Friedrich Wilhelm Raiffeisen was the founder of the Raiffeisen Bank in 1862.During the time of economic time need in Germany he founded the first bank in Anhausen, Germany and accomplished the base of the striving need for further improvement of business banking. Since then the bank has branched out into various part of the world, especially Europe.
Some of the strengths of the Raiffeisen bank in Serbia are the brand recognition as a stable and reliable bank which has service quality and market knowledge and a strong client relationship. The employees working in the bank are highly educated, well trained and handpicked team of professionals whom are pleasant and motivated to its customers at all …show more content…
Some of the Raiffeisen Bank struggles are high dependency on corporate banking, overcapitalization - the bank has more debt and equity then its assets are worth, pressure on the organization because of following the cost cutting measures, expensive service (taking in mind the mid class customers pay in Serbia), non flexible criteria for new small business clients, extensive approval process and withholding tax issues due to economic status in Serbia, concretely. These are some of the weaknesses the bank is facing but looking at their progress over the years, in Serbia, it is a process of step by step improvement at lowering their …show more content…
The environmental issues are: changes in financial market, the aggressive takeover of their clients from their competitors, the environment's impact on their clients (which is a bit social as well), changes in the legal environment, all banks are focused on the same quality clients - since it is in all of the bank's interest to have affluent clients. The economic issues are: the high levels of non performing loans - NPL (borrowed money that the client has not given back in the required schedule), monetary restrictions which are connected also to the political status in Serbia, effects of the new government to come in 2016, the raise in unemployment which cause the NPL increment and smaller demand. The social issues: economic environment regarding unemployment - no jobs and loss of jobs which is high, involvement of affluent customers which are also in the competitor's interest. The legal issue is the legal regulations in terms of the taxes and contributions, as well the court procedures.
Looking over all of the SWOT criteria and taking in consideration how the bank has improved over the years I would say that I would be their client looking at the fact that they lower their weaknesses and threads if not less than a year. The Raiffeisen Bank has a good vision of their future and with the trending opportunities they give their growth an improvement on