The Co-operative Bank SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of The Co-operative 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 The Co-operative Bank to benchmark its business & performance as compared to the competitors, and make strategic improvements. The Co-operative Bank is one of the leading brands in the banking & financial services sector.
The article below lists the The Co-operative Bank SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the The Co-operative Bank SWOT Analysis:
In this article:
For The Co-operative 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.
The strengths of The Co-operative 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 The Co-operative Bank :
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.
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 The Co-operative Bank SWOT Analysis:
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.
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 The Co-operative Bank SWOT Analysis:
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.
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 The Co-operative Bank are as mentioned:
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.
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of The Co-operative Bank:
1. Standard Chartered Bank
2. Lloyds Banking Group
Hence this concludes the The Co-operative Bank SWOT analysis.
Continue reading more about the brand/company.
|The Co-operative Bank Overview|
A subsidiary of Consumer cooperative
Banking and financial services
The bank which practices ethical banking methods.
|The Co-operative Bank STP|
British savers and home owners.
British individuals in need for financial services.
The bank positions itself as a ethical bank.
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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