Vanquis Bank SWOT Analysis, USP & Competitors

Posted in Banking & Financial Services, Total Reads: 878
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SWOT Analysis of Vanquis Bank with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Vanquis Bank

Parent Company

Provident Financial Group

Category

Banking and Financial Services

Sector

Credit Cards

Tagline/ Slogan

-

USP

The bank provides credit facility to UK residents with limited or uneven credit history.

STP

Segment

British residents in need of banking facility

Target Group

British nationals in need of credit facilities and credit cards.

Positioning

A bank which helps people repair bad credit, who have been denied credit elsewhere.

SWOT Analysis

Strengths

1. The bank has won Credit Provider of the Year at the Credit Today Awards
2. The bank is headed by experienced team having very good understanding of the banking sector.
3. The bank has 2 main products – Vanquis card and the Aquis card, both of which are licensed under VISA.
4. The bank has seen tremendous growth. It crossed its breakeven point within 5 years of establishment.

5. The bank has involved itself in various charitable causes such as the Hatua, which aims to educate children in poorest parts of Kenya and provide necessary support to talented students.

Weaknesses

1.The bank has faced criticism on credit forums such as Money Saving Expert for the high interest rates charged on their product cards and charges levied on defaulted payments.
2. The bank has also faced criticism regarding its lending policy, from its own collectors

3. Relatively new brand having limited reach compared to bigger brands

Opportunities

1. The bank has seen aggressive growth in the past few years. The bank opened new offices which will result in greater volume of customers. The bank has also opened a new call centre at Bradford.
2. The bank has also launched new credit card facilities including internet and SMS support.
3.  The bank has received approval to issue high yield bond product from FSA.

4. The bank has received a passport banking license to operate in Poland

Threats

1. The bank faces very high default risk as it provides credit to customers who have a bad credit history, and have been rejected credit elsewhere.
2. Legislative moves or regulatory changes can affect the bank adversely.
3. The bank can face risk due to changing interest rates resulting in a mismatch between its assets and liabilities.

Competition

Competitors

1. Barclays
2.UBS
3. First Direct



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