HBOS SWOT Analysis, USP & Competitors

HBOS

Parent Company

Lloyds Banking Group

Category

Finance and Insurance

Sector

Banking & Financial Services

Tagline/ Slogan

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USP

UK’s largest mortgage lender

HBOS STP

Segment

Retail (personal) segment, corporate segment

Target Group

Targets those customers who want either complex, full-service financial advice or a basic product with no advice

Positioning

As a fifth force in British Banking to the established Big Four UK retail banks

HBOS SWOT Analysis

Strengths

1. UK’s largest provider of mortgages
2. Huge retail customers base over 20 million
3. As a group it employs about 70,000 people worldwide (resource advantage)
4. One of the top provider of investment products in UK

Weaknesses

1. Due to economic downturn, shortage of credit between the banks and increased mortgage defaults, HBOS was taken over by Lloyds Bank
2. Lost 80 percent market value due to speculation and rumors of short selling in 2008
3. Systemic mortgage fraud throughout HBOS before the takeover

Opportunities

1. Takeover by Lloyds TSB offered financial security
2. More stable footing
3. It can target retail savings accounts as the public is still reluctant to move their cash around

Threats

1. Economic downturn: Recession
2. Less disposable income with increase in unemployment
3. Credit crunch syndrome

HBOS Competition

Competitors

1. Barclays
2. HSBC
3. The Royal Bank of Scotland Group