Santander UK SWOT Analysis, Competitors & USP

Santander Group

Banking and Financial Services

Banking & Financial Services

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Large customer base and reach through large number of branches.

British homeowners, savers and corporate

British individuals, businessmen, and corporate

A bank which is one of the leading providers of personal financial services.

Below are the Strengths in the SWOT Analysis of Santander UK:

1. One of the largest bank in UK in terms of deposits held and largest in terms of mortgages held and fourth largest in terms of branches operated.
2. A wide customer base of over 25 million customers served by over 25000 employees of the bank.
3. The banks “123” product range was ranked third best in UK

4. The bank caters to a wide range of customers including individuals, businessmen, and corporate. It provides wide range of services including current accounts, mortgages, credit products, insurance and savings and investments.

5. The bank provides online banking services, including mobile app and a internet-only banking division called Cahoot.

6. The bank is a member of the Financial Services Compensation Scheme, UK Payments Administration, Bankers' Automated Clearing Services (BACS), the Faster Payments Service, the Clearing House Automated Payment System (CHAPS), the Cheque and Credit Clearing Company and the British Bankers' Association.

Here are the weaknesses in the Santander UK SWOT Analysis:

1. The bank has been frequently ranked as the worst bank in terms of customer service. It was ranked as worst bank for customer service in the J. D. Power UK Retail Banking Satisfaction Study
2.Rating agency Moody’s had downgraded the bank’s credit ratings due to financial weakness.
3. The bank has more than one banks in a single street in many locations in UK. This was a result of various mergers and acquisitions that the bank underwent.

Following are the Opportunities in Santander UK SWOT Analysis:

1. The bank should work towards improving its customer service. This can help retain existing customers and also grow in the future.
2. The bank can reduce redundant branches and divert those resources towards opening new branches or improving services in existing branches.

3. The bank can attract more customers by introducing innovative schemes such as the 123 product range.

The threats in the SWOT Analysis of Santander UK are as mentioned:

1. The bank is exposed to interest rate risk, that is the bank can face asset-liability mismatch if the interest rates move against it.

2. The bank can face financial hardship if the economic outlook is weak.
3. The bank can be affected adversely by the exchange rate volatility that it faces.

Below are the top 3 competitors of Santander UK:

1.Barclays
2.Lloyds Banking Group
3.RBS