- 1. What is Competitive Analysis in Banking?
- Why does this matter?
- 2. Key Approaches to Competitive Analysis in Banking
- Porter’s Five Forces Analysis: Understanding Market Pressure
- SWOT Analysis: Evaluating Your Strengths and Weaknesses
- Product & Service Benchmarking: Staying Ahead of the Curve
- Marketing & Advertising Analysis: Learning from Competitor Strategies
- 3. Tools for Competitive Analysis in Banking
- Alternative Competitive Intelligence Tools
- How to choose the right tool?
- 4. Best Practices for Banking Competitive Analysis
How to Conduct Competitive Analysis in Banking (2025 Guide)
February 14, 2025 5 min. read
Contents:
Track Competitors, Clients & Market Trends
AI-driven insights to monitor market shifts, client needs, and competitor moves — automating research and actions
Try it freeThe banking industry is undergoing a seismic shift. Traditional banks are facing increasing competition from fintech startups, digital-only banks, and even tech giants like Apple and Google stepping into financial services.
With so many changes, how can banks and financial institutions stay ahead? By leveraging competitive analysis.
Competitive analysis is no longer just about tracking interest rates or product offerings. Today, it’s about understanding:
• Which strategies your competitors are using to acquire customers
• What emerging trends are shaping the future of finance
• How AI and automation are changing the way financial services operate
In this guide, we’ll break down:
• The best approaches to competitive analysis in banking
• Key tools and frameworks for market intelligence
• How AI is revolutionizing banking insights
• Best practices for data-driven strategic planning
1. What is Competitive Analysis in Banking?
Competitive analysis in banking is the process of tracking, analyzing, and benchmarking competitors to identify opportunities and threats.
It helps banks answer critical questions:
• Who are our biggest competitors, and what are they doing differently?
• Are there gaps in our product offerings that competitors are filling?
• How are customer preferences changing, and which banks are adapting best?
• What trends in digital banking, lending, and payments are shaping the industry?
Why does this matter?
Because banking is no longer just about financial products—it’s about customer experience, innovation, and adaptability. Banks that fail to track competitors and trends risk falling behind.
2. Key Approaches to Competitive Analysis in Banking
There are several ways to conduct competitive analysis. Some are traditional, while others rely on AI and automation.
Porter’s Five Forces Analysis: Understanding Market Pressure
One of the most popular models for assessing competitiveness is Porter’s Five Forces:
• Rivalry Among Banks: How intense is competition between banks, fintech startups, and alternative lenders?
• Threat of New Entrants: Are new challenger banks disrupting the market?
• Threat of Substitutes: Are non-bank alternatives like Buy Now, Pay Later (BNPL) services replacing traditional banking products?
• Bargaining Power of Customers: How easy is it for customers to switch banks?
• Bargaining Power of Suppliers: How dependent are banks on external technology providers, payment processors, and regulators?
Example: Digital banks like Revolut and N26 have disrupted traditional banking by offering low-fee international payments and seamless mobile experiences. Traditional banks that fail to adapt risk losing market share.
SWOT Analysis: Evaluating Your Strengths and Weaknesses
A SWOT analysis helps banks evaluate internal strengths and weaknesses while identifying external opportunities and threats.
For example, let’s analyze JP Morgan Chase:
Strengths:
✔️ Strong brand and global presence
✔️ AI-driven banking solutions (robo-advisors, automated investing)
Weaknesses:
❌ High customer service costs
❌ Legacy banking infrastructure compared to fintech disruptors
Opportunities:
📈 Growth in digital payments and blockchain-based finance
📈 Expansion into underserved global markets
Threats:
⚠️ Increased competition from fintech startups and tech giants
⚠️ Changing regulations affecting lending and risk models
Why this matters: SWOT analysis gives banks a structured approach to identifying areas for growth and potential risks before they escalate.
Product & Service Benchmarking: Staying Ahead of the Curve
Competitor benchmarking involves tracking product features, pricing, and services to identify gaps and opportunities.
• Interest rates on savings and loans
• Credit card perks, cashback, and rewards
• AI-powered customer support and automation
• Business banking solutions and small-business lending terms
Example: Bank of America introduced Erica, an AI-powered chatbot, to improve customer service. Meanwhile, fintech firms like Chime attract customers with fee-free banking and early direct deposits. Traditional banks must evolve to remain competitive.
Marketing & Advertising Analysis: Learning from Competitor Strategies
Marketing is a huge investment for banks, but not every campaign delivers results.
How to analyze competitor marketing?
• Track Google Ads and paid social media campaigns
• Analyze competitor messaging and branding
• Monitor PR campaigns and industry partnerships
Example: Wells Fargo ran an aggressive reputation-rebuilding campaign after financial scandals, while Citibank focused on expanding its ecosystem-based financial services to differentiate itself.
3. Tools for Competitive Analysis in Banking
Signum.AI – AI-Powered Competitive Intelligence for Banks
Traditional competitive analysis requires manual tracking, research, and reports. This takes time and resources. AI changes that.
Signum.AI automates competitive intelligence by:
• Tracking competitor activity in real-time
• Identifying winning strategies in banking and fintech
• Detecting emerging market trends before they gain traction
• Generating strategic recommendations based on competitor data
Example: A global bank used Signum.AI to track digital marketing trends among fintech disruptors, enabling them to launch AI-powered savings accounts and personalized financial planning tools before competitors.
Alternative Competitive Intelligence Tools
Aside from Signum.AI, banks can also use:
🔹 Crayon – Tracks competitor pricing, product changes, and marketing strategies
🔹 CB Insights – Analyzes market trends and investment data
🔹 SimilarWeb – Measures website traffic, SEO rankings, and ad performance
🔹 AlphaSense – Focuses on financial intelligence and investor research
🔹 Pitchly – Helps banks create marketing and sales content from internal data
How to choose the right tool?
If your focus is market intelligence and competitive tracking, use Signum.AI, Crayon, or SimilarWeb.
If you need financial data and investment insights, use CB Insights or AlphaSense.
4. Best Practices for Banking Competitive Analysis
• Monitor Competitor Pricing & Offers – Regularly benchmark loan rates, savings account interest, and business banking perks.
• Track Digital Banking Innovations – Watch for new AI-driven financial planning tools, mobile banking features, and customer engagement tactics.
• Analyze Customer Sentiment – Understand how customers feel about competitors by tracking social media reviews and fintech adoption rates.
• Leverage AI for Faster Insights – Use Signum.AI to automate research and generate real-time competitive insights without manual effort.
Final Thought: In 2025, competitive analysis is not just an option—it’s a necessity. Banks that embrace AI-driven insights will be the ones leading the financial industry.
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About the author
About the author
Artem Gladkikh
Founder & CEO, Signum.AI
Building The Ecosystem That Transforms Marketers Into AI-Driven Experts.
