Net bank--------Nexity USA analysis

Essay by np4friendsUniversity, Master'sC+, May 2006

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SWOT analysis

Strengths

- Secure and convenient online banking for customers

- Quality product and friendly service

- Focused differentiation strategy

- Low cost structure due to no physical presence of branches

- Knowledgeable and friendly staff members

- Technology savvy and convenience minded customer target

- Serving customers efficiently, quickly and efficiently

- Partnership for brokerage accounts

- Web trust seal security

- High asset growth

- High deposit growth

- All product focused strategy

- Efficient cost structure

- 24 hours and 7 days call centers

- More convenient services by online account

Weakness

- No brand recognition

- Only 2 percent share of online market

- Hit and run customers for specific products

- Cant provide services like face to face contact

- Hard to gain customer trust for sensitive issues

- Cant have ATM and branches

- High advertising and marketing expenses

- One office for deposit collection

- Few services are not available

- Old people don't accept such technology based services

- Difficult to solve few problems by call centers or email

- More time for depositing money and for other few services

- More time for deposit slips and other services

- More time required for cash withdrawal

Opportunities

- Very large financial market

- Rapidly growing market

- Rapidly acceptance of technology based services industry

- More young age people diverting towards internet bank

- Many financial services can be provided by online banking companies which they are not offering now

- Mergers and acquisitions with other online banks to grow rapidly

- Developing countries and around the world economic development

- International acceptance of service and by different international laws provides opportunity to operate in many countries

Threats

- Biggest threats from traditional banks which are providing such services at same...