The last time we saw the marketing strategies of Union Bank of India which also included a little overview of the SWOT but this time we will explain the SWOT Analysis of Union Bank of India in an elaborate manner.
Union Bank of India is one of the well known public sector banks of the country. Being one of the oldest banks in India with more than a century of experience, the bank has its branches spread across the nation providing reliable services to millions of customers. It is also popularly known as “Union Bank”.
The marketing strategy of the Union Bank of India includes traditional as well as digital marketing. In today’s time, digital marketing is very important for reaching out to customers as everything is shifting towards digital. If you want to learn digital marketing and its scope, do check out Free Digital Marketing Masterclass by Karan Shah, the founder and CEO of IIDE.
Before we dive into the SWOT Analysis of Union Bank of India, let’s take a look at the company, its history, finances, products, and opponents.
About Union Bank of India
(Managing Director & CEO of UBI – Shri Rajkiran Rai G., Source: Business Insider)
Union Bank of India (UBI) was registered on 11 November 1919 by Seth Sitaram Poddar as a limited listed company in Mumbai and also was inaugurated by Mahatma Gandhi at the time of his rule.
At the time of India’s Independence in 1947, UBI only had four various branches – three in Mumbai at different places and one in Saurashtra. After Independence UBI accelerated its growth and nationalized it in 1969, it had grown to 240 branches in 28 states.
(Andhra Bank and Corporation Bank Merge Into Union Bank of India, Source: ET)
Shri Rajkiran Rai G. is the current Managing Director & CEO of Union Bank of India since July 1st, 2017. Recently, Andhra Bank and Corporation Bank were amalgamated into Union Bank of India with effect from 01 April 2020.
|Founder||Seth Sitaram Poddar|
|No. of Employees||78,202|
|Market Cap||Rs 31,063.93 Crore (2021)|
|Annual Revenue||Rs 80,104.19 Crore (2021)|
|Net Income/ Profit||Rs 2,905.97 Crore (2021)|
Services By Union Bank of India
- Consumer Banking
- Corporate Banking
- Finance & Insurance
- Investment Banking
- Mortgage Loan
- Private Banking
- Wealth Management
Competitors of Union Bank of India
- Indian Bank
- Bank of Baroda
- Corporation Bank
- Canara Bank
- Dena Bank
- Bank of Maharashtra
- Central Bank of India
After understanding the core of the corporate, let us now proceed to the SWOT analysis of Union Bank of India.
SWOT Analysis of Union Bank of India
A SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or a business venture. A good SWOT analysis can help you reach your online marketing goals or kick your business startup into high gear.
To better understand the SWOT analysis of Union Bank of India, refer to the infographic below:
Let’s proceed further with expanding on the strengths of the Union Bank of India from the SWOT analysis of Union Bank of India.
Strengths of Union Bank of India
- Public Bank: Since the bank is a public sector undertaking, it has the backing of the government.
- Efficient Services: The bank is efficient in managing its assets and providing ROA which is also improving over the last 2 years.
- Growing Reach: UBI has a huge geographical presence in the country, thus making it accessible to the customers and increasing its reach to the target market.
- Financially Backing the Agriculture Sector: Financial Facilities for the agricultural sector give a positive push to the agriculture sector to grow more.
- Customers as Main Priority: They emphasise providing benefits to customers. UBI’s main motive is customer satisfaction that’s why UBI comes up with effective financial solutions and home loan services.
- Empowering Employment: Union Bank of India has over 27,700 employees, empowering employment in the nation.
- International Presence: It has representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, People’s Republic of China, Australia and a branch in Hong Kong.
- Easement of Banking: Online Telebanking facilities are available to all its core customers and individuals as well as corporate.
(Union Bank of India Promoting Digital Seva, Source: Twitter)
Bonus Tip: UBI offers online services like UPI app for easing the transaction process, net banking services, U-Control app for credit card users. Digitalisation has benefited customers with a cashless and hassle-free experience while banking. So, isn’t investing in learning digital marketing skills worth the investment? If you think yes, then there are several short-term courses in IIDE that will help you learn about digital marketing and how to leverage its power to grow.
Weaknesses of Union Bank of India
- Less International Presence: Nominal international presence as compared to leading players.
- Lack of Digital Customer Support: They do not respond to their customer’s queries and do not guide them which helps their competitors.
- Less Advertisement Leads to Lower Brand Presence: The bank has to work out more on marketing its services. It has to come up with regular campaigns both online and offline to bring in new customers or to retain existing customers.
Opportunities for Union Bank of India
- Expansion: Union Bank of India needs to expand its presence in the rural market.
- Increasing Investments: Increasing its Non-SLR investments will result in increased profits.
- Interests Rates: UBI can make credit cards more profitable by increasing the interest rate and the non-performing assets can be eased.
- Digitalization: With the Internet, the world has become a smaller place that helps in communication in any part of the world. This helps the bank get into the international market and target the global audience which helps to increase profitability.
- Other Opportunities: Small scale business banking, more global penetration through international banking, acquisition of smaller local banks in India.
Threats to Union Bank of India
- Private Sector Banks are Increasing Its Competition: Private sector banks are developing novel investment packages and thereby gaining market share among retail consumers.
- Economic Crisis: As a result of the economic crisis, clients are not saving money in banks, reducing bank liquidity and making it difficult to operate efficiently.
- Changing Policies: Banking policies are governed by Reserve Bank of India (RBI) laws and regulations, therefore any changes made by the RBI have a direct impact on the bank’s operations.
- High Competition: The primary competitors are Bank of Baroda, Canara Bank, Bank of India, Central Bank, Indian Overseas bank which are performing well.
- Online Banks: Loans are provided online by private banks which pose a threat to the Union Bank of India.
- Tech-Platforms: New-age technology like payment wallets are affecting the business of the bank.
This ends our study on the SWOT analysis of Union Bank of India. Let us conclude our learning below.
To sum up, UBI has a huge mass of incredibly innovative services providing enough options. The company has the advantage of the brand trust of thousands in India. It has been updated with technology although not the most advanced but not behind as well; however, UBI should start focusing on creative advertisement to attract more inventors in India as well as internationally.
With a huge increase in the service industry. There is a very high competition where marketing plays a crucial role-taking advantage of technology not merely in this industry in which every other company is focusing on digital marketing to rise ahead of each other. If you have the curiosity to learn you may check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Union Bank of India has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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