Answer to Question #234285 in Management for Suzan

Question

Discuss driving force that would give standard Bank a competitive edge in the market

Answer 1

Competition determinants

In determining the competitiveness of the bank, we look at the banking market structure, contest-ability, inter-industry, institutions, and macroeconomic environment. The following variables are specified for the financial system's structure: i) bank concentration, which is defined as the market share of the country's five largest banks; (ii) bank density, which is defined as the share of assets held by foreign-controlled and government-controlled banks, respectively; and (iii) foreign and state bank ownership, which is defined as the share of assets held by foreign-controlled and government-controlled banks, respectively. It's worth noting that banks that are 50% or more government and foreign-owned are counted as state and foreign-owned, respectively.

In achieving the competitive edge, Standard Bank must ensure that it is optimizing the channels to be cost effective, ensure employee productivity through automation solutions to boost efficiency, deeply invest in technology to reduce redundancy costs, invest in agency banking, and creating a culture that prioritizes efficiency.