Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of Santander UK analyses the brand by its strengths, weaknesses, opportunities & threats. In Santander UK 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 Santander UK to benchmark its business & performance as compared to the competitors. Santander UK is one of the leading brands in the banking & financial services sector.
The table below lists the Santander UK SWOT (Strengths, Weaknesses, Opportunities, Threats), top Santander UK competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
Large customer base and reach through large number of branches.
Santander UK STP
British homeowners, savers and corporate
British individuals, businessmen, and corporate
A bank which is one of the leading providers of personal financial services.
SWOT Analysis of Santander UK
Santander UK Strengths
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.
Santander UK Weaknesses
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.
Santander UK Opportunities
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.
Santander UK Threats
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.
Santander UK Competition
Santander UK Competitors
Below are the top 3 competitors of Santander UK:
1.Barclays 2.Lloyds Banking Group 3.RBS
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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