INTERNATIONAL BUSINESS

PESTLE ANALYSIS OF
BANKING INDUSTRY
SUBMITTED BY :
GROUP 3
GROUP 3 MEMBERS

AMIT SAHU
GOWSHIK NAIDU THOTA
PRAVEETHA PRAKASH
SHUBHAM CAHUDARY
INTRODUCTION

Banking sector plays an important role for the economy to function

appropriately. It has earned the significance similarly as lifeblood in the
economic and financial matters such as providing credits and
collection deposits from people, states, businesses, various individuals
and solving the households finance. In all the economic systems, banks
play a critical role in implementing financial policy as well as helps in
planning and prioritizing goals. Almost all banking system contributes to
achieve profits by using all means. However, most of the socialistic
systems perform various bank operations for the betterment of
economy and contribute to satisfy the social needs
Why PESTEL analysis is important for
Banking Industry ?

The PESTEL analysis of banking sector is used as a strategic tool

which helps to aid and assist the banking company growth. A
PESTLE analysis will provide a clear path which anyone with good
business knowledge can follows. The analysis will offer an outward
look and the environment based external banking on companies
because of the widespread activities which may impact and affect
the campaigns, infrastructures, and policies.
 WHAT IS PESTEL ANALYSIS

P :- POLITICAL FACTORS
E :- ECONOMIC FACTORS
S :- SOCIAL FACTORS
T :- TECHNOLOGICAL FACTORS
E :- ENVIRONMENTAL FACTORS
L :- LEGAL FACTORS
POLITICAL FACTORS
The overall restrictions, limitations, and boundaries are taken into account in the
banking system. This helps to support the new investment which will be
anticipated form Government. It is best to recognize the patterns that how stable
and shape the political environment I and what type of government policies will
help to impact the laws. These laws then regulate in the banking industry and are
implemented for the apparent taxed. It is advisable to check that the
government is involved in trading agreement or not because it will be able to
manage the banking market.
Following are the political factors which affects in making a stable banking
system
Government stability and its type
Laws, corruption and level of bureaucracy
The role of press or social media
Regulated and de-regulated trends
Tax policies
Employment legislation
ECONOMIC FACTORS
The economic factor of PESTAL analysis for the bank helps to determine the
current situation of the marketplace. You will be able to consider the general
position and shape of the market. The inflation and the interest rates and various
other conditions will be known by considering the economic factor. The primary
goal of the PESTEL analysis will help in the financial institution which contributes to
the present economic climate. Following are the important factors which affects
the economical banking industry.
A proper business cycle
The current economic growth
Costs of labor
Globalization
Unemployment rate
Interest rates and inflation
Change in economic environment
Levels of income distribution
SOCIO-CULTURAL FACTORS

The social, cultural factors affect the scheme, especially in the banking
sector. You will be able to determine money related issues and the
attitude of the market. The savings will be recognized, the approach
used and the productive loans which provide profitable results to the
clients. It will help to determine the attitude of various markets products
and foreign services. Social factors does involve
The growth of population
Health consciousness
Attitudes and lifestyle changes
Social, press and public attitudes
Health, social mobility, population attitudes
Changes in socio-cultural changes
TECHNOLOGICAL FACTORS

The advancement of technology plays a crucial role in the banking

industry. It is essential for the competitive advantage and proves to
be a core driver for the globalization. Technology provides a variety
of quality products and services at reasonable rate. For the banks,
the internet services are essential, and they have to utilize it to
provide more efficient and practical service. The technological
factors does play an important role in banking industry.
Technological transfer and its impact
Emerging technologies
Internet, remote working and communication costs
Rate technological change
LEGAL FACTORS

Legal factors leave a countless impact on the banking industry. The

trade structures, securities law, note regulations and various legal
necessities help to confirm the legal frameworks which are available in
the market. It is best to make assured that these structures facilitate the
commercial tools and are reliable for the international economy. For
the safe and secure banking transaction and procedures following are
the legal laws which affects industry
Safety and health laws
Discrimination law
Employment legislation
Antitrust rules
Consumer law
ENVIRONMENTAL FACTORS

It is the final and the last step of the PESTLE analysis which allows you
to deal with the environmental platform. To consider the
environmental factors, you have to consider the various locations
and their impacts on the trading which is sponsored by the banking
industry. The climatic changes affect the bank operations and most
of the time proves to be a hurdle in many cases. The environmental
factors includes
Natural disasters
Environmental factors
Usage Green products
Climate and weather changes
CONCLUSION
The banking system proves to be a great source of financing the
government. It takes many different measures to improve the well-being
of people. If any individual wants to excel in the sector, you need to be
wise and have to understand the PESTLE analysis. It will leave a real
impact on the objectives as well as on the goals of business.
It is essential that banking industry must consider the PESTEL analysis
before the marketing process. The factors provide the continuous
effects and fed the planning. With this analysis tool, you will be able to
understand operational environment, threats, and opportunities. It is
great is you will understand these factors because the associated
opportunities will open to you by minimizing the risks.
All the factors used in this technique helps to understand the market.
The framework will build the backbone of the strategic management
which will define the operations of company, strategies and
organizations goals.