SWOT ANALYSIS

INTERNAL STRENGTHS:
Huge Deposits:
The bank has stable growth in deposits since its emergence. UBL is the third largest bank in
Pakistan and because of its 45 years long existence it is the trustworthy bank in Pakistan and
outside Pakistan.
Advances on Sound Basis:
The loan facility provided by the bank is on sound basis. They have many checks and
documentation that secure their money after advancing. With their strategy there are very less
chances of non-recovery from the debtor
Infrastructure:
Because of its 1056 Domestic and 15 Overseas Branches they have very good infrastructure and
are prevailing now outside Pakistan also. UBL continually looks for ways to become more
efficient and to increase their profit margins
Brands:
UBL has launched their products and varied services with particular brand names that is now-a-
days a competitive strategy in its own. They are launching same schemes that are already
existant in the banking sector but because of giving them brand names they are creating unique
identity. Their popular brands are UBL Wallet (ATM card), UBL Address (House loans), UBL
Drive (Car financing), UBONLINE (Online Banking Service), HAMRAH (Traveler Cheque),
Click N Remit , TezRaftar (Remittance Service) etc.
Fast Service:
Another very important aspect of UBL is its fast service. Every thing goes very quickly. If you
are looking for a loan, or you want to deposit money or you want to pay your bills their service is
so fast that they respond the customer very quickly. Like other banks customer do not have to
wait for the long time.
Financial:
UBL has financial strength as they are gaining profit from the advances that they provide to the
organizations.
Services:
UBL is providing lot of services to its customers like in case of remittances they have services
like Click N Remit online service, Tezraftar is another remittances service, UBL-Online their
online service, Money gram is their service for foreign currency remittance from outside
Pakistan and Hamrah is their service regarding rupee traveler cheque.
Promotion Criteria:
The promotion criterion of employees is made up of passing the diploma examination of
Pakistan institute of bankers.
Good Reputation:
Because of its quality management, marketing, innovation in products and services they have
established a good reputation in the banking sector.
INTERNAL WEAKNESSES:
Centralization:
United bank limited is centralized. It means authority is not delegated to branch level. Manager
can’t take initiative regarding different decisions such that for giving finance.
Low Promotional Activity:
The majority of people are not well aware about the products of UBL. Promotion activity of their
services is very low.
Lack Innovation:
UBL Management lacks innovation they introduce the same products that are already existent in
the market.
Low Salaries:
United bank limited officer’s salaries are low as compared to other private banks.
Low Motivation Level:
There is low level of motivation in the employee of the bank.
Reactive Approach:
UBL management has opted reactive approach they respond to the market very slow and are
reluctant to take initiative before the problem arise.
Less Specialized Skill:
In UBL there is lack of specialized skill because of job rotation policy of human resource
department. The bank should concentrate upon increasing its abilities on individual service basis.
EXTERNAL OPPORTUNITIES:
Mobile Banking:
Mobile banking is a concept that has started to find its roots in the banking sector. So it is a big
opportunity for UBL to avail this chance at big level.
International Expansion:
Opportunities exist for expansion of UBL chains in the international arena, in particular in
Germany and Europe. Particular attention must be given to the individual country's customs and
cultural practices to be successful
Trade Shows:
UBL should organize trade shows for the promotion of export for that they should finance the
companies those who wanted to internationalize and wanted to introduce their product and
services outside Pakistan.
Liberalization:
Liberalization is a concept that is under discussion around the world as this is going to be
implemented by WTO in a few years to come. With this liberalization many industries are
expected to be open in Pakistan and with free trading lot of trade activity is expected. So keeping
in view these perspectives there is great opportunity for UBL to be stronger.
Sociocultural:
An external opportunity exists in efforts to improve the social environment of local communities
and society in general by offering innovative, community-involvement programs
EXTERNAL THREATS
Rapid Changes:
The rapidly changing environment in the banking sector and the quick response of the other
banks to these changes can be a threat for UBL.
Customer Behavior:
What customer really wants is a difficult thing to identify as to identify the customer perception
and its behavior is complex procedure. So the changing needs of the customer can be a threat for
the banks.
Governmental Policies:
Changing governmental policies and instability in politics can be seen as a threat for the banking
sector.
Competition:
Competition can be the greatest threat for the UBL. As old banks have started changes and many
new banks are emerging as a strong entity so UBL will face a strong threat from this competition
unless they adopt pro- active approach to handle these threats.
RECOMMENDATIONS
Swift Mechanism:
SWIFT mechanism is gaining importance for the treatment of LC and it has been found that
UBL has only provided SWIFT facility at its head office not to all the authorized dealers dealing
with foreign exchange in their branches. To save the precious time of the prestigious customer
and to avoid them from defection UBL should insert SWIFT mechanism for LC in their Central
branches inside the country.
To Avoid Customer Defection:
During my time period that I spent in foreign exchange department I found in their registers that
many firms were defecting means those who were first loyal to UBL for the operations of
opening LC were not viewed in the list for a longer period of time. To avoid their defection
whether it is partial or full relationship should be created by giving a phone call. It will make
betterment in UBL’s goodwill and their profits.
Reduce Complexity in Advances:
While providing advances the mechanism that is opted by UBL is to provide facility and renew it
after a year. In the renewal whole procedure is followed again that was opted at the start. Lot of
documentation get not only employee confuse but even customer avoid that. This can be the
reason for UBL having low ratio of advance as compared to their deposits. So UBL should finish
the method of renewal but keep checking the performance of the organization by having
relationship.
International Expansion:
UBL has internationalized already and is performing very well in its abroad branches. But UBL
has internationalized to few countries. They have big markets ahead of them and with their
branches all over the world they can very easily access the people around the world and their
working activity will get simpler with that. In the form of European Countries and markets like
CHINA where there is lot of activity related to banks they can expand their chains.
Mobile Banking:
Mobile banking is actually banking that you can do yourself. You can perform various activities
of bank through your mobile phones or through your computers. With just a call you can transfer
money from one account to another and similarly other activities. It is a concept that is gaining
importance throughout the World Pakistan is no exception. UBL should start working on this
concept to maintain their existence in the changing banking sector.
Adopt Pro-Active Approach:
UBL management should adopt proactive approach to survive in this sector. What I have
observed is that UBL management is having reactive approach means they react to the situation
that their competitors have created. In case of consumer financing UBL has responded by having
same schemes that have been already launched by their competitors e.g. Car financing and
housing schemes are responded but very late by the UBL. UBL should try for new innovative
ideas rather than moving on the same rack that their competitors are doing.
Educate Account Holders:
Whether the account holders are new or existing bank should provide them with the initial
information about how to deposit and withdraw money from the bank. It will be beneficial for
the bank in a way that lot of time could be saved afterwards with that approach.
Credit Card Facility:
Credit card facility should be provided by UBL because by that they can utilize their idle deposit
in best way and it is the best source for establishing relationships with the strong parties.
Promotional Activity:
Bank must let potential customers know that all attractions for banking exist. This is done by
advertising on television and obtaining press coverage, in conjunction with direct mail, window
displays, pamphlet in branches and in appropriate other locations (such as hotels, shops, etc.) and
including leaflets in statement of accounts sent to existing customers in the hope that they will
tell potential customers about the services provided by our bank.
Relationship:
The bank should keep on filling the gap between customer and the bank through consumer
friendly attitude and efficient services. They should work on building relationship with the
customers.
Business Parties:
UBL should start thinking about relationship with the parties that are willing to do the business
with the bank. Business in the form of deposits for a longer period of time. Rather than looking
for small parties whose purpose is just to deposit in the morning and have withdrawal in the
evening should be discouraged. Lot of time and work activity can be saved by having few but
good parties rather than having huge accounts of small amount and especially those are not for
the purpose of long term deposits.
Change Attitude:
Employees inside the branches should change their attitude toward the customer. It has been
observed that customer do not get the same warm welcome and importance that he wants and he
is been provided by other emerging banks like ALFALAH and UNION bank. They should start
thinking about changing their attitude from now.