Banking sector ( PESTLE and SWOT analysis) Essay

Banking sector ( PESTLE and SWOT analysis) - Essay ExampleThe bank has integrated its investing banking, wealth management and asset management services with the Swiss operations to provide high type financial solutions (UBS-a, 2011). The bank is relatively new. It came into existence in 1998 with the merger of Swiss Bank Corporation and Federal Bank of Switzerland. Today the bank has grown as a global firm with a unfaltering market position in Europe, US and Asia and a higher employee base in US than Switzerland, notwithstanding a dominant presence in the Swiss retail market. Most of the growth achieved has been through the M&A (mergers and acquisitions) deals. PESTLE Analysis of UBS The PESTLE analysis of the banking sector examines the various factors that affect the industry thereby impacting the companies operating in the industry. PESTLE is an acronym of semipolitical, economic, social, technological, solid, and environment analysis. The factors relating to economy incl ude interest rates, economic growth, rate of ostentation and exchange rates. The social factors include changes in buying patterns, culture, changes in consumer preferences etc. Technological factors include R&D, advancement in technology, innovation, new inventions etc. The legal factors include the legal framework of the rural area i.e. whether the legal environment in a country is conducive to conducting business activity, the banking rules and regulations in the country whether it is stringent or liberal etc. The environmental factors generally do not have any influence on the performance of the banking sector. Political- The political condition in Switzerland is quite stable. In fact some economists assigned the political stability of the country as an important factor that propelled the countrys economic success. The political dodging of the country is very effective as is evident from the high authoritative powers granted to the county and state governments. As compared to the Federal government the state level offices are in a position to react much efficiently and are equipped with better decision making power. The success of the banking sector in the arena of asset management is owing to a traditionally stable political condition, reliability and high dexterity of banks and the overall good performance of the investments (Swiss Bankers Association, 2004). A stable political environment is conducive for the operations of the banks. Economic- The country enjoys the status of tax harbor that makes it an attractive destination for making investments. Switzerland is renowned as the most comfortable and advanced countries in the world. The per-capita income of Switzerland is one of the highest across the globe. The prosperity of the country is on account of its trade with exports creation a source of income and import of necessary raw materials contributing to the wide range of indigenous supply of goods and services. The domestic currency is amo ng the soundest currencies in the world. Moreover the country is reputed for high quality financial and banking services. The investment in a country thrives on a stable exchange rate. As mentioned above the country attracts good investments on account of a strong domestic currency. The performance of the banks depends strongly on this factor. The banks can wander good investments from the overseas as the clients are convinced about the value of their investments. Besides the added benefits of tax haven is also one of the reasons that make the region an