African Bank Limited SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: April 26, 2020

SWOT analysis of African Bank Limited analyses the brand by its strengths, weaknesses, opportunities & threats. In African Bank Limited SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like African Bank Limited to benchmark its business & performance as compared to the competitors. African Bank Limited is one of the leading brands in the banking & financial services sector.

The article below lists the African Bank Limited SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the African Bank Limited SWOT Analysis:

SWOT Analysis of African Bank Limited

For African Bank Limited, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

African Bank Limited Strengths

The strengths of African Bank Limited looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of African Bank Limited :

1.  The bank provides a variety of services such as credit cards, personal loans, savings and investment schemes, funeral plan etc.
2. The bank has received the credit ombudsman award for consecutive years
3. The analyst’s outlook for the bank look positive with the EPS and dividends per share expected to increase over the next two years.
4.  The bank has taken corrective action quickly to address the weak economic scenario.

5. It is a locally controlled bank by the Reserve Bank of South Africa

African Bank Limited Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the African Bank Limited SWOT Analysis:

1. Weak economic outlook can affect the activities of the bank as disposable income gets eroded and investor confidence goes down.
2. The quality of banks assets have gone down, with non-performing loans increasing which is a concern
3. The credit impairment charge has been increased last year, reflecting the difficulty that bank is facing in collecting the dues.


African Bank Limited Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in African Bank Limited SWOT Analysis:

1. Increasing living standards of customers can be seen as a sign of optimistic future.
2. Demographic dividend – The African population in the age group of 18 to 64 (working class) is increasing, therefore bank can look forward to more customers over the years.

3.  The should introduce loan products which are more suited to current needs of the customers base.

African Bank Limited Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of African Bank Limited are as mentioned:

1. The bank can face default risk if it fails to meet its obligations towards its customers.
2. The bank can face risk due to downgrading by credit rating agencies in the future.
3. The bank can face interest rate risk, due to market interest rates moving in a direction which is unfavourable to the bank.


African Bank Limited Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of African Bank Limited:

1. First Rand Bank
2. Nedbank Limited
3. Investec Bank Limited

Hence this concludes the African Bank Limited SWOT analysis.

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About African Bank Limited

African Bank Limited Overview
Parent Company

African Bank Investments Limited

Category

Banking and Financial Services

Sector

Banking & Financial Services

Tagline/ Slogan

Credit that works for you

USP

A bank which aims to be the best place to get loans for all purposes.

African Bank Limited STP
Segmentation

African nationals and corporate and business houses

Target Market

African home owners and businesses in need of financial services

Positioning

A bank which offers loans at comfortable terms and rates.


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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