SWOT Analysis

As it is known that SWOT analysis is the process of analyzing organizational strength & weakness, and its environmental opportunities and threat, analysis of these points are must in order to make the bank able to know it. Through the analysis, following points come into knowledge:

STRENGTHS
UBL is the second largest commercial bank of Pakistan which has made it able to grab the attention of customers faster than other banks. The Bank has got a well reputed online system in most of its branches. Remittance department is working very efficiently in transferring the funds to people who need it due to this system especially through Uni-Remote process. It has a well-knitted and adequately equipped branch networking system that efficiently covers both the domestic and international markets.

The bank has stable growth in deposits since its emergence.

Because of its 1056 Domestic Branches they have very good infrastructure and are prevailing now outside Pakistan also.

By providing advances/loans to the organizations, the bank has become able to become financially stronger than those banks which dont provide loans. The new policy adopted by the bank is that it has replaced its old employees by new educated and fresh graduates. It helped them able to interact in more efficient way with the customers.

Certain training programs are arranged outside the working environment to train and refresh them or entertain them.

WEAKNESSES
Banks is trying to decrease the workforce which increase the burden on one employee making him take more absentees and become fatigue Still, all the branches of the bank are not computerized which is a negative sign UBL is centralized. It means authority is not delegated to branch level. Manager cannot take initiative regarding different decisions such that for giving finance. Due to low advertising campaign and promotions, the people are not aware of the products bank is facilitating. Promotions are carried out on annual basis ignoring the importance of capabilities and performance outputs. Lengthy credit processing and documentation procedures There is low level of motivation in the employees of the bank There is no proactive approach used by the management. They respond when there competitors respond and due to this reason they gradually loose their customers. Ineffective system of recruiting and selection. It is observed that more than 50% of the employees are relatives with each other and selection are done on the basis of preference.

OPPORTUNITIES
As it is known that IT is the core need of every organization, the bank should therefore try to improve their IT skills to compete their competitors. Reconstruction of Afghanistan is a golden opportunity where the bank can effectively participate Expansion of IT platform and internet based banking system. Businesses and customers shows keen interest in leasing facilities provides a healthy opportunity for banks to fulfill their requirement and improve the bank If the employees of the bank are observed, all of them are simple graduates who need extensive training in order to become aware of the banking process. The market is full of MBA and BBA graduates who are aware of the banking system and can operate more efficiently than simple graduates. They should be hired in order to fulfill the requirement of the bank easily The product range of the bank should be increased in order to compete with the other larger banks and competitors 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. Opportunities exist for expansion of bank chains in the International Arena. Particular Invention must be given to the individual countrys customs and cultural practices to be successful. Promotional activities should be organized and there advertisement campaign should be boost up in order to make the customers able to know the products and services of the bank.

THREATS
Competitors are the main threat to the bank. It should be dealt with the improved products and services plus marketing strategies. Growing global technological advancements and adaptation of modern style in management of banking sector Extensive promotion campaigns run by competitors Political instability in the country, low level of income with low rate of industrialization which increased unemployment, religious factors and government policies also adversely effects the bank. 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.

The analysis of strengths, weaknesses, opportunities and threat as narrated above tells us about the present vital concern of the bank. It is the mirror image of the present conditions of the bank. Some efforts are already taken and some are to be taken. The bank should always be prepared and do the above analysis on the period basis. Both proactive and reactive approached should be used by the bank to be aware of their strengths, weaknesses, opportunities and threats.