from the desk of  Ron Buck

Commercial Lending Case Study

Many of our clients are involved in a SWOT analysis as part of their 2016 strategic planning.  A SWOT analysis is a structured planning method that can be used to evaluate the strengths, weaknesses, opportunities and threats involved in any part of banking.  A SWOT analysis can be done at any level of the organization to develop effective strategies.  I recommend holding a white board session to identify the factors in each of the four categories and using an experienced facilitator to lead the white board session. Alternatively, you can ask team members to individually complete a questionnaire and then hold your white board session and compile results.

This paper is about a $20 Billion bank that used the following analysis to achieve:

  • A 29.6% increase in sales velocity
  • A significant improvement in liquidity and a 18.2% increase in NIM
  • A 25.6% increase in ROA.
  • The percentage of relationship managers achieving their goals has improved from 37.2% to 59.6%.


2015 SWOT Analysis For A $20 Billion Bank (Commercial Lending Group)

  • Strengths
    • Solid balance sheet
    • Strong brand and community involvement
    • Experienced and tenured staff with strong community relationships
    • Customer retention and loyalty
    • State-of-the-art sales technology
  • Weaknesses
    • Higher cost of liquidity in comparison with most competitors
    • Historical sales execution – inability to execute a sales strategy
    • Poor sales processes
      • Slow sales velocity due to qualification/underwriting process – resulting in poor liquidity, NIM and ROA.
      • Poor pipeline efficiency ratio.
      • Competitors close loans 30% faster than our bank.
    • Lack fundamental sales skills
    • Frontline accountability and coaching – low user adoption of sales technology
  • Opportunities
    • High yield investment products
    • Building new client relationships
    • Reduced competition in market due to M&A activity
    • Competitors distracted due to M&A activity in market
    • Strong local economic growth and job growth
    • Cross-selling to existing  clients
    • Potential Fed rate increase
  • Threats
    • Continued low interest rate environment
    • New competitors entering market
    • Competitor pricing strategies and ability to close loans 30% faster that our bank
    • New digitally-enabled finance networks and alternative lenders
    • New receivable finance and factoring products offered by new competitors
    • Regulatory environment

To Learn More, Click Below:

SWOT Case Study – Commercial Lending


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