Pestle Analysis of Banks in Singapore

1997 Words Jul 13th, 2013 8 Pages
Contents Introduction 3 PESTLE Analysis on Singapore's Banking Industry 3 Technological 3 Political 3 Social 4 Economic 5 Legal 5 Environmental 5 Discussion and Evaluation 6 Bibliography 7

Introduction

Singapore is a small country in South East Asia with no natural resources and limited population. However, the banking industry of Singapore is one of the leading players globally. This report aims to find out what are the factors that can make the banking industry thrive.
A PESTLE analysis would be provided from the viewpoint of a bank in Singapore. This is to make it more realistic as its aim is to give an overview sight on the business environment in Singapore to find out if there are any risks, threats and to minimise them.
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Social

Change in lifestyle, as Singapore is a developed country with low unemployment. Most of its citizens are demanding high class products to spend their money on this means that their wants and needs are ever increasing at a fast pace and that they are and have the spending power to purchase more luxury goods including expensive financial products especially in the private banking sector.
With the influx of foreign talents either for work purposes or to become new citizens, these people who are usually already wealthy, together with Singaporean citizens actually provide opportunities for the banking industry to capitalise on these changes. With an increase in population and wealth, people would require the services of the banks to create accounts or do fund transfer which includes both personnel and business usage.
As Singapore is a well developed country, the literacy rate is low. This means a positive impact on the banks as people would have market information at their fingertips to buy stocks, bonds and mutual funds, basically know what financial products to purchase and commit to. This means that there is a larger customer base for banks as compared to countries with high literacy rates.
According to a 2013 report produced by The World Bank, Singapore ranked 1st for ease of setting up and exiting a business. [Doing Business, 2013]. This is an attractive point for businesses not only banks who consider Singapore as another location to set up their

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