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Elaborative SWOT Analysis of TD Bank – A Canadian Multinational Banking & Financial Services

Updated on: Jan 16, 2022
SWOT Analysis of TD Bank - Featured Image

In the previous article, we did a detailed SWOT analysis of the Bank of Montreal – one of the most dominant banks in Canada. Today we are here with another detailed SWOT Analysis of TD Bank.

TD Bank is a Canadian multinational financial services bank based in Toronto, Ontario. TD Bank is the largest bank in Canada and one of the major Canadian international banks. The Bank’s evolution has offered an opportunity to explore two centuries of banking history, with that of Canada and the world as a whole.

TD Bank is one of many large banks that has increased its digital banking activity in recent years. Their mobile banking app received top marks for providing the greatest customer service. If you’re interested in acquiring digital marketing abilities but don’t know where to begin, our CEO and Founder of IIDE, Karan Shah offers a brief Masterclass on Digital Marketing 101 and it is free of charge.

Before we go into the SWOT Analysis of TD Bank, let us know about TD Bank as a company.

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About TD Bank

SWOT Analysis of TD Bank - TD Bank

With the mergers between predecessor companies Bank of Toronto and The Dominion Bank the name came, Toronto-Dominion Bank is a Canadian financial service and multinational banking company founded in 1955 headquartered in Toronto, Ontario. It has a proud heritage of more than 165 years old as its predecessors and 65 years old as TD, it is among the top 10 big banks in North America, and the largest banking group in the Canadian region.

Over 26 million clients are served with banking and financial services by the financial institute, which employs over 89,000 people globally. TD Bank serves consumer and business banking services via 1,200 branches throughout its operations in Canada and the United States. TD Bank, in addition to banking services, provides investing services.

 

Quick Stats on TD Bank
Founder Bank of Toronto & The Dominion Bank
Year Founded 1955
Origin Toronto, Ontario, Canada
No. of Employees 90,000+
Company Type Public
Market Cap CA$148.96 Billion (2021)
Annual Revenue CA$42.69 Billion (2021)
Net Income/ Profit CA$14.3 Billion (2021)

 

SWOT Analysis of TD Bank - TD Canada Trust, Self Service ATM


Products & Services by TD Bank

With approximately 26 million clients through its network of 1,200 branches. Here are some of the products and services TD Bank have to offer: 

  • Retail banking
  • Corporate banking
  • Investment banking
  • Mortgage loans
  • Private banking
  • Wealth management
  • Credit cards
  • Finance and insurance


Competitors of TD Bank
                                                     

TD Bank brings huge competition for itself, as it provides services in the whole world. Below mentioned are some of the competitors for TD Bank:      

  • RBC
  • BMO
  • RBCuisse
  • Scotia Bank
  • Vancity


Now that we already know the company’s core business, let’s dive into the SWOT Analysis of TD Bank.


SWOT Analysis of TD Bank

SWOT analysis of TD Bank 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 TD Bank, refer to the infographics below:

SWOT Analysis of TD Bank - SWOT Infographics of TD Bank

Below is a step-by-step detailed guide to help you with the SWOT analysis of TD Bank.

Strengths of TD Bank

TD Bank, 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.

  • Extensive Network: The bank has more than 90,000 employees at 1,200+ branches in Canada & North America, making TD Bank the 23rd largest bank in the world.
  • Wide Range of Portfolio: The variety of personal banking and financial services the bank offers acts as one of their strengths wherein they can be benefited from various offerings.
  • Brand Reputation: TD Bank has been in the business of banking for a large number of years. Also, with the variety of secure services, it provides such as TD’s digital payments with Zelle which is backed with secured digital channels to provide its users to securely transact with TD Bank. These big steps made TD Bank established as a leader in the industry. This helps the corporation to gain a reputation and get recognized easily.

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  • 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 TD Bank? Then you must check out the benefits of social media marketing to get the answer to your query. 
  • Best in its Country: The Bank is the best in Canada in terms of multinational banking and financial services. Also, it is positioned at No.1 as the best Canadian bank which in itself is one of the biggest strengths for the company.
  • Goods Returns on Capital Expenditure: TD Bank is relatively successful at executing net income of CA$14.3 Billion from annual revenue of CA$42.69 Billion.


Weakness of TD Bank

Weakness is the area where TD Bank can improve upon by building strategies. Below mentioned are the weakness of TD Bank:

  • Limited Success Across the Core Business: Although TD Bank 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 TD Bank 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 TD Bank 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: TD Bank’s global presence is not up to the mark. The bank is dependent more on Canada & US. Also, TD Bank lags behind the top Canadian banks in terms of several branches. 


Opportunities for TD Bank

Opportunities are external factors that allow an organisation to grow and be more profitable. Following are some opportunities for TD Bank:

  • Several Acquisitions: The acquisition of MBNA the previous year will support TD Bank to grow the credit card business in the US and Canada which will ultimately lead to growth in customer base.
  • More Expansion in the US: Creating the network of retail banks in the US will help the bank to expand in the US. Also, TD Bank’s wealth and insurance business in the US will become one of the huge opportunities for the whole company.
  • New Clients from Online Channels: The company has invested a significant amount of money in the internet platform during the last few years. This speculation has provided TD Bank with a fresh deal channel. In the coming years, the company may take advantage of this opportunity by better understanding its customers and meeting their needs through massive data analysis.
  • Moderate Growth Rate: Following a moderate growth rate in the business, a financial uptick and increase in client spending provide an opportunity for TD Bank to attract new clients and increase its share of the total industry.
  • 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.


Threats to TD Bank

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 TD Bank are as follows:

  • Regulatory Charges: The bank belongs mainly from North America and TD Bank is mainly focusing on expanding its business more in the United States. While taking advantage of this the government can charge regulatory fees for the same. 
  • Competitor Technical Advancements: New technological advancements by a few competitors within the sector constitutes a threat to TD Bank since customers who are drawn to this new technology may switch to competitors, reducing TD Bank’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. TD Bank 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. 
  • Rising Controversies: TD Bank has been in several controversies as in 2010 TD Bank has intentionally mismarked its trading positions in the UK which caused TD Bank to pay the fine of £750,000 to the Financial Services Authority. Such controversies if continued can negatively affect the business of TD Bank.


Now that we have come to the end of this thorough SWOT Analysis of TD Bank. Let’s see the summation of this article in the conclusion.

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To Conclude

TD Bank 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 TD Bank, 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 TD Bank 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.

If you enjoy in-depth company research just like the SWOT analysis of TD Bank, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of TD Bank in the comments section below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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