Developing Growth Strategy for a Leading Global Bank to Identify and Dominate Top 5 Non-Traditional SME Sectors

implementing processes

Client Challenge

Our client was a leading MNC bank in India that offered a wide range of SME banking products and services in the market. The client requested UC Strategy to identify the top non-traditional (unlike textiles, pharma, etc.) SME sectors, and their needs, products and services. They also requested us to study competitor’s offerings to those sectors and determine a strategy to dominate those sectors.

Our Approach

To develop the growth strategy, UC Strategy adopted the following approach:

  • Shortlisted 25-30 sectors after analysis of ~100 sectors based on industry size, SME concentration, margins and growth rate
  • Conducted primary and secondary research in the shortlisted sectors to understand key value chain entities, industry trends (growth/ profitability) and banking requirements to identify attractive segments
  • Defined banking revenue pools and used these to arrive at final shortlist of segments
  • Analysed the top segments and product offerings of competitor banks to them
  • Five segments were selected out of the final shortlist based on banking feasibility (nature of products required and ability of a foreign bank to offer those products) and client bank’s internal policies
  • Defined products and channels/ penetration strategy for the selected five segments

Our Impact

The client could identify a new set of 5 SME sectors that had potential but were under-penetrated by the banks. The client also received a strategy to gain traction within these sectors.

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