Posted in Banking & Financial Services, Total Reads: 780
SWOT Analysis of Hua Xia Bank with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis
Hua Xia Bank
Hua Xia Bank
Banking and Financial Services
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A brand of "SME Financial Service Provider"
Electronic banking, personal banking, corporate banking and SME credit banking
Provides financial services to corporate and individual customers
Hua Xia Bank matches financial services with customers’ demand by supporting the projects to serve the "Agriculture, Rural Areas and Farmers" in serving the micro and small enterprises (MSEs)
1. Hua Xia Bank has in place a "hub-and-spoke" network of 30+ tier-1 branches, 20+ tier-2 branches, 12 cross-city sub-branches and 400+ outlets in 68 major cities
2. They also have a settlement network of more than 1000 correspondent banks located across 110 countries
3.Hua Xia Bank witnessed fast growth and gained impressive profitability with improving asset quality and optimized business structures
4. Hua Xia Bank was top100 among The Banker's Top 1000 World Banks ranking published in July
4. Hua Xia Bank won the "SME Support Award" in the Bank Competitiveness Ranking in Asia and was named "Best SME Finance Bank"
5. Hua Xia Bank received numerous awards including "China Banking Association Social Responsibility Practice Award"
1.High cost and high risk in SME financial business
2. The bank has no international presence and hence geographic concentration affecting competitive strengths against international peers.
3. Dependent on volatile financial market to maintain profits.
1. Fast-proceeding interest rate liberalization in China is opening the avenues for more profitable business
2. Deepening financial disintermediation in Chinese domestic financial market, opening the financial market 3. Growing banking sector in Asia Pacific region
4. China has over 50 million small and micro enterprises (SMEs) majority of which rarely had much experience of modern financial services
5. International expansion likely to bolster revenues, the bank should try to expand its presence in overseas markets
1. Slowdown in Chinese economy may impact loan and earnings quality 2. Rising deposit reserve requirement ratio to limit credit disbursement. The rise in deposit reserve requirement ratio will mean banks will have to set aside more of their deposits on reserve. This could have negative impact on business growth. 3. Increasing competition from foreign banks. For instance, the Bank of East Asia, Citibank, DBS Bank, Hang Seng Bank, HSBC, and Standard Chartered estimate that they will collectively operate over 500 branches and sub-branches.
4. Rising deposit reserve requirement ratio to limit credit disbursement
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