Barclays

Deploying finance to help people achieve their ambitions by being a diversified transatlantic bank with sustainable returns.

Barclays SWOT Analysis

Updated: October 3, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Barclays was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Barclays SWOT analysis reveals a financial institution at a critical inflection point. Its diversified model, encompassing a top-tier investment bank and a leading payments business, provides a solid foundation. However, this strength is undermined by persistent profitability issues, a high cost base, and a market valuation that reflects deep investor skepticism about its ability to execute. The current strategic restructuring is a vital opportunity to address these weaknesses by driving efficiency and reallocating capital to high-growth areas like wealth management and US cards. Success hinges entirely on disciplined execution. Failure to deliver tangible improvements in RoTE will intensify threats from more profitable competitors and activist investors, making this a make-or-break moment for the current strategy and leadership team.

HSBC Lloyds Banking Group NatWest Group JPMorgan Chase Goldman Sachs

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deploying finance to help people achieve their ambitions by being a diversified transatlantic bank with sustainable returns.

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Strengths

DIVERSIFICATION: Balanced model with UK retail and global investment bank
PAYMENTS: Leading UK and US consumer cards business provides stable fees
IB LEAGUE: Consistent Top 6 ranking in investment banking league tables
BRAND: Strong, centuries-old brand recognition, especially in the UK
SCALE: Significant global footprint and assets under management (AUM)

Weaknesses

PROFITABILITY: Lagging RoTE (10.6%) vs US peers (15%+) and strategic goals
COSTS: High Cost:Income ratio (67%) driven by complexity and legacy IT
VALUATION: Persistent low price-to-book ratio (~0.5x) signals doubt
EXECUTION: Historical challenges in delivering on major strategic promises
UK ECONOMY: Over-exposure to the sluggish UK economy impacts retail bank

Opportunities

RESTRUCTURING: New plan to cut £2bn costs & reallocate capital is key
WEALTH: Grow wealth management by linking IB and private bank clients
US CARDS: Expand high-margin co-branded card partnerships in the US
EFFICIENCY: Tech-driven automation to reduce headcount and operating costs
RATES: A 'higher for longer' interest rate environment boosts net income

Threats

COMPETITION: Intense pressure from larger, more profitable US rivals
MACROECONOMY: Global economic slowdown hitting IB deal flow and lending
REGULATION: Increased capital requirements (Basel 3.1) pressuring RoTE
ACTIVISM: Shareholder pressure to spin off the investment bank persists
DISRUPTION: Digital-native neobanks chipping away at UK market share

Key Priorities

PROFITABILITY: Drive RoTE above 12% via cost cuts & capital reallocation
EXECUTION: Flawlessly deliver on the £2bn cost-saving & restructuring plan
GROWTH: Selectively invest in high-return areas like US cards and wealth
VALUATION: Bridge the persistent valuation gap through consistent delivery

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Barclays OKR

Updated: October 3, 2025 • 2025-Q4 Analysis

The Barclays OKR plan is a masterclass in focus, directly translating strategic imperatives into measurable commitments. It rightly prioritizes the twin pillars of boosting returns and flawless execution, tackling the core issues of profitability and investor skepticism head-on. The objectives are bold yet grounded, moving beyond generic goals to specify the 'how'—through capital reallocation, cost discipline, and targeted growth in high-margin segments like US cards and wealth management. This plan provides a clear, uncompromising roadmap. Its success will be the ultimate litmus test of leadership's ability to transform Barclays from a complex, undervalued institution into the high-performing, transatlantic bank it aspires to be, finally bridging the gap between its potential and its market valuation.

HSBC Lloyds Banking Group NatWest Group JPMorgan Chase Goldman Sachs

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deploying finance to help people achieve their ambitions by being a diversified transatlantic bank with sustainable returns.

BOOST RETURNS

Achieve superior, sustainable shareholder returns.

ROTE: Increase Group Return on Tangible Equity from 10.6% to over 12% by year-end 2026
CAPITAL: Reallocate £30B of risk-weighted assets to higher-return businesses like the US consumer bank
SHAREHOLDER: Execute £10B of capital returns to shareholders via dividends and buybacks over three years
VALUATION: Achieve a sustained price-to-tangible-book-value ratio above 0.8x from the current ~0.5x

EXECUTE FLAWLESSLY

Deliver our strategic plan with speed and precision.

COSTS: Realize £1B of the planned £2B in gross efficiency savings by end of the current fiscal year
SIMPLIFY: Reduce management layers by 15% and third-party consultant spend by 25% to increase agility
TECHNOLOGY: Decommission 15% of legacy applications to reduce IT complexity and run-the-bank costs
REPORTING: Implement a new dashboard to track progress on all strategic initiatives with 99% accuracy

DRIVE GROWTH

Win in our chosen high-return growth markets.

US CARDS: Grow US consumer bank balances by 15% through new co-brand partner launches and deeper penetration
WEALTH: Increase Assets under Management in the Private Bank & Wealth division by 10% through IB referrals
IB: Gain 50 basis points of market share in key advisory and capital markets league tables globally
UK BUSINESS: Increase lending to UK small and medium-sized enterprises (SMEs) by 5% year-over-year

REBUILD TRUST

Earn investor confidence through consistent delivery.

GUIDANCE: Meet or exceed quarterly earnings guidance for four consecutive quarters to build credibility
NPS: Improve Net Promoter Score with institutional investors from neutral to a net positive score
ENGAGEMENT: Increase proactive engagement with top 50 shareholders, with execs meeting each twice a year
NARRATIVE: Achieve a 20% increase in positive analyst report sentiment regarding strategy execution

METRICS

Return on Tangible Equity (RoTE): >12%
Cost:Income Ratio: <60%
CET1 Ratio: ~13.5-14.0%

VALUES

Respect
Integrity
Service
Excellence
Stewardship

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Barclays Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Barclays PLC FY 2023 Annual Report and Q1 2024 Earnings Release
Barclays Investor Day Presentation (February 2024)
Financial Times, Bloomberg, and Reuters coverage of Barclays' strategy
Barclays Corporate Website for leadership and mission statements
Publicly available competitor financial reports for peer comparison

HSBC Lloyds Banking Group NatWest Group JPMorgan Chase Goldman Sachs

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deploying finance to help people achieve their ambitions by being a diversified transatlantic bank with sustainable returns.

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What Went Well

IB: Investment Bank performance held up well versus a weak market backdrop
COSTS: Initial progress on cost-saving initiatives was positively received
US CARDS: US Consumer Bank continues to deliver strong, high-margin returns
STRATEGY: The new strategic plan provided much-needed clarity to investors
CAPITAL: Maintained a strong CET1 capital ratio well above regulatory minimums

Not So Well

UK RETAIL: Barclays UK performance was sluggish amid mortgage margin pressure
IMPAIRMENTS: Credit impairment charges rose, signaling economic headwinds
VALUATION: Share price reaction to the strategy update was initially muted
INCOME: Net interest income in the UK is facing significant headwinds
EXECUTION: Market remains skeptical of ability to hit long-term RoTE targets

Learnings

DIVERSIFICATION: The diversified model is crucial for weathering market cycles
EXECUTION: The market demands tangible proof of execution, not just promises
COMMUNICATION: Clear, consistent communication on strategy is paramount
COSTS: Cost discipline is the most controllable lever for improving returns
INVESTORS: Rebuilding investor trust requires consistent quarterly delivery

Action Items

COSTS: Accelerate the execution of the £2bn gross cost reduction program
CAPITAL: Expedite the reduction of RWAs in the capital-intensive IB
UK RETAIL: Focus on product innovation to defend UK mortgage market share
COMMUNICATE: Proactively update the market on restructuring milestones
GROWTH: Double down on capital-light growth in Wealth and US partnerships

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Barclays Market

AI-Powered Insights

Claude

Gemini

GPT

Barclays PLC FY 2023 Annual Report and Q1 2024 Earnings Release
Barclays Investor Day Presentation (February 2024)
Financial Times, Bloomberg, and Reuters coverage of Barclays' strategy
Barclays Corporate Website for leadership and mission statements
Publicly available competitor financial reports for peer comparison

Founded: 1690
Market Share: Approx. 15% UK retail banking, top 6 global IB.
Customer Base: Over 48 million customers and clients worldwide.
Category:
Financial Services
SIC Code: 6021 National Commercial Banks
NAICS Code: 522110 Commercial Banking
Location: London, UK
Zip Code: E14 5HP
Employees: 87400

Competitors

HSBC Request Analysis

Lloyds Banking Group View Analysis

NatWest Group View Analysis

JPMorgan Chase View Analysis

Goldman Sachs View Analysis

Products & Services

No products or services data available

Distribution Channels

Barclays Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Barclays PLC FY 2023 Annual Report and Q1 2024 Earnings Release
Barclays Investor Day Presentation (February 2024)
Financial Times, Bloomberg, and Reuters coverage of Barclays' strategy
Barclays Corporate Website for leadership and mission statements
Publicly available competitor financial reports for peer comparison

Problem

Individuals need safe, easy money management
Businesses need capital and payment services
Corporations need access to global markets
Investors need vehicles for capital growth

Solution

Digital retail banking and credit cards
Business loans and payment processing
M&A advisory, debt and equity underwriting
Wealth management and trading services

Key Metrics

Return on Tangible Equity (RoTE)
Cost:Income Ratio
CET1 Capital Ratio
Net Interest Margin (NIM)

Unique

Diversified transatlantic banking model
Leading position in UK/US payments
Integrated Corporate & Investment Bank
Centuries-old brand and trust

Advantage

Scale and network effects in payments
Deep, long-term corporate relationships
Diversified earnings streams
High regulatory barriers to entry

Channels

Mobile app and online banking
UK branch network
Relationship managers
Global investment banking teams

Customer Segments

UK consumers and businesses
US credit card holders
Global corporations and institutions
High-net-worth individuals

Costs

Staff compensation and benefits
Technology and infrastructure
Property and real estate
Regulatory compliance and litigation

Barclays Product Market Fit Analysis

Updated: October 3, 2025

Barclays empowers growth by connecting businesses and individuals to global financial opportunities. Its unique transatlantic model combines a leading investment bank with robust consumer platforms, simplifying complex financial needs. This structure provides clients with seamless access to capital, expert advisory, and trusted services to help them achieve their ambitions, securely and efficiently.

DRIVE GROWTH via our transatlantic investment banking and corporate franchise.

SIMPLIFY FINANCES with our integrated, digital-first consumer platforms.

MANAGE RISK with our global expertise and centuries of institutional trust.

Before State

Fragmented financial management
Limited access to global capital markets
Complex cross-border transactions

After State

Integrated banking and investment services
Seamless access to global financial flows
Simplified, secure financial operations

Negative Impacts

Missed growth opportunities for businesses
Inefficient personal wealth management
Higher transaction costs and risks

Positive Outcomes

Accelerated business growth and expansion
Optimized wealth creation for individuals
Reduced operational friction and costs

Key Metrics

Customer Retention Rates - Est. 85-90% in core UK banking

Net Promoter Score (NPS) - Varies, industry average ~20-30

User Growth Rate - Low single digits in mature markets

Customer Feedback/Reviews - 1,500+ reviews on Trustpilot (1.4 stars)

Repeat Purchase Rates) - High due to integrated product ecosystem

Requirements

Trusted, globally recognized institution
Deep expertise in diverse financial areas
Robust, secure technology platform

Why Barclays

Leverage transatlantic investment corridor
Provide expert advisory and execution
Invest in digital-first customer journeys

Barclays Competitive Advantage

Unique IB and consumer bank combination
Leading market position in key segments
Long-standing brand trust and history

Proof Points

Top 6 Global Investment Bank by fees
10m+ UK mobile banking customers
Leading UK payments processor (Barclaycard)

Barclays Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Barclays PLC FY 2023 Annual Report and Q1 2024 Earnings Release
Barclays Investor Day Presentation (February 2024)
Financial Times, Bloomberg, and Reuters coverage of Barclays' strategy
Barclays Corporate Website for leadership and mission statements
Publicly available competitor financial reports for peer comparison

Strategic pillars derived from our vision-focused SWOT analysis

Solidify top-tier global Investment Bank status

Defend and grow our UK consumer and business bank

Ruthlessly reallocate capital to high-return areas

Radically simplify to drive down structural costs

What You Do

A universal bank providing services from current accounts to M&A advisory.

Target Market

Individuals, small businesses, corporations, and institutional investors.

Differentiation

Unique transatlantic model connecting UK retail and US/global IB.
Leading payments franchise in both the UK and US consumer markets.

Revenue Streams

Net interest income from lending
Fees from investment banking and wealth management
Trading income from markets
Commissions from card services

Barclays Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Barclays PLC FY 2023 Annual Report and Q1 2024 Earnings Release
Barclays Investor Day Presentation (February 2024)
Financial Times, Bloomberg, and Reuters coverage of Barclays' strategy
Barclays Corporate Website for leadership and mission statements
Publicly available competitor financial reports for peer comparison

Company Operations

Organizational Structure: Divisional: Barclays UK, Barclays UK Corporate Bank, Private Bank, Investment Bank, US Consumer Bank.
Supply Chain: Primarily technology vendors, professional services, and real estate.
Tech Patents: Focus on fintech patents related to payments, mobile banking, and security.
Website: https://home.barclays/

Top Clients

Board Members

Barclays Competitive Forces

Threat of New Entry

MODERATE: Extremely high capital and regulatory hurdles protect full-service banking, but niche digital players can enter specific segments.

Supplier Power

MODERATE: Key suppliers are tech giants (Microsoft, AWS) and specialized financial data providers with some pricing power.

Buyer Power

MODERATE: High switching costs for corporate clients, but retail customers can switch more easily thanks to new regulations.

Threat of Substitution

HIGH: Fintechs and neobanks offer substitutes for payments, lending, and investments, often with better user experience.

Competitive Rivalry

VERY HIGH: Intense competition from US mega-banks (JPM, BofA), European rivals (HSBC, BNP), and UK peers (Lloyds, NatWest).

Analysis of AI Strategy

Updated: October 3, 2025 • 2025-Q4 Analysis

The Barclays AI SWOT analysis highlights a classic incumbent's dilemma: possessing immense data assets but being constrained by legacy systems and a cautious culture. The primary opportunity is not in speculative ventures but in systematically applying AI to core challenges—driving down the bank's stubbornly high cost base through automation and enhancing its sophisticated risk management functions. To win, Barclays must prioritize foundational investments in a unified data platform to overcome its siloed structure. The greatest threat isn't a single AI product, but rather a death by a thousand cuts from more agile fintech competitors who leverage AI for superior efficiency and customer experience. Focusing AI efforts on operational excellence and risk mitigation will yield the most immediate and substantial returns, directly supporting the bank's overarching strategic goals.

HSBC Lloyds Banking Group NatWest Group JPMorgan Chase Goldman Sachs

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Deploying finance to help people achieve their ambitions by being a diversified transatlantic bank with sustainable returns.

Strengths

DATA: Vast, proprietary transactional data from millions of customers
EXPERTISE: Deep domain expertise in risk, compliance, and market modeling
SCALE: Global reach allows for deploying AI solutions across markets
PAYMENTS: Rich card transaction data for fraud detection and marketing AI
RELATIONSHIPS: Access to corporate clients for developing B2B AI tools

Weaknesses

LEGACY IT: Aging core infrastructure hinders agile AI model deployment
SILOS: Data is often fragmented across different business divisions
TALENT: Intense competition for top AI talent from tech and fintech firms
CULTURE: Risk-averse banking culture can slow down AI experimentation
REGULATION: Navigating complex data privacy and model explainability rules

Opportunities

EFFICIENCY: AI-driven automation for compliance, KYC, and back-office tasks
RISK: Advanced AI models for credit scoring, market risk, and fraud
PERSONALIZATION: Hyper-personalize product offerings for retail customers
ADVISORY: AI-powered tools to enhance advice for wealth and IB clients
TRADING: Augment algorithmic trading strategies with machine learning

Threats

FINTECH: Agile fintechs using AI to offer superior, low-cost services
BIG TECH: Potential entry of tech giants with superior AI capabilities
CYBERSECURITY: AI-powered cyberattacks targeting financial institutions
BIAS: Risk of reputational damage from biased AI lending or risk models
OBSOLESCENCE: Falling behind peers in AI adoption could be catastrophic

Key Priorities

EFFICIENCY: Prioritize AI for back-office automation to hit cost targets
RISK: Deploy advanced AI in fraud and credit risk to protect the bottom line
PLATFORM: Invest in modern data infrastructure to break down internal silos
TALENT: Build dedicated AI centers of excellence to attract and retain talent

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Barclays Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Barclays PLC FY 2023 Annual Report and Q1 2024 Earnings Release
Barclays Investor Day Presentation (February 2024)
Financial Times, Bloomberg, and Reuters coverage of Barclays' strategy
Barclays Corporate Website for leadership and mission statements
Publicly available competitor financial reports for peer comparison

Profit: £6.6 billion (Pre-tax FY 2023)

Market Cap: £32.5 billion (approx. May 2024)

Stock Performance

Annual Report: Available on the Barclays investor relations website

Debt: Significant, typical for a bank (see balance sheet)

ROI Impact: RoTE at 10.6% in 2023, below target of >12%

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Legacy Incumbent

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Barclays has a high-ambition vision as a systemically important global bank, but its path is constrained by deep-seated profitability and cost issues, lowering its achievability. The OKRs are strong and category-shaping, focused on fixing the core business. However, significant weaknesses and threats temper its upside potential. The resulting Iconic Index reflects a legacy institution with the potential for a turnaround but facing substantial execution risk. The growth multiplier is modest, appropriate for a mature industry giant.

SWOT Factors

Upside: 66.7 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Flawlessly execute the cost-reduction and restructuring plan

Successfully reallocate capital to high-return divisions

Leverage AI to create a step-change in operational efficiency

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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