•Vikas Tewethiya (A4020157)

• Manoj K Verma (A4019338)

FIRST DIRECT
•Logithan (A4018749)
•Manivannan (A4007479)

GROUP 9
STRATEGIC PLANING
CONTENTS

 INTRODUCTION
 HISTORY
 SERVICESOF FIRST DIRECT
 ENVIRONMENTAL ANALYSIS
 SWOT AND PORTER’S FIVE FORCES
 EXHIBITS
1&2
 CONCLUSION
 INTRODUCTION
 First Direct, is a telephone and internet based retail bank in the UNITED KINGDOM a division
of HSBC (HONKONG AND SHANGHAI BANK CORPORATION)

First direct has its head quarters in LEEDS WENT YORKSHIRE, ENGLAND and has 1.16 million
customer.

Industry - banking and insurance

First direct is based at two call centre in STOURTON LEEDS AND HAMILTON SOUTH LANARK
SHIRE,SCOTLAND.
HAMILTON is the larger call centre handles risk the leads call centre handles risk assessment
and processing roles.
 HISTORY
First direct formed on 1 Oct 1989 by midland bank one of the big“4,banks in the UK
first direct also became the part of(HSBC) by acquisition in 1992 and first direct
took its first call 12:01am on 1 Oct 1989 more than 1000 call were taken in first 24
hours
By may 1991 bank had 100,000 customer. By 1993 march it had 250,[Link] achieve
break even in Dec 1994. In April 1995 the bank gained its 500,000 customer its was
really achievable goal by any banking sector
In 2004 the bank has launched first directory a service whereby additional services
were added to currant account such as free text message banking annual travel
insurance and mobile phone insurance for fixed monthly charge
In April 2004 bank has launched internet banking plus ,a service where by account
with different banking and the information was unified under first direct internet
banking service
The bank has also recently launched a service whereby customers can access account
via their mobile phones in partnership with MONILINK
In February 2007 first direct become the first UK bank to introduce a fee free basic
financial transactional fuelling concern for their competitors.
 SERVICES OF FIRST DIRECT
93%customers are extremely or very satisfied with their telephone service helping
to make us the recommended bank in the UK.
First direct introduced differentiation in the traditional banking system by
introducing the following revolutionary services.
INTERNET BANKING
Secured access of accounts at home or abroad online security guaranteed fully
integrated with personal telephone banking .
MOBILE BANKING
Real time balance on demand to your mobile instantly top-ups for the pay as you
go mobile phone from 1january 2011mobile mini statement will cost 25p and on
balance enquiries just 20p.
TELEPHONE BANKING
First direct handle around 235,000 telephone call every weak first direct takes
over 13,000 call a day out side working hours can call first direct any time of
day or in the night seven days a weak,365 days a year to take out a loan or pay
bill .
 SWOT ANALYSIS OF FIRST DIRECT
STRENTHS
First direct has strong customer service ,
They have top management support
They are also improving continuously their services
Innovative product branchless banking,
Provision of round the clock banking and personalised services.
WEAKNESS
Not being able expand out side UK ,significantly
Not been able to exploits the strength of the present company (HSBC).
Call centre service being relied on staff any deterioration of call centre service might
pave loosing customers’
First direct is highly relies on IT and any IT failure might cause of customer dissatisfaction leading to loss
of business.
Opportunity
Opportunity to launch more innovative product which suit to customer requirement
During economic down turn -ability to step in to the foreign market with the success achieved and
Experience gained in UK .
THREATS
There may be threats from overseas making first direct less attractive to customer if new and innovative
financial products are not introduced time to time making less attractive to customers .
 PORTER’S FIVE FORCES
POTENTIAL NEW ENTRENTS
First direct may attract either competitors locally or from abroad . This because they are
enjoying higher profits from fifth year onwards. Protection can be done by implementing
superior technology and customer services.
SUBSTITUTES
Traditional banking can be a substitute. But its not threatening because they are not making
profits as much as first direct.
BUYER POWER
Customers are the buyers and first direct do not face any threats from them because 93% first
directs customer are satisfied with their service.
SUPPLIER POWER
First direct depends heavily on telephone and internet service provider any increase in
charges and disruption of such service might force greater challenge .
COMPETITIVE RIVALRY
Truly market leader and enjoying significant market share not expected threat in the very
near future
EXHIBIT - 1
EXHIBIT- 2
EXHIBIT- 2
It clearly shows that the internet banking and
telephone banking are on the rise compared
to traditional banking activities, such as
walking on to a branch for deposits and
withdrawals etc.
 CONCLUSION
First Directs approach towards the market is
resource based and they’re clearly exploiting the
resources in their hands such as high skilled and
trained manpower supported by the technology.
Their profits have been on the rise from 1995 until
recently. Even the economic downturn
experienced by both Europe and America is not
affecting them significantly while all their rivals
have affected badly.
Their introduction of new products such as mortgage
for £ 90/month which is a big attraction to
customers. This is an innovative product even
during the time of recession.