In our previous blog, we did a detailed SWOT Analysis of JP Morgan Chase. Check this out to know more about every marketing aspect of JP Morgan Chase.
In this blog, we are going to break down the SWOT analysis of Deutsche Bank. The objective is to gain insights into the bank and its journey to becoming a powerful bank.
Deutsche Bank is one of the leading banks in Germany. The dominant position of the bank is maintained by Deutsche bank by meticulously analyzing and assessing the SWOT of the company. The bank with the slogan “A Passion to Perform” has been magnificent in the light. Deutsche Bank is the bank that brought changes in the market.
The reason how this bank grew so big and the strategy behind the growth is it’s implementing some of the most successful marketing techniques using digital platforms as most of the customers are online nowadays. So if you are interested in learning the latest skills in digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Before we go into the SWOT Analysis of Deutsche Bank, let’s look at the organization’s odyssey from the first time till now.
About Deutsche Bank
(Picture Of First Deutsche Bank in 1870, Source: Google Images)
Founded in 1870, the Deutsche Bank specialises in financing foreign trade and boosting German exports. It eventually played a very big role in developing german industries as the basis of the business model of the bank is to provide finances to german industries.
(Deutsche Bank Statue, Source: CNBC)
The statute of the bank was adopted on 22 January 1970, and it was granted the banking license on 10 March 1870 by the Prussian government. The emphasis of the statute laid on foreign business.
The emphasis of the company is to facilitate the business of all kinds, in particular. The objective is to stimulate and promote trade relations between Germany and other European countries and other overseas markets.
| Founder | Georg Siemens, Adelbert Delbrück, Ludwig Bamberger |
|---|---|
| Year Founded | 1869 |
| Origin | Berlin |
| No. of Employees | 83,797 |
| Company Type | Public |
| Market Cap | € 22.89 Billion (2021) |
| Annual Revenue | € 24.028 Billion (2020) |
| Net Income/ Profit | € 624 Million (2020) |
Services By Deutsche Bank
- Investment Banking
- Corporate Banking
- Asset Management
- Commercial Banking
- Private Banking
Competitors Of Deutsche Bank
- Citi
- JP Morgan Chase
- HSBC Bank
- DNB
- BNY Mellon
SWOT Analysis of Deutsche Bank
The SWOT analysis of Deutsche Bank is known as a strategic planning tool that is used by managers of Deutsche bank to do a complete circumstantial analysis of the bank. It is a convenient technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Deutsche Bank is facing in its current business environment.
Now first let’s begin with the strengths of the company from the SWOT analysis of Deutsche Bank.
Strengths of Deutsche Bank
- Strong Brand Portfolio: It has a strong brand portfolio. Over the years the bank has invested in building a good brand portfolio and has a good financial position.
- Good Dividend on Capital Expenditure: Deutsche Bank is relatively successful at the execution of new projects and generated good dividends on capital expenditure by building new interest streams.
- Highly Skilled European Bank: The Company has an indigenous base in Germany, Europe’s largest economy. Corporate Banking and Securities, Asset and Wealth Management, Global Transaction Banking, Non-Core Operations Unit and Private & Business Clients.
- Market Share: With a market share of 21 per cent, Deutsche Bank is the largest foreign exchange dealer in the world.
- Customer Gratification: The company with its committed customer relationship management department has been able to achieve a high level of customer gratification among present customers and good brand equity among the budding customers.
Weakness of Deutsche Bank
- Intense Competition: The bank is facing very intense competition from other leading banks as every bank is keen to capture the market.
- Restricted Reach: Since the organization is predominantly established in European markets so it has become difficult in capitalizing on the markets of developing nations.
- Inaccurate Marketing Proportions: Its USP is not clearly defined, making it difficult to compete with other established organizations that spend a large amount on marketing.
- Incorrect Financial Planning: Due to inappropriate financial planning the company is using less cash as suggested by liquid and asset ratio which can create obstacles in the company’s future financial goals.
- High Attrition Rate: The higher attrition rate is resulting in high spending in training and development of its employees which is not reasonable compared to other organizations.
Opportunities for Deutsche Bank
- Global Augmentation: For achieving future financial goals the company must expand its offices in both developed and developing countries.
- Universal Mergers and Joint Ventures: The company must do mergers with local organizations of the country as it can create a good opportunity for their expansion.
- Adapting to Customer Needs: With changing lifestyles of customers organizations must reform their policies according to customer needs because adaptation is key to survival.
- Inculcating New Technology: Introducing new technology will enable the organization in acquiring the loyalty of its existing customers and will also attract new customers.
- Digital Platform: Creating a digital platform for the marketing of an organization can help in penetrating the markets of various countries like India, Mexico which can be a boon for the organization.
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Threats to Deutsche Bank
- The Establishment of New Fin-tech Firms: Fintech firms are firmly capturing the markets which are creating head-on competition to the banks as it can affect the desired acquisitions of organizations.
- Revising Government Rules: Due to changing rules and forming new policies relating to various sectors of banks by the government, the organization has to face difficulty in adapting to them.
- Regulatory Reforms of Various Countries: Due to increased regulatory scrutiny and restriction in new policies the bank has to operate in a highly appropriate manner which is affecting its growth.
- Insufficiency of Skilled Workforce: Shortage of skilled workforce can affect the stable growth of profits and it poses a threat to the organization in the global market as the organization will face rigid competition from skilled workers of other organizations.
This ends by explaining the SWOT analysis of Deutsche Bank. Let us conclude our learnings below.
To Conclude
As we can see that 21st century is the era of digitalization and marketing along with technological advancement so the bank has to maintain the equilibrium of reinstating the outdated products along with innovating the new products which can build an impression on not only its established customers but also on the customers who plan to spend their time and money in the bank.
The dynamic approach of working together with the government and other local organizations can inevitably increase the profits of the bank and it can also achieve its long term financial goals. The bank has to work while reforming its policies according to customer needs because ultimately it’s their passion to perform.
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