Simplified SWOT Analysis of CIMB Bank with Complete Company Overview

Last time we saw the Marketing Strategies of Axis Bank, this time we will look at the SWOT Analysis of Cimb Bank.

Cimb Bank was founded in Kuala Lumpur, Malaysia, in 1974. The CIMB Group’s businesses include a well-known consumer bank, a prominent regional investment bank, and an Islamic bank. CIMB Bank is the Group’s commercial bank.

The bank is growing and getting visibility due to its effective strategies and marketing. Online presence and digital marketing are very important in today’s world for growing a business. To know more about digital marketing and its different attributes, do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

If you’re as curious as we are about Cimb Bank’s success formula, you’ve come to the right place. We’ll learn about the Third-Partystrengths, weaknesses, opportunities and threats of the Cimb Bank, but before that let us look at the company.

About Cimb Bank

The Cimb Group was established in Malaysia in 1974 and is headquartered in Kuala Lumpur. It operates a consumer bank, a top regional investment bank, and an Islamic bank. Cimb Bank is the Group’s full-service bank, with 234 branches across Malaysia making banking convenient and simple.

The company’s subsidiaries include CIMB Investment Bank, CIMB Bank, and CIMB Islamic. Consumer Banking, which comprises Investment Banking and Corporate Banking, Treasury & Markets Group Strategy, and Strategic Investments, are the group’s major business activities, with Malaysia, Indonesia, Singapore, and Thailand as its primary markets. CIMB Islamic is a firm that focuses on Islamic banking. In line with the group’s dual banking approach, both companies will run concurrently.

The company operates in 18 countries, including ASEAN (Association of Southeast Asian Nations), major global financial centers, and places where its customers do significant business and invest.

 

Quick Stats about Cimb Bank

 

Services provided by Cimb Bank

Bank of Maharashtra provides services in the following areas:

• Consumer Banking 
• Corporate Banking 
•  Investment Banking 
• Islamic Banking 
• Asset Management

Competitors of Cimb Bank

There are numerous players in the banking industry, the top 5 competitors are as follows:

• Malayan Banking Berhad
• RHB Bank Berhad
• AmBank Group
• OCBC Bank
• TBC Bank

 

Buyer Persona of CIMB Bank

SWOT Analysis of Cimb Bank

SWOT stands for Strengths, Weaknesses, Opportunities, Threats. It is used as a tool to know and analyze the market position and general health of a business. It is extremely useful and is done by every old as well as a new business to determine the most effective future path.

Analyzing the external opportunities and threats may also help to know the necessary steps that could be taken to make provisions and develop strategies.

 

1. Strengths of Cimb Bank

The Strengths are basically what they are capable of and the resources that they can leverage to have a competitive advantage over others.

• Diverse Business Mix – Cimb Bank Labuan is a firm that offers investment, Islamic, and private banking products and services to customers all over the world. They also offer asset management, wealth management, insurance products and services, foreign exchange, and fund management services, among other things.
• Variety – Cimb bank is a multinational corporation that operates under a variety of business models, including Securities International and CIMB Thai. The strength of this Malaysian banking company, as well as CIMB bank in Labuan, is the CIMB Group’s concept.

• Largest Financial Service Provider –  With around 12 million customers, they are the leading universal banking groups in ASEAN by assets. They have proven their worth as a prominent player in the financial industry. CIMB’s lengthy history of participation in the Bursa Malaysia has reinforced its position as one of the industry’s leading universal banking firms. 

 

2. Weaknesses of Cimb Bank

Weaknesses generally arrive when one is lacking in resources may it be in terms of finance or physical resources such as land, building, workforce, etc. Weaknesses hinder the pace of development and limit the ability of the firm.

• Under- Performance – GAM was in charge of the CIMB group’s investment management business. GAM manages institutional and retail funds across a wide range of asset classes and locations, both conventional and Shari’a-compliant.
• Third-Party Control – The Insurance and Takaful Group was in charge of all Cimb Group insurance and Takaful joint ventures, as well as the Development of Bank Assurance. Because their insurance and Takaful were administered by a third party, the company has become vulnerable, and this issue would affect all Cimb bank locations.
• Rise in Non-Performing Loans – The growth in non-performing loans and loan loss provision is one of CIMB Bank Labuan’s significant flaws. The non-performing loan ratio has decreased by 2.0 percent from 2.3 percent in 2009 to all-time, while loss coverage has increased to 90.85 percent from 86.7 percent in the preceding quarter of 2011. 

 

3. Opportunities of Cimb Bank

Opportunities are factors where a company can leverage the advantages existing in the market to expand itself. Some external factors such as changes in policies and changes in customer preferences are the ones of utmost importance in any industry.

• Expansion – CIMB Group’s entry into the worldwide Islamic finance sector will open up a slew of options, as Cimb Islamic is the company’s most well-known brand. This company does a lot of work in shari’a advisory, the debt market, and other areas. In Islamic Banking management, the CIMB group business has a stronger demand from the banking industry and a larger customer base.
• Investment Opportunity – The economy of Sri Lanka is in good shape, with a GDP growth of 4.85 percent over the last 30 years, and this will provide an opportunity for the CIMB group to invest there. GDP per capita climbed from US$ 1244 in 2005 to US$ 2863 in 2010, more than double that of India in the same five years.

 

4. Threats of Cimb Bank

Threats are also external factors that are not in control of a company. However, studying the causes and making changes to avoid it partially can also be a relief. 

• Fierce Competition – Cimb Bank has the opportunity to compete with other multinational and national banks as one of Asia’s leading banks. RHB Bank, Maybank, and AmBank, for example, are all competitors for CIMB. As time passes, other banks will emerge, increasing the number of Cimb’’s competitors. As a result of these existing competitors, market growth is constrained for Cimb Bank.
• Many Alternatives – Another challenge that Cimb must deal with is competitors that offer clients the same service. For example, Cimb Islamic Bank and Public Bank both offer Islamic banking services to their customers. The bank should show promising services to gain a loyal customer base.
• Fluctuations in Foreign Rates  – As a financial institution that deals with currency, the bank should be prepared to deal with the risk of an unpredictable foreign exchange rate. This occurs as a result of the fluctuating foreign currency rate, which is always based on the present circumstances throughout the world. 

Conclusion

Although Cimb faces competition from other service providers such as Maybank and RHB Bank, it has been able to always be the consumer’s first choice because of its strong foundation and adaptability to trends.

It does not stop here as they do have threats to overcome. However, as discussed in the strengths, Cimb Bank’s marketing strategy has made them have an edge over others, and with the advent of digital marketing, Cimb has an opportunity to react quickly and build a strong base of itself digitally. IIDE provides many short-term certified courses in digital marketing which can be completed in less than a week.

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