Comprehensive SWOT Analysis of Edelweiss Financial Services – An Investment & Financial Services Company

Quick Stats on Edelweiss Financial Services

Founder	Rashesh Shah & Venkat Ramaswamy
Year Founded	1995
Origin	Mumbai, Maharashtra
No. of Employees	11,000+
Company Type	Public
Market Cap	Rs 5,781.19 Crore (2022)
Annual Revenue	Rs 1,366 Million (2019)
Net Income/ Profit	Rs 253.91 Crore (2020)

 

Products & Services by Edelweiss Financial Services

Here are some products and services Edelweiss Financial Services has to offer: 

• General insurance
• Life insurance
• Mortgage loans
• Investment banking
• Investment management
• Wealth management
• Asset management
• Mutual fund

Competitors of Edelweiss Financial Services 

• Goldman Sachs
• Morgan Stanley
• First Eagle
• ICICI Bank

Now since we learned about the bank, let us have a look at the SWOT Analysis of Edelweiss Financial Services.

SWOT Analysis of Edelweiss Financial Services

SWOT analysis of Edelweiss Financial Services is an examination of the company’s strengths, weaknesses, opportunities, and threats. This allows the organisation to understand its market position, as well as what areas need to be addressed and where it can shine. It also aids the corporation in strategizing its business framework and elements affecting its growth.

To better understand the SWOT analysis of Edelweiss Financial Services, refer to the infographics below:

Below is a step-by-step detailed guide to help you with the SWOT analysis of Edelweiss Financial Services.

Strengths of Edelweiss Financial Services

Edelweiss Financial Services, being one of the industry’s leading corporations has several advantages that enable it to prosper in the marketplace. These advantages not only assist it in retaining market share in existing areas but also in expanding into new ones.

• Faster Claim Settlement: Claim settlement Ratio of Edelweiss Financial Services is 83.44%. The claim settlement process of Edelweiss  Financial Services is very simple.
• Branch & Advisor Network: Edelweiss Financial Services has 51723 insurance advisors. Edelweiss financial services have 121 branches and are present in 90 cities. Edelweiss is giving a good commission to its advisors for promoting their products.
• Brand Ambassador: Brand Ambassador of Edelweiss Financial Services is Saina Nehwal through which the company gets significant brand recognition. Edelweiss Financial Services is also the insurer of the Indian Olympics team.
• Awards and Recognition: Edelweiss Financial Services had won various awards like Best Life Insurer Award, also won an innovation award for wealth Ultima.
• Service Quality: Quality of Services and Schemes is the key to Edelweiss Financial Services’ success. Edelweiss Financial Services has a customer-centric approach. The highest governance standards enable us to deliver quality services to our customers.
• Insurance Premium: The insurance premium of Edelweiss Financial Services is very competitive. Various types of Premium payment options are available in Edelweiss  Financial Services.
• Robust Training: Company has state of the art infrastructure for training its 11000+ employees and advisors. Edelweiss Financial Services is giving special emphasis on the training of employees and advisors because they are the one who represents the face of the company.
• Acquisitions & Mergers: Edelweiss Financial Services is known for various acquisitions and mergers since its inception including the acquisition of Anagram Capital in 2011, Forefront in 2015 and one of the biggest acquisitions of JP Morgan AMC India in 2016.

Weaknesses of Edelweiss Financial Services

A company’s weaknesses keep it from realising its greatest potential. To assist the company to excel in all areas, one should assess the weaknesses and seek to improve them. 

• Cash Flow Problems: There is a lack of proper monetary planning at Edelweiss Financial Services in regards to cash flows, leading to certain situations where there isn’t suitable cash flow as needed leading to unnecessary unplanned borrowing.
• Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas Edelweiss Financial Services needs to invest more funds in technology to coordinate the processes across the board. Currently, the investment in technology is not on par with the vision of the company.
• Depend on India & Southeast Asia: Edelweiss Financial Services’ global presence is not up to the mark. The bank is dependent more on India & South Asian regions. Also, Edelweiss Financial Services lags behind the top Southeast Asian financial institutions in terms of several branches. 
• Customer Service: Improper customer service, as well as a 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.
• Insurance Consultant: Less command over Insurance Consultants. Before selling the policies some advisors do not provide accurate details about the policies.

Opportunities for Edelweiss Financial Services

Opportunities are external variables that work in the company’s favour, and the company can take advantage of them to grow.

• Multiple Benefits: Customers are also attracted by unit-linked insurance policies because of the multiple benefits of insurance + investment.   Edelweiss Financial Services will take this opportunity aggressively and has designed ULIPS for everyone.
• Increasing Population: India’s population is increasing fast, and the insurable population is still too high and not adequately covered the business in the Indian market thus enjoying tremendous opportunities.
• Partnership with Banks for Bancassurance: Edelweiss Financial Services can launch new insurance partnerships with banks for selling its policies.
• Global Opportunities: A major opportunity for financial service players in the Indian market is the global financial service market, it is inarguably that the global market is worth billions of dollars. Edelweiss Financial Services is mainly focused on the Indian market, so it needs to increase its reach outside the Indian market as well making it gain more customers.
• Interest Rate: Lower interest rates than compared to previous years provides an opportunity for Edelweiss Financial Services to undergo expansion projects that are financed with loans at a cheaper interest rate.

Threats to Edelweiss Financial Services

Threats are external elements that may have an impact on the bank. To avoid inflicting damage to the company, these concerns should be addressed as quickly as feasible. The threats to Edelweiss Financial Services are as follows:

• Global Competitors: If Edelweiss Financial Services wants to expand its business around the world, they have to be careful of what policies they make or how they provide its services in the foreign market or how they market themselves, where already existing local banks are what the people trust in. 
• Increased Marketing Efforts: Due to the rise of digital marketing, there is an increasing number of promotional messages are being sent by competitors. It clutters up the space, which leads to losing out on customers. Edelweiss Financial Services is well versed and trying to adopt a variety of the latest digital marketing skills to get ahead of the competition. You must also check out these skills to achieve the same.
• Uncertain Conditions: The dynamic market environment makes it difficult not only for financial institutes but for every company to be vigilant and to take precautions before any crisis occurs. One other example of an uncertain condition is the Covid pandemic which made most businesses go on a complete shutdown and only visioners were and can take advantage of such situations.
• Financial Risks: Because the company operates in several countries, it is subjected to currency fluctuations, which are exacerbated by the world’s increasingly volatile political climate in a variety of industries.
• Cyber Security: It’s been one of the major risk factors in the financial sector. It is a must for financial systems to have the ability to withstand this cyber-attack by increasing IT  monitoring and control.
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Now that we have come to the end of this thorough SWOT Analysis of Edelweiss Financial Services. Let’s see the summation of this article in the conclusion.