Strengths:
PNC makes Diversity and inclusion a major business focus. This creates a work space that is friendly and open to people of different backgrounds which overall improves the business and makes the atmosphere more desirable to future employees since there's support for workers with different experiences. PNC also has adequate capital that covers the companies risk exposure which is used to pay loses. Not being just U.S. based is another strength since they have access to the international market. PNC also has over 50,000 employees and over 380 billion in assets, which makes it one of the largest banks in the U.S.
Weaknesses:
A weakness of PNC, along with any other bank, is the fact that they are subject to the affects of contractions and recessions and can't do too much to prevent or change this. A contraction is a phase in the business cycle where the economy as a whole is on the decline. When these happen banks such as PNC give out less loans and less people are starting businesses or spending money. As a result business as a whole slows and money stops moving as much and this affects banks.
Opportunities:
PNC is currently working on implementing new technologies such as AI learning and other automated processes. These automated processes speed up and allow repetitive and time consuming work to be done faster. This frees up the workers who would normally be doing this work to do other things so overall the business process gets faster and more efficient. They've also recently introduced and improved their mobile banking which improves customer experience and likelihood to stay with PNC. Another opportunity PNC has is the fact that they're a big enough bank to make acquisitions that will grow and improve their business and outreach.
Threats:
Threats to PNC include low interest rates, other regional banks, and new regulation from the government. Banks such as PNC generally do better when interest rates are high. Banks profit off the marginal difference between the yield from cash invested in short term notes and the interest paid out to customers. When interest rates are high, banks income increases as the difference between yield and interest paid out increases with higher rates along with increased profitability on loans. However when interest rates are low income and profitability on loans decreases. Other regional banks also pose a threat to PNC's business as they can take away potential customers. These competitors include JPMorgan Chase & Co., Citigroup Inc., and Bank of America. Lastly, an increase in new regulations from the government can have a negative impact on PNC's business processes as it takes time to more work to adapt businesses practices to adjust to the new regulations and requirements which affects the business short term. However some regulations can be beneficiary so its purely situational.
Recommendations
Some recommendations for company growth and continued business for PNC would be to continue to branch out internationally and nationally towards the west coast, continue to make acquisitions, and to continue providing internships and recruiting at colleges. Branching out internationally more than PNC already has would be a good way for them to continue having access and doing business in the international market. Similarly, PNC branching out nationally would allow them to gain more customers and business by trying to enter the west coast market. The only downside would be more competition from west coast banks. The other suggestion that PNC should continue making acquisitions of other smaller companies/banks would help PNC continue to grow as a business. Continuing to make acquisitions would also build upon their strengths and weaknesses and likely improve the company as a whole, along with having access to new customers. The last suggestions of continuing to have internships and recruiting at colleges would help PNC gain skilled and reliable employees. PNC already has summer internships for junior and seniors since they're more likely to come back for their career, but opening up internships to sophomores would be a good idea. By having internships open to sophomores/rising juniors, students who aren't 100% sure of their career would have the chance to experience working at PNC and possibly get inspired by their time there and decide they want to work their in the future. PNC also recruits at local colleges such as Chatham, and should continue to do so since recruiting local talent is easier and more likely to result in gaining more employees then trying to recruit at places far away.
PNC's Internship Program
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