SWOT Analysis of Deutsche Bank

With its 1776 branches in Germany and total 2656 branches in more than 70 countries, Deutsche Bank has well positioned itself in major regions globally whether it is Asia Pacific, Europe or Latin America.

Strengths in the SWOT Analysis of Deutsche Bank :

Leading European Bank: The Company has a strong base in Germany, Europe’s largest economy. It serves corporate, institutional, asset management and private customers and provides services such as transaction banking, capital markets corporate finance, wealth management and retail banking.

Consolidation of business: In order to build core strength, it has consolidated its business operations by focusing more on optimizing its resources and cost of capital. It has reorganized its business divisions into three distinct units with the goal of strengthening each business, enhancing coverage, and strengthening market share.

Retail Business in Germany: Through an integration of Postbank and PCB’s German business with the goal of creating a market leading retail presence in Germany is driving greater efficiency through a scale of operations resulting from better earnings and stability in the company.

Investment banking: Reinforcing its businesses with international multinational corporations by creating a single, integrated corporate and investment bank is what Bank has been known for since its inception.

Strong Brand: Deutsche Bank has been ranked 441 in Forbes magazine list of global 2000 brands (as of May 2017). The brand has been valued at $ 34 billion as of May 2017 thereby generating revenue of $44.28 billion.

Weaknesses in the SWOT Analysis of Deutsche Bank :

Business Myopic: Due to its presence in selected business segments it is experiencing de-growth in the business it operates into due to regulatory changes and business consolidation.

Limited Reach: Since the company has dominance presence in European markets and has limited presence globally, it is restricting it in capitalizing the underlying opportunities from the emerging nations.

Opportunities in the SWOT Analysis of Deutsche Bank :

Digital Integrations: New IT platforms and innovative digital integration strategies are proving o be the catalyst and is driving the growth of the Financial industry globally.

Changing Customer demand pattern: With the emergence of fin-tech firms, changing a lifestyle of people, strive for simple and convenient banking, demand for various financial services under one roof and rise of developing nations are some of the factors which will help the company in its growth. 

Global Expansion: the Currently company is operating in more than 70 countries with 2700+ branches functional with the help of 98000+ employees (2016) globally. With the advent of developing economies, it brings in expansion opportunities.

Diversifying business: Deutsche Bank operates in business segments such as Corporate Banking and Securities, Asset and Wealth Management, Global Transaction Banking, Non-Core Operations Unit and Private & Business Clients. Diversifying into other businesses will help the company in unleashing its true potential.

Threats in the SWOT Analysis of Deutsche Bank :

The emergence of Fin-tech Firms: Fin-tech firms are playing a vital role in shaping the economics of the financial industry. These new entrants are giving head-on competition to the banks by doing lots of data analytics and customizing the service to be offered to the customers.

Competition from Meta- Market entities: Since company deals in the financial products which are in line with the products offered by the Banks like investment solutions, asset loans by NBFCs, technology-based fast and in-hassle free manner portfolio management solutions.

The uncertainty of geopolitical system: Increasing political instability due to an uncertainty of the system & processes has resulted in unpredictable consequences in the financial sector, business decline, revenue loss etc.

Regulatory Reforms: Deutsche Bank operates in the highly regulated industry which is affected by the increased regulatory scrutiny, Provisioning guidelines, restriction on policies, new laws and regulations etc.

Economic Conditions: Low-interest rate environment putting pressure on margins and forcing market participants to adjust pricing model.