Rabobank Group SWOT and PESTLE Analysis

Strengths

1. Strong Dominance in Domestic Market: Rabobank is one of the largest cooperative banks in Netherlands. The group has 103 local members with more than 450 branches and 2200 ATMs. The group is also considered to be the second largest Dutch bank by assets. The local members operate as autonomous Rabobank serving more than 7.4 million local customers. The group’s roots lie in financing agricultural sector where the group holds 84% market share.

2. Customer-Focused to build long term relationship: The Rabobank group is considered to be ‘By the customers and For the customers’. The voice of the customers holds utmost importance in deciding bank’s strategic course. Such kind of customer participation builds long term relationship with the customer. The bank is collaborating with several other cooperative banks across the world ensuring each customer receive their appropriate services if a service is unavailable to them.

3. Extensive Research Activities to analyse economic development as well as develop innovative products for Food and Agriculture businesses: The Rabobank group undergoes extensive research activities through a separate division called RaboResearch where researchers analyse and forecast economic developments in Netherland as well as around the world. They also have separate Agribusiness research team to develop insights in this sector across the globe. These activities help the company to develop innovative products and asses risk for the company.

4. Diverse Work Culture in terms of cultural background, gender, age enable international growth: The group is dedicated to attaining diversity in work culture in terms of gender, age and cultural background which makes the organisation more innovative and creative. A diverse workforce enables them to cater the needs of customers and markets through a variety of perspectives enabling international growth. They aim to have one third of senior positions held by women by 2020.

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. Investments in green projects: Over the past few years, there is an increasing concern for the environment in the society and environmental sustainability with regards to investments is critical for consumer-centric financial institutions such as Rabobank. In line with the market demands, Rabobank came out with a €500 million green bond in 2017 which not only aims to give investors exposure to green projects but also links socially responsible fixed-income investors to small and medium sustainable businesses. The bank’s framework enables it to finance large solar and wind projects.

2. Partnership with UN Environment for sustainable agriculture: As a globally leading, global food and agriculture bank, Rabobank is involved in several agricultural and environmental initiatives. Rabobank has collaborated with UN Environment for financing smart and sustainable agriculture. This will involve the creation of one-billion-dollar facility for sustainable agriculture using public and private funding.