Swot analysis
Internal Strengths
Ownership Of Strong Group
The UBL is under the ownership of two very strong (financially) group (The Abu
Dhabi Group & The Best way Group). The Chairman of the bank is His Highness
Sheikh Nahayan Mubarak Nahayan who is leading role of Abu Dhabi Group. Abu
Dhabi Group has also the ownership of Al-Falah Bank, and recently launched a GSM
Mobile Network company named WARID TELECOM. In Pakistan the largest FDI
(Foreign Direct Investment) is of the Abu Dhabi Group.
The Deputy Chairman of the UBL is Sir Mohammad Anwar Pervaiz (OBE) who is the
leading role of Best way Group. This group has started its business in England and
emerges in the top ten large business entities of England. This group recently installed
the Cement Plant of Pakistan in Tehsil Chowk Saidan Shah District Chakwal.
Sir Mohammad Anwar Pervaiz got the following Awards in the owner of his business
achievements:
1) Order Of British Empire (OBE) (1992) British Award
2) Knight (1999) From British Queen
Elizabeth
3) Hilal-e-Pakistan (2000)
4) Mir Khalil ur Rehman Husn-e-Karkardgi Award (2000)
5) Best Businessman Of the Year (2001) Pakistan
6) Life Time Achievement Award (2003)
Huge Deposits
The bank has stable growth in deposits since its emergence. The UBL is the
second 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 1000 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 existent 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 loan), UBL Drive (car
financing), UBONLINE (online banking services), HAMRAH (traveler Cheque),
Click N Remit, TezRaftar (remittance service) etc.
Fast Service
Another very important aspect of UBL is its fast service. Everything goes very
quickly. If you are looking for a loan, or you want to deposit money or you want
to pay your bills their services are so fast that they respond the customers very
quickly. Like other banks customers 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 incase of remittances they
have services like Click N Remit online service, TezRaftar is an other
remittance service, UB-ONLINE is 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 (IBP).
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
UBL is centralized. It means authority is not delegated to branch level. Manager
cannot 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. It is due
to their very low services of promotional activity.
Low Motivation Level
There is low level of motivation in the employees 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.
EXTERNAL OPPERTUNITIES
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 Invention 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 in under discussion around the world as this is
going to be implemented by WTO in a few years to come. With the 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 an 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 the adopt pro – active approach to
handle these threats.
