The Co-operative Bank SWOT Analysis, USP & Competitors

The Co-operative Bank

Parent Company

A subsidiary of Consumer cooperative

Category

Banking and financial services

Sector

Banking & Financial Services

Tagline/ Slogan

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USP

The bank which practices ethical banking methods.

The Co-operative Bank STP

Segment

British savers and home owners.

Target Group

British individuals in need for financial services.

Positioning

The bank positions itself as a ethical bank.

The Co-operative Bank SWOT Analysis

Strengths

1. The bank has a ethical policy which prevents it from investing in companies involved in arms trade, genetic engineering, fossil fuel extraction etc. The ethical policy is part of the banks constitution.

2. Smile, the internet-only operation of the bank is among one of the top rated services in UK by consumers
3. The bank offers a variety of retail banking services such as current accounts, mortgages, loans, credit cards, investments etc.
4. The bank caters to a wide customer base including individuals, businessmen, corporate customers etc.

5. The bank provides its customers with latest facilities like internet banking facility and mobile banking facility.

Weaknesses

1. The bank had to face a severe financial crisis which saw it being taken over by US hedge funds.
2. Moody’s downgraded its credit rating by 6 notches to junk category
3. The bank has recently closed a lot of its branches and also terminated its off shore activities.

Opportunities

1. The bank has come up with schemes such as the “Golden Hello” to win back customers after its 2013 financial crisis.

2. The bank should introduce new products and schemes to bring in new customers. It should also build relationships with existing customers to retain them.
3. The bank should come up with better governance and be more transparent, in order to restore customer confidence in the processes of the bank.

Threats

1. A more robust accounting system needs to be put in place. It was found that the bank had a hole in its finances. Such scandals can erode customer confidence in the bank.
2. Default risk which is the risk that the bank may run into losses due to the counter party defaulting on their liabilities.
3. A bad economic outlook can cause serious damage to the financial situation of the bank.

4. The bank faces threat of running out of capital to run its day to day business due to the severe financial crisis it is going through.

The Co-operative Bank Competition

Competitors

1. Standard Chartered Bank
2. Lloyds Banking Group
3. RBS.