Nedbank SWOT and PESTLE Analysis

Strength

1. One of the largest financial services groups in Africa: Nedbank group, one of the biggest banking and financial services group of Africa, offers retail and wholesale banking services including wealth management, asset management and insurance services. A 19% deposit and 19% advances market share prove that it has a strong franchise in South Africa. It is the 5th largest unit trust manager in South Africa managing a total asset amount of R331bn Rand and serving around 7.9 million clients (in Africa). Apart from South Africa, it operates in five SADC countries via banks and subsidiaries in Lesotho, Mozambique, Namibia, eSwatini (Swaziland) and Zimbabwe. It operates via a strategic partnership with Ecobank Transnational Incorporated (ETI) to cater the Central and West African regions and also has representative offices in Kenya and Angola.

2. Diverse product and brand portfolio: Nedbank offers a variety of products and services in its portfolio. Every day or personal banking solutions include credit, debit cards, savings and investment accounts, home loans, personal loans, motor finance, self-service banking, insurance, forex, non-resident banking, financial planning and life stages banking. Business solutions include services for small businesses like banking, payments, investing, financing and news. Corporate solutions include advisory, financing, investing, trading, transacting and insurance. Nedbank portrays itself as a monolithic brand which consists of four sub-brands- Nedbank Corporate, Nedbank Capital, Nedbank Private Wealth and The Nedbank Group. The Nedbank Group is again divided into four broad areas namely – Nedbank Limited, Foreign Nedbank Group Subsidiaries, Trust, securities and other entities and Nedbank Group Insurance Holding Limited. Nedbank has positioned all its brands uniquely thus catering to a wider set of consumers. Each sub-brand has a clearly defined audience and competency and a sufficiently large market to support it as well.This section is available only in the 'Complete Report' on purchase.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Financial Services companies acknowledging climate change dangers: Climate change is impacting financial institutions and the financial system. It greatly influences the types of activities that a financial institution may or may not fund. For instance, the increasing frequency of natural calamities like droughts, floods etc. is putting companies on a spot making it difficult for them to assess insurable risks and is also driving up insurance premiums. Banks are facing risks to fund the activities that contribute to climate change. The regulatory bodies are starting to respond to these developments causing the South African Reserve Bank’s (SARB) recent decision to join the Network on Greening the Financial System. The network consists of 42 central banks and supervisory authorities from across the world. It aims to drive effective environment and climate risk management in the financial services industry. Nedbank was the first commercial bank to introduce a green bond on the Johannesburg Stock Exchange. It has also committed to putting two climate-change-related resolutions in their next annual general meeting. They also hold the leadership position in renewable-energy financing and boast of carbon-neutral operations.

2. Active engagement in sustainable development finance: Nedbank focuses on material goals and targets through sustainable development. They are actively engaged in financing student loans and student beds (SDG4); financing of ongoing water projects essential to the country’s water supply, water treatment plants, sewage treatment plants (SDG6); financing of renewable energy projects (SDG7); providing banking solutions for individuals including zero-fee propositions, a stokvel product and a concierge service (SDG8); providing loan for the Ethiopian Railways Corporation for the construction of a strategic railway corridor, helped to deliver a US$294m buyers’ credit facility for the government of Zambia (SDG9); providing cross border remittances solutions to facilitate money transfer between 33 African countries (SDG10); financing of affordable housing for lower-income households, financing of green buildings and sustainable mobility in urban transport systems (SDG11); financing paper and plastic recycling facilities, innovations in farming techniques (SDG12); financing water source conservation programmes to protect SA’s essential water sources, providing financial support for mining rehabilitation (SDG15). The company also practices responsible finance and responsible investments.