Burgan Bank Swot Analysis

As stated by Ennew and Waite (2013) it is important that the analysis of the external environment is accompanied by an understanding of the internal environment so as to deploy the resources and capabilities effectively and meet the challenges posed by the market place. This can be done by carrying out a SWOT analysis. Understanding the strengths, weaknesses, opportunities and threats will allow us to formulate a strategy which incorporates future courses of action and convert weaknesses into strengths and threats into opportunities. Below is the SWOT matrix for FIMBank in relation to digital banking:

Strengths

Funding support from major shareholder – Burgan Bank and UGB forming part of the KIPCO group have acquired 80% stake

Although FIMBank has a small balance sheet the funding provided by the new shareholder will not hinder the ability for FIMBank to embark on new projects.

Eurozone crisis - the public is still restoring faith in the banking system after the 2008 financial crisis. Hence, some of the clients are limiting their business activities since they are still restraining confidence. With the development of digital mediums the customers will visualise FIMBank as having their best interest at heart and hence, will be more willing to do business with FIMBank.

In order to become a digital bank, FIMBank should leverage digital technology so as to provide an enhanced customer experience that fits the lifestyle of the digital consumer. Hence, it is important that the benefits of the digital and physical world are combined. As argued by Marous (2014), “when engaging with a digital bank, consumers should benefit from the following:

• Shop for a financial institution online or with a mobile device

• Open a new account by using a computer, tablet or mobile device using image capture to save steps

• Communication with their bank through the channel of choice, potentially with live video

As evaluated in the above report through the PESTEL, 5 forces and SWOT analysis one can conclude that the development of digital banking systems will be beneficial for FIMBank since although the emergence of the digital consumer gives rise to new opportunities most banks have not yet developed a consolidated offering that equals those offered by other industries. Hence, by providing an innovative digital banking service FIMBank can still attain first mover advantage, increase its market share and in turn increase its profits. Moreover, it is important for FIMBank to recognise the fact that digital banking is more than getting customers to use the service provided it is rather a matter of how to run the whole organisation since all delivery channels should be configured in order to provide a virtuous customer