Tesco Bank SWOT Analysis, Competitors & USP

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

Tesco Bank SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of Tesco Bank, 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 Tesco Bank to benchmark its business & performance as compared to the competitors, and make strategic improvements. Tesco Bank is one of the leading brands in the banking & financial services sector.

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

SWOT Analysis of Tesco Bank

For Tesco Bank, 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.

Tesco Bank Strengths

The strengths of Tesco Bank 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 Tesco Bank :

1. The bank offers a wide range of services including insurance, credit cards, loans, savings, mortgages and travel products.
2. The bank has a very strong customer base of over 7+ million customers.

3. The bank sees a cumulative customer spending of over £1bn through its credit cards
4. The bank provides services online or through phone 24x7. This makes it very convenient for the customers to carry out their banking transactions.

5. The bank is supported by one of the largest retail giants – Tesco.

6. The bank has shown commendable growth over the years, with

Tesco Bank 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 Tesco Bank SWOT Analysis:

1. A relatively new bank compared to its competitors which have lasted for several decades if not more.

2. The bank has very few offices in UK - in-store branches in few places only
3. Some customers may not value the tie-up scheme with Clubcard and other Tesco related schemes.

Tesco Bank 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 Tesco Bank SWOT Analysis:

1. The bank has plans of opening current account services soon. This will increase its value to current and future customers.
2. As a new bank, it has a lot of opportunity to bring in customers through launch of new products such as the fixed rate savings scheme that it launched in 2010.
3. The bank can increase its transactions by tie-in schemes with Tesco retail.

Tesco Bank 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 Tesco Bank are as mentioned:

1. Liquidity risk, which is the risk that the bank may not be able to meet its liabilities as and when the liabilities mature
2. Default risk, which is the risk that the counter party may not be able to meet its obligations, resulting in losses for the bank.

3. A bad economic outlook can adversely affect the revenue of the bank.

Tesco Bank Competitors

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

2. Lloyds Banking Group
3. First Direct

Hence this concludes the Tesco Bank SWOT analysis.

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About Tesco Bank

Tesco Bank Overview
Parent Company

Tesco Personal Finance Group Limited


Banking and Financial services


Banking & Financial Services

Tagline/ Slogan



The bank is able to cross sell its financial services products to its wide customer base (using Tesco Clubcard points)

Tesco Bank STP

British nationals interested in personal financials services.

Target Market

British nationals in need of financial services such as loans, insurance etc.


A bank which provides simple, straightforward banking products which provide good value and also rewards loyalty.

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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