SWOT Analysis Ideas for a Small Bank

SWOT Ideas for a Small Bank

Smaller financial institutions often face challenges in terms of their perception of financial security and lack of reach and global coverage. Larger financial institutions are much stronger brands, more sophisticated marketing analysis and tools, lots of locations, and are perceived well internationally.

Small banks need to focus on geographic areas, niche target markets, exceptional customer service, and even innovative product design.

Here is possible ideas for a Small Bank to feed into a SWOT analysis.

Strengths for a Small Bank

Great customer experience delivered
Good understanding of the customer journey
Good fit to customer’s needs
Effective niche marketer
Effective sales and service culture
Valuable customer database information
IT/software expertise
Highly agile
High service levels
Good understanding of the market
Effective online channels
Successful online sales channel
Success with online comparison websites
Strong social media engagement
Digital marketing expertise
Positive attitudes to the brand
Good local market knowledge
Customer-centric strategy
Easy-to-use products
High level of customer loyalty

Weaknesses for a Small Bank

Many product gaps
Limited product range
No structured CRM program
Limited number of new customers
Limited market share
No real economies of scale
Unable to truly understand where the market is heading
No use of marketing-mix models
Limited ability to keep up with technology
A market follower
Strong existing competitors
Many emerging new entrants
Cost disadvantage
Broad competitive set
Weak bargaining power with suppliers
No expertise in creating engaging online content
Limited online advertising experience
Limited sales area coverage
Limited access to key locations
Seen as a product follower

Opportunities for a Small Bank

Broaden our geographic reach
Expand our product mix
Broaden  our product range to target new segments
Map out and target the steps in the customer journey
Develop and implement a CRM program
Pursue greater economies of scale
Use cross-functional teams to streamline processes
Develop a customer relationship culture
Data mining of our customer  database
Build our IT/software expertise
Low inflation outlook
Introduce new, modern technology and/or systems
Become a disruptive innovator
Expand our use of social media platforms
Build/acquire digital marketing expertise
Advertise on online comparison websites
Utilize key sponsorships to broaden our brand
Create/build “consumer love” for our brand
Build online engagement with our brand
Redesign our key stores/outlets

Threats for a Small Bank

Ongoing weak social media engagement
Increased media fragmentation
Excessive cost of big data
Too slow in the development of new products
Becoming a me-too player, due to product mix
Weakening customer relationships
Declining share-of-customer
Slower growth due to the inability to raise funds
Inflexible internal processes
Being leap-frogged by competitor’s technology
Disruptive technology
Breach of data/privacy issues
Many emerging new entrants
Disruptive new competitors
Competitors targeting our product gaps
Competitors more able to diversify income streams
Competitors introducing better/improved products
Being outperformed by data-driven competitors
Being perceived as slow and outdated
Poor marketing ROI

Summary SWOT analysis for a Small Bank

SWOT analysis for a Small Bank

Also see: SWOT analysis ideas for a large bank