Fifth Third Bank SWOT & PESTLE Analysis
COMPANY PROFILE -Fifth Third Bank
Business Sector :Business and Financial Services
Operating Geography :United States, North America
About Fifth Third Bank :
Fifth Third Bankcorp is a diversified bank holding company and is the indirect holding company of Fifth Third Bank. It is one of the largest consumer banks in the Midwestern United States. The company operates around 1,154 branches and 2,469 automated teller machines in Ohio, Kentucky, Indiana, Michigan, Florida, Georgia and North Carolina as of early 2021. Fifth Third Bank is a principal subsidiary of the Fifth Third Bankcorp which is headquartered in Cincinnati, Ohio at Fifth Third Center. In 1908, Third National Bank and Fifth National Bank joined forces to become the Fifth Third National Bank of Cincinnati. Fifth Third Bankcorp operates four main businesses, namely, Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management. Commercial Banking provides credit intermediation, cash management and financial services to large and middle market businesses, professional customers and government. It also offers a wide range of solutions through its credit products group, capital markets, and treasury management services. Branch Banking issues a full range of deposit and loan products to individuals and small businesses. Consumer Lending, involves automobile, residential mortgages and other indirect lending activities. Automobile lending unit’s activities include, extending loans to customers through motorcycle, recreational and marine dealers. Wealth and Asset Management supplies a full range of investment alternatives for individuals and companies. In 2020, the Bank granted funds for Covid-19 relief, recovery and it also helped thousands of small businesses by providing small loans. In 2019, the company was recognised as the one of the World's Most Ethical Company.Fifth Third Bankcorp's Unique Selling Proposition or USP lies in it being the leader of having the best technology and customer satisfaction in mobile banking. The company's mission statement reads, "The mission of the Community and Economic Development team at Fifth Third Bank is to responsibly empower underserved individuals, families and communities through the delivery of responsible and innovative financial solutions, leading to financially healthy people and sustainable communities".
Fifth Third Bank Revenue :
US$ 8,350 million – FY ended 31st Dec 2019
US$ 6,946 million – FY ended 31st Dec 2018
Competitive Analysis of Fifth Third Bank
| Strengths | Weaknesses |
| 1. Strong regional presence across states with over 1100 branches and 2400 ATM’s 2. Strong market performance coupled with aggressive acquisitions. 3. Consistent delivery of service and commitment results in record income growth. 4. Continued investment in advanced technology solutions | 1. Operations are restricted to few states of US in era of global expansion 2. Accused of opening fraudulent accounts |
| Opportunities | Threats |
| 1. Bold transformation will lead to expansion in market share and net profit. 2. Asset management will be the game changer in terms of revenue for Fifth Third 3. Expand market share in key geographies with focus on next generation retail branches | 1. New entrants of neo-banks are attracting customers, thus reducing the market share 2. Increasingly competitive environment due to changes in regulation and technology |
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Detailed SWOT Analysis of Fifth Third Bank
Strength
1. Strong regional presence across states with over 1100 branches and 2400 ATM’s:Fifth Third Bank is a subsidiary of Fifth Third Bancorp headquartered in Cincinnati, Ohio. Third National Bank and Fifth National Bank merged in 1909 to become Fifth Third Bank. It is ranked in the esteemed Fortune 500 list. This consumer bank operates in Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee and West Virginia. With operations in these states with over 1100 branch locations and 2400 ATM’s it becomes the largest consumer bank which is so densely present in mid-western United states.
2. Strong market performance coupled with aggressive acquisitions: Fifth Third Bank is having a strong market hold in the regions it operates. In 2019, it recorded a net income of $2.5 billion, assets $169 billion and core deposit of $123 billion. Fifth Third Bank has a history of expanding its operations through acquisitions and mergers. Acquisition of MB Financial was done in May 2018, one of its major expansion and acquisition deal. This acquisition has increased banks market share across Chicago with 86 full-service banking centers, 185,000 new customers and $20 billion in asset. This deal is expected to profit Fifth Third through internal return of about 18.5%. Some other companies acquired are Franklin Street Partners, Epic Insurance Solutions etc.
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Weakness
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Opportunity
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Threats
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Major Competitors :
- M&T Bank
- US Bancorp
- PNC Financial Services
- Citizens Bank
- Citi Group
- Goldman Sachs
- JPMorgan Chase
- Morgan Stanley
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Check Out Analysis of Other Relevant Companies
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in Fifth Third Bank Analysis Report
1. Fith Third Bancorp – 2019 Annual Report - https://s23.q4cdn.com/252949160/files/doc_financials/annual/FITB_2019_10-K.pdf
2. Open Banking – U.S is next - https://www.pwc.com/us/en/industries/financial-services/financial-crimes/library/open-banking.html
3. Grow Your Business - https://www.53.com/content/fifth-third/en/financial-insights/business/grow-business.html
4. Neobanks and the next banking revolution - https://www.pwc.in/consulting/financial-services/fintech/fintech-insights/neobanks-and-the-next-banking-revolution.html
5. Bank lobby builds 'political machine' to spend for 2020 House and Senate races - https://edition.cnn.com/2019/07/18/politics/american-banking-association-2020-elections/index.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Fifth Third Bank SWOT and PESTLE analysis has been conducted by Akshay Mohan and reviewed by senior analysts from Barakaat Consulting.
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