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

Bfs Consulting

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 wanted to identify the top nontraditional (unlike textiles, pharm, etc.) SME sectors, and their needs, products and services. It also wanted 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:

  • Short-listed 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 the 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 was able to 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 in these sectors

 

 

 

 

 

 

 

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