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Presentation1 SWOT RB Sumanth

The document provides a SWOT analysis of the banking industry in India. Some of the key strengths identified include that banking is one of the oldest industries and has enabled economic growth. However, weaknesses include a lack of coordination globally and outdated technology. Opportunities exist in expanding to rural areas and offering more services to meet changing customer demands. Major threats include recessions, data breaches, and increased competition from other financial companies. In conclusion, the banking industry needs to address weaknesses and better meet customer needs through new offerings to capitalize on opportunities and withstand threats.

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Priya Raj
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65 views9 pages

Presentation1 SWOT RB Sumanth

The document provides a SWOT analysis of the banking industry in India. Some of the key strengths identified include that banking is one of the oldest industries and has enabled economic growth. However, weaknesses include a lack of coordination globally and outdated technology. Opportunities exist in expanding to rural areas and offering more services to meet changing customer demands. Major threats include recessions, data breaches, and increased competition from other financial companies. In conclusion, the banking industry needs to address weaknesses and better meet customer needs through new offerings to capitalize on opportunities and withstand threats.

Uploaded by

Priya Raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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IMPACT OF

INFORMATION
TECHNOLOGY ON
RETAIL BANKING IN
INDIA WITH A SWOT
ANALYSIS. BY
KASUKURTHY SAI SUMANTH
Introduction:

The banking industry is one of the oldest industries still around today. It’s come along way from the old
bartering and exchange system. And yet, it still has a long way to go. Even though most banks now offer online
services so you can use do most of what you need from home, this industry is still lagging behind. It’s not
meeting consumer demands or using updated IT infrastructure.
There are many positives associated with the banking industry though, as this SWOT analysis of the banking
industry will explain. Here I’ll discuss the strengths, weaknesses, opportunities, and threats related to the
banking industry, now and in the future, based on the standard SWOT table.
Strengths:
What strengths does the banking industry offer to consumers?
One of the oldest industries.
So long as humans have been alive, there’s been forms of banking. Initially, it was a bartering and
exchange system, but now it’s much more than that. Banking teaches us the value of money, gives us
access to loans to reach our dreams, and provides a host of other services related to credit cards, savings,
and bonds.
A leader in economic growth.
It’s because of banking that we’ve seen such economic growth at home and worldwide. Supply and
demand have fostered this growth and also improved financial trade, financial stability, and financial
security. It’s also one factor behind increased employment and the reduction of worldwide poverty.
Financial support after a crisis.
After experiencing a loss or natural calamity, the banking industry helps customers get back on their feet.
Insurance, investment, and loan options are to thank for this.
Digital banking convenience:
It’s now easier than ever to do banking online. You can deposit your check, pay your bills, and apply
for a credit card without stepping foot into your bank’s branch. However, for more “in-depth”
services, you’ll likely still need to make an appointment with a financial advisor. Some things are
better handled in-person than electronically.
Banks have plenty of competition. That’s why many are making their customers’ lives easier by
offering specific services like free credit score checks. The focus is about improving regulatory
compliance and asset quality.
Weaknesses
The weakness of the banking industry include the following:
Lack of worldwide coordination.
Because the banking industry handles finances, it’s a vulnerable industry. It also relies heavily on the
coordination of the economy, but this is a problem on a global scale. Fluctuating currencies and
exchange rates can also be trouble for banks.
Old technology leads to vulnerabilities.
Many banks still use outdated IT infrastructure to host online services. For instance, some banking
websites don’t use case sensitive passwords or allow customers to put special characters in passwords.
This makes passwords extremely weak and easy for hackers to brute-force into your accounts.
No access to rural areas.
Rural regions don’t have access to banking services. Part of this is because of conflicts between
government objectives and banking objectives. Another reason for the lack of access is because
providing services to rural areas can be more trouble than it’s worth financially.
Opportunities:
The banking industries have many opportunities within the industry and for consumers:
Move into rural regions.
As mentioned in the weaknesses section, the banking industry hasn’t approached rural areas yet. It’s an opportunity
to get more customers, but achieving such a move isn’t a small feat. It may take dozens of years before this
approach is successful.
Offer more or lose customers.
Banks should keep up with consumer demands and demographic changes. Having a banking app isn’t enough
consumers especially millennials crave more options. Providing what people want will require heavy research
from banks. It will also require segmenting customers to create custom-service options. For instance, what students
opening their first account needs will differ greatly from homeowners or business owners.
If banks fail to address the demands and desires of customers, they’ll lose them. After all, there’s always another
bank they can easily go to.
Threats:
Just like any other industry, the banking industry also has its fair share of threats:
The biggest threat of all: recessions.
The biggest threat to any industry handling money is a recession. It’s the most critical threat that can make or
break a business. If small and big businesses fall, it’ll have a direct consequence on the banking industry.

Data breaches.
With banks offering more online options, it also increases the risk for data breaches. People give other websites
like invoicing companies (like PayPal) access to their bank to receive and transfer money. If these companies
have a breach, it gives hackers access to personal bank accounts. Although there is nothing banks can do for
breaches on other websites they can make sure their own is heavily protected against hackers.

So much competition.
Banks have a ton of competition; not just with other banks, but with other alternative finance companies. This
includes mutual fund companies and insurance companies. Millennials are especially receptive to getting 
Threats
Just like any other industry, the banking industry also has its fair share of threats:
Final Thoughts about the SWOT Analysis of the Banking Industry:
The banking industry is old, which proves its reliability. It’s there when we need to get back
on our feet after a natural (or man-made) disaster. It offers a variety of ways for us to gain
credit, save more money, and easily transfer funds when necessary. But it’s also slow to
technological changes and fails to meet the needs of the younger generation.
The good news is that there are opportunities for where it fails. Banks can update their
infrastructure to remain secure; it can create new offerings to appease millennials. It can also
reach more people by spreading into rural areas. But the industry must first look at its
weaknesses honestly before it can make any headway.

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