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
The SWOT analysis for Fifth Third Bank is presented below in a table followed by the detailed analysis report.
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.
The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threats
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The PESTLE / PESTEL analysis for Fifth Third Bank is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. US China trade war has been impacting banking sector
2. Lobbying in house by banks to influence policies
3. Scholarship donations to continue ignoring destructive identity politics
| 1. Promotion of US Savings Bond as a long-term investment. |
Social | Technological |
1. Shifting of traditional banking users towards digital and neo-banking
2. Introduction of open banking system in US will give consumers more freedom
| 1. Digital transformation across processes and operations to strive competitive market
2. Partnering with fintech’s to provide customer centric and user-friendly platforms
|
Legal | Environmental |
1. Trend of being compliant to all regulations, CFPB’s lawsuit denied | 1. Commitment to combat climate change through use of renewable energy |
Fifth Third Bank SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of Fifth Third Bank
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Commitment to combat climate change through use of renewable energy:
Environmental challenges or climate change initiatives are being considered in social agenda of every company. Fifth Third Bank strengthens communities to combat climate change and live and work in a better environment. It has been recognized with Leadership Band score A in 2019 CDP climate change scoring scale. Fifth Third also committed to construct 80MW solar project in North Carolina. It is the flagship Fortune 500 company in the world to accomplish 100% renewable power through a single solar power project. Fifth Third in 2019 became the 10th-largest purchaser of solar power in the U.S.—and the only bank. In order to improve reduction in carbon footprints, Fifth Third is committed to purchase 100% renewable energy, reduce greenhouse emission by 25%, reduce water usage by 20%, trim land fill waste by 20% and minimize energy consumption by 25% in the upcoming two years. Investment in LED and HVAC control across all branches has helped improve sustainability, reduce workplace carbon footprint and greenhouse gas emissions.
Fifth Third Bank SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Fifth Third Bank BCG Analysis |
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Fifth Third Bank Ansoff Matrix Analysis |
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Check Out Analysis of Other Relevant Companies
References used in Fifth Third Bank SWOT & PESTLE 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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