The concurrence analysis is based on the market share of each bank and the range of services they offer. The market share are determined by the amount of asset each bank manages compared to the sum of all their managed assets. It is obvious that two banks are dominating the market : BNP Paribas and Banque Degroof Petercam.
It can also be seen that there are two kinds of banks : the so-called “universal banks”, such as BNP Paribas, ING, Axa, etc., are the banks who offer all types of possible financial services. These services can go from daily financial operations to investment solutions but also pension savings or any kind of insurance. Of course, they also propose personal and private banking.
The other type of bank is called “investment banks”. Those only focus on investment solutions for private customers or financial institutions. Each bank tries to differentiate itself by offering specific services in one or another field.
On that point Nagelmackers is really different because it offers the same retail services as the universal banks while being a private bank. This makes Nagelmackers what we would call an “elitist bank”, and is illustrated in the graph below.
However the fact that Nagelmackers proposes a wide range of services can make people doubt about their efficiency in doing it, and in consequence lead people to split their financial activities between universal banks and investment banks. We can not deny that Nagelmackers emphasizes its asset management services and adds to it multiple other services for daily financial operations, pension savings, etc. The asset management services form thus the core business of Nagelmackers and should then be efficient.
One last point that has to be mentioned is the fact that Nagelmackers might be losing some energy by offering its daily banking, insurance and loans services to non-premium clients (which means they are not financially able to enjoy the asset management services) since they are not cost effective for the bank and they will probably never be capable to reach the personal or private banking.
In a nutshell, Nagelmackers has a competitive advantage in offering a wide range of services (with an important focus on the asset management services) but might be losing some energy offering its daily banking services to non-premium customers and might suffer some concerns about its efficiency by giving so much services at the same time. From another point of view, this can allow people to complete every single financial tasks of theirs in one same place.
Competition
