Description
SWOT ANALYSIS OF VOLKSBANK

Volksbank

Parent Company

Volksbank AG

Category

Regional Banks

Sector

Banking and Financial Services

Tagline/ Slogan

Peoples Bank

USP

One of the most prominent retail banks in Austria

STP

Segment

Corporates, stock market, Real estate and financial markets

Target Group

Stock market and financial markets

Positioning

Providing latest technologies for smooth functioning of various services

SWOT Analysis

1. Able to provide good service to its customers through its strong employee base of about 2,000 employees 2. Due to employee friendly HR policies, the staff turnover has increased considerably 3. The sale of Volksbank International led to a significant decrease in the risk-weighted assets and hence reducing the group’s risk by a considerable extent Strength 4. International presence in Austria, Hungary, Romania and Malta

1. The company operates only in few countries hence limited global exposure 2. Lack of investor interest in the bank as it was not providing dividends and thereby leading to a lesser share price which translated into less market capitalization 3. Inappropriate security measures which led to many incidences of Weakness robbery

1. Early estimates indicate that the GDP would grow and this provides an opportunity to capitalize on the investment segment Opportunity 2. Owing to the threat of money laundering and financing terrorist activities, the group must improve its fraud detection systems in order to

ensure compliance 3. At present, it is not focused on research and development and this situation should be averted so that more user friendly products are developed

1. Less money would be available with the banks as there is less money available with the consumers who are suffering from high levels of unemployment and lesser salaries due to a weak economy 2. After the Eurozone crisis, the interest rates for the deposit facility has been cut by 25 basis points to 0.00% which reduced the money available with the bank 3. Net fee and commission income has reduced. This is because of weak Threats investment climate in the market

Competition

1. Bank fuer Tirol und V orarlberg, Aktiengesellschaft, Innsbruck 2. Oesterreichische V olksbanken AG Competitors 3. Raiffeisenlandesbank Oberoesterreich reg.GenmbH



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