In the previous article, we did an in-depth SWOT analysis on the U.S Bank. Today we are here with another detailed SWOT Analysis of the Bank of Montreal, one of the most dominant banks in Canada.
Bank of Montreal is the 4th largest in Canada and the 8th largest financial institution in North America. The bank was established in 1817, which makes it Canada’s oldest bank. To date, the bank has served more than 12 million-plus customers globally. The bank is ranked at 107 positions by Forbes Global 2000.
The bank has maintained its position amongst the Canadian market with all its efforts from sponsoring many sports events to cutting off the interest rates of credit cards when the world was hit with the pandemic. The bank had the best marketing plans to cater to everyone possible. This shows the importance of how marketing plays a vital role in sustaining the global market. Talking about marketing check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we go in-depth in the SWOT analysis of Bank of Montreal, let’s understand the bank as a company.
About Bank of Montreal
(Banque de Montreal Head Office, Source: Wikimedia)
Founded in Montreal, Quebec in the year 1817, initially based out in the Canadian market with its best operations and success over time the bank started acquiring another small scale as well as large scale financial services to reach out the global market. It is named differently in different countries by BMO Harris Bank in the US Market. BMO is the first Canadian bank to be listed on the New York stock exchange. The growth this bank obtained from day one was very appreciable with a whole lot of efforts to global markets.
| Founder | John Richardson, Horatio Gates/td> |
|---|---|
| Year Founded | 1817 |
| Origin | Montreal, Lower Canada |
| No. of Employees | 43,863 (2021) |
| Company Type | Private |
| Market Cap | CAD$ 68.65 Billion (2021) |
| Annual Revenue | CAD$ 25.2 Billion (2021) |
| Net Income/ Profit | CAD$ 7.8 Billion (2021) |
Products & Services of Bank of Montreal
With more than 12 million customers and over 900 branches globally, the bank offers a wide range of products and services:
- Personal and commercial banking
- Wealth management
- Investment services
- Financial planning
- Credit cards
- Insurance
- Mortgages
Competitors of Bank of Montreal
Because of its global presence, the bank has a large competition in the Canadian as well as the global market.
- Banco Santander
- Royal Bank of Canada
- Scotiabank
- Canadian Imperial Bank of Commerce
- JP Morgan Chase & Co.
Now since we learned about the bank, let us have a look at the SWOT Analysis of Bank of Montreal.
SWOT Analysis of Bank of Montreal
SWOT analysis of Bank of Montreal is the study of strengths, weaknesses, opportunities, and threats of the company. This will help the company understand strong factors for their growth, weakness, and threats to rectify them for further growth.
To better understand the SWOT analysis of Bank of Montreal, refer to the infographics below:
Below is a step-by-step detailed guide to help you with the SWOT analysis of Bank of Montreal.
Strengths of Bank of Montreal
Certain abilities of an organization that are advantageous in capturing market share, attracting more customers, and maximising profits can be called the strengths of that organization.
- Extensive Network: The bank has more than 43,000 employees with a global presence of 12+ countries with a very wide range of products and services.
- Wide Range of Portfolio: The variety of products and services the bank offers acts as one of their strengths wherein they can be benefited from one of the products even if another product fails in the market.
- Awards & Recognition: The Bank is the best investment bank in Canada according to Global Financial Magazine. Also, not only in Canada but the bank is amongst the top 10 North American banks in terms of assets and market capitalization.
- Brand Reputation: Bank of Montreal has been in the business of banking for a large number of years. Also, with the variety of products and services it provides, it is established as a leader in the industry. This helps the corporation to gain a reputation and get recognized easily.
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- Strong in Acquisitions: Recently, the Bank of Montreal has signed the papers to acquire BNP Paribas SA a U.S. Bank unit for the valuation of $16.3 Billion in cash. This shows the Bank of Montreal is strong in terms of capital and acquisitions.
- Strong Digital Marketing Strategy: With a very strong online presence on every social media site has built a strong customer relationship. Want to know how social media works as a strength for Bank of Montreal? Then you must check out the benefits of social media marketing to get the answer to your query.
- Automation of Activities: Successful automation of banking activities with a well-developed IT structure and Infrastructure has made the overall efficiency better.
- Sponsor of Many Sporting Events: Bank of Montreal sponsors professional sports teams in both Canada and U.S. which includes the national hockey and basketball teams.
Weaknesses of Bank of Montreal
The weakness of the Bank of Montreal are listed below:
- Limited Success Across the Core Business: Although Bank of Montreal is one of the leading organizations in its industry it faces challenges in moving to other product segments with its present culture.
- Cash Flow Problems: There is a lack of proper financial planning at Bank of Montreal regarding cash flows, leading to certain circumstances where there isn’t enough cash flow as required leading to unnecessary unplanned borrowing.
- Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas Bank of Montreal needs to invest more money in technology to integrate the processes across the board. Currently, the investment in technology is not on par as per the vision of the company.
- Customer Service: Improper customer service, as well as lack of solving customer queries, can cause a negative image of the brand. This can either be through mouth publicity or by any other means.
- Depend on Canada & US: Bank of Montreal global presence is not up to the mark. The bank is dependent more on Canada & US. Also, the Bank of Montreal lags behind the top 3 Canadian banks in terms of several branches.
Opportunities of Bank of Montreal
The opportunities of the Bank of Montreal are listed below:
- Expansion to Other Global Markets: The company is planning to expand to more developing countries as well as Arab nations too. This serves them as an opportunity to acquire a new customer base.
- Development of Technology: Since the FinTech industry is growing at a very rapid pace, there are advancements in technologies too. Using these kinds of technologies can increase efficiency and decrease cost.
- Increasing Income: There has been an increase in average household income along with an increase in consumer spending following the recession. This will result in growth in Bank of Montreal’s target market with new customers that can be attracted towards the business.
- Population: The population has been growing and is expected to grow at a positive rate for the upcoming years. This is beneficial for Bank of Montreal as there will be an increase in the number of potential customers that it can target.
- Interest Rate: Lower interest rates than compared to previous years provides an opportunity for Bank of Montreal to undergo expansion projects that are financed with loans at a cheaper interest rate.
- Low Inflation Rate: The low inflation rate can bring more stability in the market and enable credit at a lower interest rate to the customers of Bank of Montreal.
Threats of Bank of Montreal
The threats faced by the Bank of Montreal are listed below:
- Competitor Technical Advancements: New technological advancements by a few competitors within the sector constitute a threat to Bank of Montreal since customers who are drawn to this new technology may switch to competitors, reducing Bank of Montreal’s overall market share.
- Pandemic: Financial losses incurred by companies as well as individuals can cause a threat to the bank in repayment of loans.
- Increased Marketing Efforts: Due to the rise of digital marketing, there is an increasing number of promotional messages which are being sent by competitors. It clutters up the space, which leads to losing out on customers. You must also be well versed with a variety of digital marketing skills to get ahead of the competition.
- Regulatory Changes: Regulatory changes and economic uncertainties in Canada and the US will have a significant effect on the Bank of Montreal.
This ends our detailed SWOT analysis of Bank of Montreal. Let us conclude our learning below.
To Conclude
Bank of Montreal is growing in the sector of banking in Canada, the US, as well as the global market too. As we had a look at the SWOT Analysis of the Bank of Montreal, there is a lot more to grow in many aspects.
With the emergence of the digital world, where almost every individual spends at least an hour of his/her time on phones, proper digital marketing and online presence can be a great way to improve customer relations.
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We hope this blog on the SWOT Analysis of Bank of Montreal has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also read our comprehensive study on the SWOT Analysis of JP Morgan Chase.
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