Market Trends Affecting BankAtlantic (BA)
Market Structure
Current market structure for BA holds true to the current lag in the economy. BA’s future as a bank is not at risk, nor is it in jeopardy at this time; however, there are some significant changes that are certain to be industry wide. Many financial institutions are under scrutiny from effects of the mortgage meltdown due to predatory lending BA managed to stay a full step ahead of the competition by avoiding involvement in lackadaisical underwriting guidelines. BA has stood strong with their standards and as a result is able to avoid a significant amount of loss, therefore; BA is able to move forward with minor threat in relation to its competition.
Present strategy at BA is to concentrate on what can be controlled, in a meeting dated 01/07/08 the 2008 goals for BA were identified as retention of deposits, and monitoring behaviors. BA associates are normally held to higher standards in terms of customer service, under the new level of expectations there is a demand to raise the bar in order to maintain customer loyalty. Although BA cannot control the economy there are certain measures that ensure BA can control the way their team handles customers.
Impact of New Companies Entering the Market
New companies entering the market place are doing so under extreme circumstances. In todays market there are many uncertainties regarding financial institutions and is more than likely not a very good idea to open a bank in order to make money. Although this is true there are still new banks opening and joining in on the competition. A new bank will normally begin with a campaign to raise capitol in order to turnaround and lend it out for a ...