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SWOT Analysis

The SWOT Analysis identiIied the opportunities, threats, strengths and weaknesses oI the bank,
as Iollows:

3.1 Opportunities

O The Bank is very well placed with a good and assured customer base Irom the level oI the
government and the public sector business.
O any patriotic Nationals will do business with this bank because they know that the proIits
oI the Bank belong to the people oI the country and are used Ior the country`s development.
O The availability oI modern telecommunication systems and technology will Iacilitate the
improvement and strengthening oI the Bank`s international business and AT services, and
the development oI new services, such as telephone banking.
O The increased access to computers by customers will allow the bank to reach more target
groups through electronic communication.
O lobalization in business is growing - cruise ship berth was built, hotel industry developing,
new Ioreign investors- which should introduce more capital into the country and should
spawn employment opportunities Ior locals.
O The population that is mostly young comprises a strong workIorce capable oI advancing the
overnment`s developmental plans to take the country`s Iorward.

3.2 Threats

O Some customers preIer to do business with our competitors because Sample Bank Ltd is
overnment owned and political interIerence or changes oIten aIIect their conIidence in the
O Sample Bank Ltd may be unable to attract certain customers because it is overnment owned
and there is the perception that their account inIormation is open to the overnment and its
O The introduction oI American culture and liIestyles into our society could result in greater
external spending and so have a negative impact on the local economy.
O With the establishment oI the CARICO Single arket and Economy the Bank will be
Iaced with competition Irom regional banks that are better equipped and prepared to meet the
changing needs oI customers.
O We also have to compete with banks and other Iinancial institutions in the Organisation oI
Eastern Caribbean States (OECS) and abroad as a result oI globalisation.
O irst Caribbean International Bank (the new entity that will be Iormed Irom the merger oI
Barclays Bank and CIBC) will be a stronger Iorce to recon with, as it will be able to reach a
wider cross-section oI the market due to the combining oI strategic capabilities and
competences, human and Iinancial resources, and contacts and delivery networks.
O The black listing oI the country by the AT could aIIect the Bank`s correspondent banking
relationships, as the Bank will be under greater scrutiny Irom the eyes oI the outside world.
Any severing oI such relationship will curtail the bank`s ability to handle customers`
international business.
O The deterioration oI the banana industry, one oI the country`s major industries, could result
in a downturn in the economy.
O The anticipated decline oI the local tourism industry as a result oI the recent terrorist attacks
on the US could also result in a downturn in the economy.

O There is increased competition Irom the non-blank Iinancial sector, the credit unions, the
savings & loans bank, the building & loans association and the insurance companies. These
institutions are not regulated by Central bank and hence they are not restricted in their
operations. They have been paying very high rates on deposits and have also been oIIering
more and more oI the services which were traditionally oIIered by commercial banks.
O The Eastern Caribbean Securities Exchange (ECSE), which was recently opened by the
ECCB across the eight member territories oI the ECCB currency union, will present other
investment opportunities to customers and could reduce our deposits, as well as our chance to
raise additional deposits.

3.3 Strengths

O Our leading position in the industry, with respect to our market shares oI assets, loans and
deposits, puts us in a position to inIluence the level oI interest rates.
O We are the only local commercial bank with a Board oI Directors, a Board that can attract
good business to the Bank as it consists oI successIul & respected business people with a
good mix oI expertise in key industries and with strong social links in the country. Approval
oI loans is Iaster with a local Board in place.
O ost oI the staII are young and have the requisite capabilities, and are re-trainable Ior newer
systems and technology. This will thereIore make the selection and training oI the sales team
O All the members oI the staII are local, and very well-known and have good contact with all
sectors oI the community. They will thereIore be in a good position to attract more customers
to the Bank.
O The network oI branches and other outlets aIIords customers service Irom any point within
the state as the computer mainIrame is accessible Irom all branches.
O The Bank is leading the local competition in inIormation technology, and its core banking
system has the capacity Ior Iurther advancements. Customers may preIer to open accounts at
Sample Bank Ltd because statements and account inIormation are produced Iaster that our
competitors who on several occasions have to wait on their regional head oIIices to Iorward
the inIormation.
O The monopoly some branches have by being the only bank in the particular area and the only
collector oI bills Ior various utility companies is advantageous in increasing customer base.
O The strong network oI regional and international correspondent relationships places the Bank
in an advantageous position in the execution oI Ioreign exchange business.
O It may be an advantage Ior Sample Bank Ltd to have the largest customer bade as customers
may encourage others to use its services.

3.4 Weaknesses

O The lack oI exposure Ior our staII as a result oI our poor customer mix makes it diIIicult Ior
our staII to be as experienced and equipped as most oI our competitors to deliver services
eIIiciently and maintain high standards oI service.
O Our international competitors, the other Iour commercial banks, are better prepared to stay
aIloat in the Iace oI strong competition with research departments and qualiIied staII to keep
their institutions in line with legal, technological, operational and other changes.
O The Bank is totally reliant on its correspondent banking relationships to conduct its Ioreign
exchange business and may Iind it impossible to survive against its international competitors
iI its correspondent banks should close such relationships.
O Although Sample Bank Ltd has the largest customer base, it has over the years had little
success in attracting the business community because it is government owned, and may
continue to Iail in this regard.