliable group on people. These factors give strength to the company.
Strong Brand Image:
The company’s overall brand image is really strong due to its high quality services and financial stability. The bank has helped several institutions in their bad times. So, its value is really huge in the world.
Valuable Policies:
They use various philosophies such as “Better Together”, “Do the right things”, and “Never Settle”. Such philosophies convey a better image of the company to the world, making it the biggest strength of Standard Chartered Bank.
Assets:
According to the reports of several financial companies, Standard Chartered Bank is one of the most financially stable banks with a total asset of 827.8 billion USD.
Targeting Underdeveloped Countries:
The bank has a strong foothold in developing markets, but they are also targeting underdeveloped markets to increase its reach. They are focusing on Indian, African, and Middle Eastern regions to exploit new opportunities. These initiatives can give the company the desired boost.
Utilizing Opportunities:
Emerging markets are the main markets of Standard Chartered Bank. It generates more than 80 percent of its earnings from these markets. It offers unique and customizable services in these markets and it is a great strength of the company.
Weaknesses of Standard Chartered Bank: SWOT
Slow Productivity Level:
The company is struggling in the developed markets due to an increase in oil price, increased taxes, weak demands, etc. It shows its weakness in the developed markets.
Highly Dependent on South-East Asia:
The bank is highly dependent on the South-East Asia markets such as China. It could be its greatest weakness if something bad occurs.
Higher Charges:
In several markets, the company’s competitors are providing better services and products at low prices. The company charges hefty charges in lodge fees, minimum balance fees, etc. They can lose their customers if it continues.
Low Marketing Share:
Other multinational banks spend a great sum of money on marketing, but Standard Chartered Bank has less marketing share. Its marketing strategy is not so aggressive as compared to competitors. They used conservative and defensive marketing strategies. It may be a weakness of the company that can disrupt its profits. Moreover, they have very few ATMs across the world.
Shortage of Employees:
They do not have skilled and qualified workers to run the business. This shortage of workforce could create some trouble for the company in the future. To operate seamlessly, they need a skilled workforce. They should hire new people to serve the consumers.
Opportunities for Standard Chartered Bank: SWOT
Increase in Business and Trade Sections:
The bank should increase its trade and business relations in emerging markets. It can help the entity to increase its exposure and image.
Global Expansion:
They have the potential to increase their reach to a global level. Emerging markets like India, the Middle East, and Africa can give so many growth opportunities to the company in various ways.
Mergers and Acquisitions:
To expand business at the global level, Standard Chartered Bank must acquire smaller institutions. They can collaborate with big companies to increase their offerings and products.
Online Platforms:
During Covid-19, many companies have invested in online platforms to boost sales and exposure. The bank can use the same strategy to target new customers all around the world. For this reason, they must invest in improving their online presence and online services. In this way, they can acquire more profits and customers as well.
Low Inflation Rate:
The company can achieve more by targeting countries with the low inflation rate. It brings more stability, and the bank can strengthen its position in the competitive market in terms of revenue and net income.
Consumer Behavior:
Targeting new customers means you need to bring new trends as well. This thing can create so many opportunities for the bank and helps to enhance its revenue stream. They should provide services according to the need and behavior of customers.
Threats to Standard Chartered Bank: SWOT
Heavyweights in the Banking System:
The international banking sector is heavily crowded with so many heavyweights. Competitors of Standard Chartered Bank are targeting new customers by offering customizable services. They provide better services, products, and facilities to take the lead. They could be one of the biggest threats for the bank.
Government Policies:
It is imperative to follow the country’s government policies in which you are operating. As a multinational organization, it is hard to adhere to all the laws and regulations. So, some changes in government policies could be disastrous for the company.
Liability Laws:
These laws vary from country to country. So, they have a huge impact on the business performance of Standard Chartered Bank.
Innovation’s Supply:
As compared to others, the company is lacking in innovation. They do not have innovative products and an online presence. It is a major weakness for the company and could be lethal for its revenue and net profit.
In Conclusion:
Being an international financial company, Standard Chartered Bank should focus on creative and useful marketing campaigns to attract new consumers. They just need to focus on under-developed markets and brand innovation to take the lead from others. We want to give the example of Levi’s here that how they attracted customers from successful marketing of high quality jeans.
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