1) The SWOTT Analysis is an approach to strategic planning that may help to assess potential

external and internal impacts in the business. It stands for the following: It stands for the
following:

 Strengths: Talent and character strengths that can enhance the chance of achieving
organizational goals and objectives.
 Weaknesses: Controllable factors within the firm that exist within the organization and
hamper the achievement of its goals.
 Opportunities are external factors that the business can benefit from.
 Threats: Occurrences that exist in the external environment of the organization and
threaten the organization or because it troubles.
 Trends - trends or patterns in the outside world that might have an effect on
the organization.

2)
Strengths:
 Wide Market Presence: This implies that the revenue and a satisfactory consumer base
are given by the more than one million clients.
 Trust and Reputation: credibility, and more importantly, trust from its clients in the
market.
 A sound digital architecture comprehends all entities and functions that exist at a digital
level, such as mobile and Web applications, CDMs, ATMs, and the core financial
systems.
 Diverse financial products: a vast array of products that can potentially be sold to price
sensitive customers.

Weaknesses:
 Complicated IT Environment: The point was that managing several different digital
platforms can require lots of resources and do not always seem possible.
 Flexibility: Large banks may take time to respond to the new technological world due to
their implemented policies and large staff.
 Legacy Systems: It is important to note that some systems may be fixed on some dated
technology as maybe needed to be upgraded.

Opportunities:
  There are two strategies to reach the market, one is to spread to the Covered population
and the other one is to develop new financial products.
 Fintech affiliations refer to the arrangements that exist when companies come together to
present new and better products and services.

 Digital transformation can be understood as the management of certain IT technologies

such as big data, blockchain, and artificial intelligence to enhance organizational
performance and customer relations.

Threats:
 Regulatory Shifts: Regulations may change and this mean improved or reduced profits
and productivity levels among the employees.
 The threat to cybersecurity is high as data leaks and cyberattacks become more common
in companies.
 Intense Competition: The threat from new players in EFA and, in general, traditional
issuers of financial services and other organizations is increasing.
Trends
 Digital Transformation: The ongoing advancement of client expectations and digital
banking technologies.
 Blockchain and Cryptocurrencies: The use of cryptocurrencies and blockchain
technology is becoming more and more popular.
 Artificial Intelligence: Increasingly, fraud detection, individualized banking, and
customer support are using AI.
 Remote Work: A growing trend that affects internal operations and consumer interactions
is remote work.
 The term "sustainable banking" refers to the growing emphasis on how environmental,
social, and governance (ESG) factors affect banking operations and offerings.

3) If the firm wanted to evaluate its external environment, it may apply the PESTEL Analysis
strategy framework. It is used to analyze and locate the greatest threats within the organization
environment that may influence performance. PESTEL is an acronym derived from the
following factors namely; Political factors, Economic factors, Social factors, Technological
factors, Environmental factors, and Legal factors. All of these forms are sections of the external
environment that might either be influencing a firm’s operations and strategies or could possibly
influence it in future.
 Political Factors: These are areas of government laws, regulations, and policies in relation
to these components. Some of them are tariffs, taxes, trade barriers, and the government’s
involvement in the economy.
Some of them are: alterations in the financial services laws, banking act, political
stability, and governmental orientations that follow digitized money.
 Economic Factors: These are variables that influence an organization ‘s productivity and
are made up of the state of the economy and the market condition. Others are
employment level, growth of economy, interest rate, currency rate and the rates of
inflation.
For instance, it includes the state of economic development within the nations, inflation
rates, central bank rates, and Sri Lanka’s economic development.
 Social Factors: These are the cultural and social factors, which may affect organization:
Some of them are alterations in the buying patterns, consumer values, social attitudes,
and Channel preferences, as well as movements in the population characteristics.
For instance, there is changes in population, changes in attitude among the consumers to
prefer internet banking and increase in incidences of financial literacy among the
population.
 Technological Factors: These are attributes that can be associated with innovations and
improvements in technology that may impact on a firm. Some of the examples of digital
technologies include automation, Research & Development, how fast technology evolves
and uptake on these technologies.
Some of the areas include rising incorporation of bitcoins and other similar inventions
such as block chains, mobile banking, latest inventions on security, and several kinds of
fintech.
 Environmental Factors: These components brought out the environmental and ecological
subcategories that could possibly influence an organization. They are; Global warming,
increased environmental laws and adoption of green policies and practices.
Green banking regulation, policies, and guidelines to some of the social issue like green
banking activities of the bank and how climate change influence business.
 Legal Factors: Legal factors are the activities that are took place in the business are
follow through legal aspects of different country. This ranges from the European Union
General Data Protection Regulation, employment laws, consumer protection laws, and
intellectual property laws on matters pertaining to innovation. This means the bank has to
be aware of all financial regulations, data protection acts, and other legalities to avoid
coming across legal ramifications or to not lose its clients’ faith.
4) There are no doubts that according to the experience of the chairman of the well-known bank
in Sri Lanka company needs the PESTEL framework for strategic planning and decision making.
Here is a thorough study for each criterion: Here is a thorough study for each criterion:

A. political
• Government Policies and Regulations: Compliance with the guidelines issued by CBSL-
Central Bank of Sri Lanka; Adherence to the global banking norms- BSA (Basel Standard
Accord) – AML(Anti Money laundering laws).
Chaos when rebuilding the structure or mechanism to match the law or adjusting to variations of
tax legislation or incentives regarding the Internet banking activities.
• Trade Agreements: Explain the utilization of trade agreement toward the enhancement of
banking and financial services across the globe; appreciate the effect of international sanctions
and restriction of trade toward banking.
• Political Stability: Economic growth and development in Sri Lanka are influenced by political
stability since political stability will influence the investor confidence and hence the banking
institutions.
winning the hearts of members of parliament so that they can agree to enact sound and useful
financial laws.

B. Economic-
 Economic Growth: Forecasting fluctuations in the rate of economic growth and the
implications of these changes to consumers’ ability and willingness to borrow and save
money.
 Thus, they can also adjust their strategies in a manner that will allow them to benefit
financially from inflation or deflation in order to gain an edge when it comes to offering
financial products.
 Interest Rates: Keeping track of central banks’ adjusted interest rates on lending and
deposit products; Managing the quest for profitability when making decisions about the
best rates to offer customers.
C. Social -
 Customer Expectations:  Covering all needs of customers to make their banking
experience smooth and enjoyable.  Ensuring that in the formulation of new services and
the enhancement of the existing ones, consumers were given the primary attention.
  Corporate Social Responsibility (CSR): trying corporate and ethical banking to enhance
the image of a bank, engaging in sustainability and community enhancement programs.

D. Technical –
 Cybersecurity: Strengthening measures against cyber threats for protecting the customer
database and other valuable data.
 Having established a relationship, the risk level is moderate: Implementing frequent
security and compliance assessments.
 Innovation: The following strategies for continued innovation include:  Regular updates
on financial developmentary and incorporating blockchain, mobile wallet, and other
superior technologies;  Enhancing the creativity of IT employees on the current digital
services offered.

E. Environmental -
 Sustainable Practices: The implementation of green practices assist in the achievement of
the goal of the bank of having the least possible carbon footprint as maybe required.
 A call to ditch the use of paper as more and more cases go electronic in terms of carrying
out of transactions.
 Environmental Regulations: Offering value added services and products that meet
country and international Environment legal requirements; Offering legal and
Environment sustainability investment solutions besides offering environmentally
sustainable Investments and Financial services for sustainable Environment provision.
 Climate Change Impact: Thus, to assess the change that has been triggered through
climatic change is vital for analyzing the damages caused on many fronts, including the
banking industry and its clients.
 This involves considering issues likely to develop from climate change to matters in the
formulation of policies that will allow organizations to reduce or avoid incurring
incidences that will lead to extra costs.
F. Legal -
 Consumer Protection: Stage 2: The areas conducive to the achievement of strategic
competitors’ advantage are; Adherence to the tenets of ethical banking standards and
other regulatory measures for the safeguard of the clients.
 To properly respond to and serve the consumers, and to also solve or resolve promptly
and effectively any related comments/concerns or transactions.
 Data Protection Laws: Taking high-degree security measures concerning personal
information; Abiding to similar domestic laws on data security other measures such as
the GDPR, if carrying out activities in other countries.