BCG Matrix of Banking Industry 

The banking industry and financial institutions create demand for deposits and receive deposits from the clients and mass public and offer loans to individuals and companies. The capital and banking market performs and manages the loan lending activities. Today, we’ll discuss the BCG matrix of banking industry; its four growth-share matrix analysis quadrants; stars, cash cows, question marks, and dogs.

Unique Product and Brand Features of the Banking Industry

• Efficient system
• Smooth performance of transactions
• Easy deposit and withdrawal process
• Timely triggers in case of bankruptcy
• Easy loan procedure
• Online and digital banking service
• Making the right and profitable investment
• Easy access to other assets and services

Best Selling Categories and Brands Market Share of Banking Industry

• China Merchants Bank
• Regions Bank USA
• BbandT Corporation USA
• Fidor Bank Germany
• Revolut UK
• ICBC China
• Goldman Sachs USA
• Babb Switzerland
• Iam Bank Kenya
• JP Morgan Chase USA
• Citi Group USA

Top Items with Increasing Growth Rate of the Banking Industry

• Current account services
• Saving account services
• Debit card services
• Credit card services
• Loans
• Investment services
• Netbanking
• Digital and online banking services
• Other financial services

The BCG matrix of banking industry would analyze the four growth share matrix analysis quadrants; stars, cash cows, question marks, and dogs. Here’s the banking industry BCG matrix analysis example growth-share matrix analysis as follows;

BCG Matrix of Banking Industry 

Let’s discuss the four growth-share matrix analysis quadrants in the BCG matrix of banking industry; they’re as follows;

Stars of the Banking Industry

The star quadrant in the banking industry BCG matrix analysis example of growth-share analysis comprises such financial products and services that have higher market share and higher growth rate. They contribute significantly to the revenue, sales, and overall profitability of financial institutions. However, some of the key star financial products and services in the banking industry of growth-share matrix analysis examples as follows;

I-Debit & Credit Cards

Banks issue debit and credit cards to individuals based on their customer demands and requirements. Customers use their bank cards for various types of transactions; the banks earn a specific amount of fee for every transaction both from the receiver and payer. It has a higher growth rate and higher market share. According to an estimate, the card payment and transaction would reach 12.9 trillion USD by 2025.

II-Digital or Net Banking

Digital and online banking are the top growing trends; they allow users and customers to carry out transactions without anyone’s interference. It has made banking and transactions much simpler and easier. That’s why it has a higher growth rate and higher market share. According to an estimate, the global market size of net banking in 2021 was 14.80 billion USD and it would reach 47.37 billion USD by 2030.

Cash Cows of the Banking Industry

The cash cow quadrant in the banking industry BCG matrix analysis example of growth-share analysis comprises such financial products and services that have higher market share and slower growth rate. They contribute significantly to the revenue, sales, and overall profitability of financial institutions. However, some of the key cash cow financial products and services in the banking industry of growth-share matrix analysis examples as follows;

I-Investment Banking

Investment banking offers loans and funds to startups businesses and corporations. It contributes significantly to the revenue stream of the financial institution. However, the reason its growth rate is slower is due to financial market saturation and risk analysis to ensure the right banking investment. According to an estimate, the global market size of investment banking in 2022 was 155.9 billion USD and it would reach 335.8 billion USD by 2032.

II-Deposit

Deposits are the main source of revenue and earnings for the financial institution and banking industry. They allow banks to offer loans to businesses and earn money from it. However, the reason for the slower growth rate of deposits is the entrepreneurial mindset of individuals and the growing self-made business trends. According to an estimate, the Bank of America has the largest deposit of 1.747 billion USD in 2021.

Question Marks of the Banking Industry

The question mark quadrant in the banking industry BCG matrix analysis example of growth-share analysis comprises such financial products and services that have lower market share and higher growth rate. They have the potential to contribute to the revenue, sales, and overall profitability of the financial institutions. However, some of the main question mark financial products and services in the banking industry of growth-share matrix analysis example as follows;

I-Self Service Banking

The world is moving towards self-service banking or branchless banking; where customers would perform all types of transactions on their smartphone. It is highly beneficial for the banking industry and financial institutions that they don’t have to carry the cost and expense of maintaining branch networks at the national and international levels.

II-Paperless Currency

Digital currency or paperless currency is a highly growing trend. This is because paper currency carries a lot of risk of counterfeiting and security issues. Digital currency allows you to perform all types of transactions without worrying about checking the authenticity of currency notes.

Dogs to Banking Industry

The dog quadrant in the banking industry BCG matrix analysis example of growth-share analysis comprises such financial products and services that have lower market share and lower growth rate. They don’t contribute to the revenue, sales, and overall profitability; instead, they consume a lot of capital resources of the financial institutions. However, some of the main dog financial products and services in the banking industry of growth-share matrix analysis examples as follows;

I-Assets Liquidity Shortage

Asset liquidity shortage is the most recent crisis the banking industry experienced in 2023 in the US. As a result, three of the American banks failed within two weeks and the regulatory authority forced them to shut down. Usually, assets are highly beneficial; but some of them have lower growth rates and lower market share.

II-Pension & Retirement Plans

Pension and retirement plans are highly beneficial for an individual. However, it becomes a serious crisis for financial institutions when they are unable to pay retirement and pension funds to individuals. However, it happens because of various reasons and factors; increasing aged population, lower mortality rate among aged people, higher interest rate, and lower young population. Such types of plans have higher risk rates and lower growth rates.

Conclusion: Banking Industry BCG Matrix Analysis Example |Growth Share Matrix Analysis 

After an in-depth study of the BCG matrix of banking industry; we have realized that financial institutions play a key role in the growth and development of the economy. If you are learning about the banking industry BCG matrix analysis examples; then you should keep in mind the abovementioned growth share matrix analysis quadrants; stars, cash cows, question marks, and dogs.