Banking business plan

Banking business plan

Are you going to open a bank?  here is a complete sample of a commercial banking business plan template that you can use for FREE  .

Okay, we’ve gone through all the requirements to start a bank, we also took it a step further by analyzing and writing a sample bank marketing business plan template backed by actionable guerrilla marketing ideas for banks . So let’s move on to the business planning section.

Why create a bank?

Starting your own bank is an important step that requires careful planning and preparation. Detailed information on the founders, business plan, management team, finances, capital adequacy, risk management infrastructure and other relevant factors should be provided to the competent authorities.

There are also a number of regulations and legal requirements that you must follow in order to set up your own bank, some of these requirements depend on the rules of the niche in which you want to set up your bank.

As difficult as the task of setting up a bank is, anyone looking to open their own bank can reap the many benefits of a large investment. Although the process of registering and setting up a bank involves long planning and a relatively complex licensing process, once completed, the owner can conduct financial activities in their chosen niche.

Please note that as the very first step when you get started, your bank needs to choose the niche and type of business you want to participate in. Before getting the required clearance from the financial regulator, it is very important to determine whether you want to specialize in investment banking or trade finance.

The advantages of owning your own bank are enormous and include the possibility of making big profits in a short period of time. Know that if you know your target market and the specific requirements of your target market, you will be in a better position to provide a range of attractive services. To successfully start and run this business, it is recommended to seek help from a professional consulting firm.

With the guidance and guidance of expert consultants, you will be able to build a professional level banking institution. Also, keep in mind that any proposed bank must first obtain approval from the federal or state banking charter. Before granting a charter, the regulator must determine that the applicant bank has a reasonable chance of success and that it will operate in a safe and reliable manner.

The potential bank must then obtain federal government approval for deposit insurance. Deposit Insurance Corporation. Additional approvals are required from the Federal Reserve if, upon establishment, the holding company controls a new bank or a government-registered bank becomes a member of the Federal Reserve.

Sample banking business plan template

  • Industry overview

According to reports from the global banking industry, which is part of the larger financial services market, bank loans remain the number one segment of the market, accounting for around 60% of the total market in value. Statistics show that the EU is the largest regional market, with more than 57% of the world market.

Note that the economic slowdown that began in 2008 affected the sector and led to the collapse of several financial institutions, which in turn led to the study of practices and the implementation of new guidelines in the sector. banking.

But there are reports that the sector is starting to recover, and cross-border investment is one of the areas contributing to the recovery, with a few large banks dominating some domestic markets. The benefits of cross-border practices include economies of scale, even if institutions have to compete with established national banks.

It is very important to specify that in the world of retail banking and bank lending, mortgage lending is the first market segment, representing almost 76% of the total market in value. Other key segments of the banking industry include private banking and payments.

Note that in the US banking sector, experts believe that market growth will be driven by cross-border expansion as barriers to cross-border investment are overcome.

Competition among international banks is also expected to drive market growth with the introduction of new products, lowering costs and launching new services. The report also states that mobile and internet banking are increasingly intertwined, particularly with the advent and success of smartphones. This provides consumers with convenient access to Internet banking services.

Keep in mind that the global mobile Internet market will continue to drive the expansion of the mobile banking industry. The report showed that banking institutions are responding to this by launching downloadable apps and encouraging consumers to bank online and use mobile devices by introducing mobile and internet banking services.

Summary of the bank’s business plan

Apex Investment Bank, LLC (AIB LLC) is a Portland, Oregon-based investment bank that will provide investment packages, underwriting, proprietary trading, and investment management to its investors. Our goal at AIB LLC is to create value for owners, employees and investors by creating a third generation investment bank.

This generation is clearly identified in the innovative research work of Lincoln Swan Co., Inc. and Netley Strategic Business Group as a step in the investment industry that requires a specific skill set to be successful. At AIB LLC, we have used this research, along with other research, and perhaps the most important of our own experiences in the industry, to define our client’s roadmap to success.

The location of Portlands is advantageous for several industries. The relatively low cost of energy, available resources, north-south and east-west, international terminals, large marine vehicles, and intercontinental railways on the west coast are all economic benefits.

AIB LLC will be structured as a limited liability company with excellent plans to take advantage of the industry research conducted by one of our founding entrepreneurs, Solomon Drane, during his professional research career in investment management. Over the past three years, Solomon Drain has made research visits to the investment offices of over 80 companies.

He has also held countless meetings with key investment professionals from around the world in person or by conference call. At AIB LLC, we plan to offer our clients the ability to take minority interests in return for contributions to our working capital and the provision of seed assets to create the investment products described here.

It is very important to specify that this document in itself does not create any proposal or give any guarantee, financial or otherwise. It is a very detailed business plan designed to strategically dictate the plans and plans of AIB LLC for the next five years. It is opened for correction or improvement during or after the specified time.

  • Our products and services

At AIB LLC, we will provide investment packages and buy securities for sale to private investors and people in general. the public among companies seeking to raise capital. In the beginning, at AIB LLC, we will endeavor to sell debt securities only on behalf of our clients.

The standard rate for this service is 8% of the total value of the signed instrument. At AIB LLC, we will also seek capital from accredited investors in order to use that capital to produce securities held for sale. Our goal is to receive a cumulative annual return of 30% to 35% per annum on the capital invested in our Bank’s portfolio. We also plan to ensure that our management maintains a 25% stake in AIB LLC.

  • Our vision statement

Our vision at AIB LLC is to become a leading investment bank that will provide investors with subscription income, advisory income, dividend income, capital gains and interest income.

  • Our mission statement

Our mission at AIB LLC is to ensure swift and efficient execution of investment decisions across all portfolios, and to ensure that research and transaction rotation is used to prevent any type of systematic advantage or disadvantage. Account.

  • Our corporate structure

At AIB LLC, we understand that the strength of our management team and board of directors is perhaps the most important factor in building a bank and effectively ensuring its future success. In our detailed research, we also found that all of our senior executives must be experienced bankers with a history of significant success in order to approve a new banking charter.

The other reasons we have made sure our board is made up of people with successful careers in business, banking and other fields and with an understanding of the disciplines required.

We also understand the role of the board and management as investors and how important they are.Regulators and other investors will see the investments of these directors and senior officials as an important sign of their commitment to bank.

We also understand that classic investment banking operates under a tighter and tighter hierarchy than most businesses or financial institutions. We took the time to analyze our market and this is what we need, so we decided to start with the workforce listed.

  • General manager
  • Senior Vice President
  • Vice president
  • Lawyer in investment banking
  • Investment banking analyst
  • Marketing Manager
  • Accounting
  • Cleaner
  • Security guard

Roles and responsibilities

General manager

  • Broaden and / or extend the sectorial coverage of the bank,
  • Partner with leadership companies to develop and build a bank
  • Will work tirelessly to deliver great results to business clients
  • Participate as a key member of the management team, contributing to the strategy, growth and success of the company
  • Lead efforts to complete sales assignments and acquisitions, refinancing, recapitalization and restructuring.
  • Interact seamlessly with prospects, clients, buyers, investors, and lawyers. on all aspects of an MA and / or fundraising transaction
  • Send a team of junior bankers to take care of all elements of researching and executing transactions.

senior vice president

  • participates in the execution and management of promotions, which will include preparation and structuring of material, logistics management, problem identification, analysis and solution.
  • Responsible for mergers and acquisitions, and also manages the creation of a list of buyers, their contacts, compilation of relevant material, financial analysis and private equity placement.
  • Reviews and identifies transaction opportunities, formulates and performs actual financial analysis, and develops various types of financial plans.
  • He is engaged in the sale or sale of products and services of organizations to new clients and may also participate in other projects.
  • May participate in due diligence meetings with lay or private investment managers and create relevant challenge reports that include their perspectives.
  • Can participate in the analysis of investment products and their validation through the efficient use of various investment data and associated software applications
  • Monitors investment products and their performance.
  • Analyze relevant statistics to assess product fit.
  • Mana maintains a relationship with investment management organizations and updates it regularly with valuable input from them.
  • Attends industry conferences and trainings to present innovative ideas to clients
  • Responsible for directing and supervising the work of subordinates.

Vice president

  • Invite potential clients such as private business owners, public companies, and private equity firms.
  • Conceptualize, organize and present new business presentations.
  • Lead the implementation of transactions in various industry groups.
  • Manage, train and develop banking analysts and partners.
  • Development of marketing and new business presentations.
  • Financial analysis and modeling follow-up.
  • Perform and analyze industry research.
  • Creation of client presentations, proposals, letters of commitment. minutes, legal agreements and offer memoranda.
  • Build and develop customer relationships.

Investment banking partner

  • Management and assistance in the preparation of financial models and business valuations
  • Creation of marketing presentations for clients
  • Participate in customer meetings
  • Perform company-specific industrial and commercial due diligence with regard to transactions
  • Preparation of customer order memoranda
  • Help in preparing fairness opinions
  • Participation in editorial sessions for share offers
  • Creation of marketing materials for our sales organization
  • Assistance in the development and development of the customer relationship
  • Develop an understanding of the main trends affecting the equity capital markets.

Investment banking analyst

  • Development of various types of financial models for debt and equity valuation for mergers, acquisitions and capital raising transactions.
  • Use a variety of assessment methods: comparable companies, use cases, and DCF.
  • Develop recommendations for product offerings, private equity transactions, mergers and acquisitions and reviews.
  • Prepare and review material used in client financing, including investment memoranda, guidebook presentations and book collections.
  • Develop relationships with new and existing customers to grow your business.
  • Execution of due diligence, research, analysis and documentation of real transactions.
  • Creation of presentations for client portfolios.

Director of Sales and Marketing

  • Responsible for organizing external research and coordinating all internal information sources for the preservation of organizations. better customers and attract new ones
  • They are expected to understand, prioritize and reach new partners as well as business opportunities etc.
  • The challenge is to understand the development opportunities; monitors developers and contacts
  • The director’s duties include monitoring implementation, protecting client interests and communicating with clients
  • Keep all customer contacts and information
  • Represent the company at strategic meetings
  • Helps increase sales and business growth


  • Follow the rules and make sure toiletries and supplies aren’t out of stock.
  • Ensures cleanliness inside and outside the company
  • Handles all other tasks assigned by the Vice President

Security guard

  • A security guard is responsible for protecting the company and its surroundings
  • Also monitors traffic and organizes parking
  • He is responsible for giving safety advice when needed
  • You should also patrol the building 24 hours a day.
  • Safety reports should be sent weekly i>

SWOT analysis of the banking business plan

At AIB LLC, we understand that the very first step in starting a new bank is creating a strong business and strategic plan. We believe that this plan should take into account the proposed activity of the new bank, its financial and managerial resources and prospects for success, the convenience and needs of the population, as well as the impact of competition.

This strong business and strategic plan, supported by detailed financial projections and related policies and procedures, forms the basis for a successful implementation of the bank statutes.

At AIB LLC, we hope to create a profitable investment bank that will meet the needs of our clients and generate value for our founders. We have taken the time to conduct a detailed SWOT analysis for AIB LLC. Details and results are described below.

According to our SWOT analysis, our strength at AIB LLC comes from the expertise and experience of our management team. Thanks to the experience and discipline of our team, thanks to our SWOT analysis, we can create a reliable company profile even before applying for investment banking agreements with corporate organizations.

As revenues increase and the investment banking market grows, so does the level of competition in the industry. Due to very low barriers to entry, any person or entity can register as an investment bank after passing the appropriate exams and registration.

The banking sector has become one of the fastest growing industries in the US economy. Note that computer technology allows financial firms to provide advisory, investment banking, and brokerage services across the country.

In the past, most financial companies had to be in close proximity to Wall Street to provide their services. customers of the highest level of service. This is no longer the case, as a business can access virtually every aspect of the financial markets through Internet connections and specialized trade and investment management software.

According to our SWOT analysis, the risks we will face include:

  • Market risk  . There is a strong correlation between the growth rates of investments. industry and stock market indicators. While the evidence points to an attractive environment for the stock going forward, predictions cannot be made with absolute certainty.
  • Operational risk  It is clear that our products are measured by their performance:  while the  objective is to achieve competitive results over periods of three to five years, short-term periods can lead to performance degradation depending on critical parameters. .
  • Higher Business / Operational Risk  In the third full year of operations, assets under management must generate sufficient income to support all operations. Otherwise, we may receive additional funding or reduce costs.


  • Market trend

Experts believe that this industry will continue to grow in all regions of the world, especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia, Korea South, Japan, China, etc.

According to industry data, the industry generates 105 billion dollars. United States per year, with a projected annual growth rate of -13.0% in 2011 and 2016. Over the five-year period, the number of sector activities has not changed much, the share of the turnover. business attributable to each activity has experienced significant volatility.

It is believed that the products and services of the investment industry vary widely from company to company, largely depending on the size of the operator.

It is very important to clarify that small and medium investment banks target niche industries and small businesses and rely more on traditional investment banking activities such as underwriting and financial advice. Alternatively, the major players in the sector receive a significant portion of their trading income.

Note that one of the factors that attracts entrepreneurs to investment banking, despite the huge capital requirements and high risk, is that the business is profitable. We have made plans to always keep up with industry trends, obtain the required certifications and licenses, and meet the standard capitalization of a US investment bank.

  • Our target market

Our target market at AIB LLC will depend heavily on the phase of our product in its development cycle. Keep in mind that most marketing opportunities will appear after the first year of product development. But we are still convinced that some of the early opportunities exist.

For example, our bank may use its translation agent distribution services to place the product on a leading online platform. Note that additional opportunities include marketing for programs that specifically invest in future managers.

At AIB LLC, we also believe that access to high net worth and the retail market may be limited, even in the early stages, due to similar innovation capabilities and established customer relationships.

  • Our competitive advantage

Our competitive advantage at AIB LLC can be summed up in three things commonly associated with investment firms: people, processes and productivity. While our business plan covers many areas (market research, financial projections, etc.), we believe there are two areas that will definitely determine the level of success achieved by AIB LLC.

We believe that the very first people. Brilliant, energetic, talented and knowledgeable people form the core of the team we have at AIB LLC. Through our extensive research, we have seen that the most qualified investment professionals are attracted to efficient investment banks free of bureaucracy.

We have made sure that the most recent research is done to support our portfolio management process. The implementation of our process is maximized by outsourcing almost all functions unrelated to portfolio management and research, allowing full use of the human capital of the bank.

  • Sales and marketing strategy

At AIB LLC, we understand that the key to marketing an investment product is to create a successful and attractive product, develop a model of success, and demonstrate that the model can be repeated in the future. Subsequently, successful products must be actively marketed if the capacity to manage additional assets exists.

If a period of three to five years, compared to the tech world, seems like a century, this is indeed quite reasonable given that private investors in limited liability companies are generally happy with the waiting period. of 10 years that exists before the return of their investments.

AIB’s distinctive investment product will be the AIB Total Market Equity strategy and will initially be offered through a mutual fund registered with the SEC. Advances in technology also allow other economically viable distribution channels, such as separately managed portfolios for large accounts.

Banking business plan advertising and advertising strategy

We understand the importance of creating a good advertising plan that strengthens our brand and helps us stay consistent in the industry, which is why we reached out to advertising experts at Kinks Global to help us create advertising and promotional strategies. that will help us at AIB LLC to attract and maintain our interest. target audience. Below is a list of strategies detailed by Kinks Global for our bank.

  • Advertise on print (community newspapers and magazines) and electronic media platforms; we will also advertise AIB LLC in financial magazines, real estate and other related financial radio and television programs.
  • Introduce AIB LLC by sending cover letters with our business brochure to individuals, households, businesses, schools and gamers. in the real estate sector and to all residents of Alexandria.
  • Promote AIB LLC in leading financial and business magazines, newspapers, TV and radio stations.
  • Place AIB LLC on the yellow ad pages (local directories)
  • Attend major international and local real estate, finance and business exhibitions, seminars and trade shows, and more.
  • Encourage word of mouth marketing from loyal and satisfied customers
  • Sponsor relevant community events / programs
  • Use a variety of online platforms to promote your business to make it easier for Internet users to access our website with one click. We will use the Internet and social media such as; Instagram, Facebook, Twitter, YouTube, Google +, etc. To promote our brand
  • Place our billboards in strategic locations
  • Share our promotional posters and materials in targeted areas of Portland

Source of income

We believe that the main income of AIB LLC will come from investment packages, underwriting and advisory services related to mergers and acquisitions. AIB LLC will earn large commissions on the stocks and debt securities it signs and then resells to the general public.

We also believe that we will focus on the middle market debt that trades best. This will create minimal risk to our capital reserve.

We will also receive substantial fees for watch management and M&A advisory operations. We also plan to invest directly in marketable securities and hedge funds specializing in certain trading areas.

We intend to develop a range of trading strategies including options trading, LEAP trading, long / short trading and other trading methods that will generate low but steady returns on a weekly basis and monthly. We plan to adopt a covered buy strategy that will allow the fund to provide return on investment in securities held for a long time.

  • Sales forecasts

At AIB LLC, we plan to transfer approximately 1/3 of our portfolio each year. We firmly believe that this corresponds to an average term of three years. As a general rule, we want all holdings to be long term investments, so we will identify stocks that we will be suitable to work with if we have been stuck for three years.

It forces us to look beyond the short-term buzz of quarterly results and focus on the big picture, like our management’s vision for the future and the likelihood that they will deliver on their plan.

  • Our pricing strategy

Companies in this sector receive funds from investors interested in investing and charge them a fee to help them invest their funds over a period of time agreed to by both parties. Although investment banking is a very risky business, it remains profitable, which is why there is an agreement between the investment bank and the client regarding the commission they expect to receive from the transaction.

At AIB LLC, we plan to charge a percentage fee as well as a fixed consulting / administration fee. We believe that in the years to come and as we progress, we will be able to decide to improvise or adopt any business process and structure that will guarantee us good returns on investment (ROI), efficiency and flexibility.

  • payment methods

We plan to ensure that we provide our clients with a wide variety of payment options for our services. We understand the different platforms that people prefer and plan to provide a suitable platform that will suit everyone equally. Below are the payment methods we will provide to AIB LLC.

  • Payment by bank transfer
  • Internet bank transfer payment
  • Payment by check
  • Payment by bank check

Financial forecasts and calculation of the bank’s business plan

We noted that banks would need to raise initial capital from investors after the completion of regulatory processes before they can open. In the sector, all insured banks must comply with the capital adequacy requirements of their main federal regulator. The guidelines require a bank to demonstrate that it will have sufficient capital to support its risk profile, operations and future growth, even in the event of unforeseen losses.

We believe that additional criteria generally apply to newly established banks and remain in effect until the bank is well organized and profitable. At AIB LLC, we expect a minimum effective capital of $ 15-25 million.

The successful acquisition of capital of these amounts is usually the result of a well-formulated and executed plan to develop local and other investors in the bank. We have analyzed our needs and plan to use the start-up funds wisely. Below is a detailed financial projection and start-up cost of AIB LLC;

  • The cost to register a business in the United States of America is $ 750.
  • Our basic insurance budget covers costs, permits and business license – $ 200,000
  • Acquisition of appropriate office space across from City Hall in Delta Portland State (including renovation) – US $ 75,000.
  • Capitalization budget (working capital); – US $ 30 million.
  • Budget for the settlement of other legal procedures (acquisition of a business license and all city fees, etc.), 2,500 US dollars.
  • Equip the office with the appropriate standard equipment (computers, software applications, printers, fax machines, furniture, telephones, filing cabinets, security gadgets and electronics, etc.) – $ 10,000
  • Purchase of required application software (CRM software, accounting and bookkeeping software, and payroll software, etc.) – US $ 10,500.
  • AIB LLC Official Website Launch – $ 600.
  • Our 3 months employee salary plus utility bills – $ 36,000
  • Other additional expenses (business with ards, signage, announcements and promotions, etc.) – 4000 USD.
  • Miscellaneous: $ 10,000

… Based on the detailed cost analysis above, we will need $ 349,350 and $ 30 million in working capital to successfully establish an AIB LLC.

  • Creation of start-up capital for AIB LLC

AIB LLC is a licensed and registered investment bank capitalized by five major investors, Mr. Solomon Drane, Ms. Agnes Church, Dr. Mel Stanford, Mr. Kelvin Kruff and Professor John Thomas. Our founders plan to become the company’s very first financiers, although we do plan to sell stocks and shares as the business grows. Due to the lesser funding constraints, we have described several ways to recognize funding. These methods may include:

  • generate part of the start-up capital of the top five investors
  • agree with angel investors
  • apply for a business loan from the Federal Reserve Bank (if necessary)

Note: AIB LLC was able to raise $ 15 million from its top five investors, who separately built and allocated $ 3 million each. We have also agreed with angel investors to invest $ 20 million in AIB LLC, in the hope of making a profit and building a strong business.

GROWTH IN BANKING ACTIVITIES: Sustainable development and expansion strategy

Our main goal for the first full quarter of operations (February-May 2021) is to secure external funding. Previously, our management team at AIB LLC had a budget of $ 300,000 which will be used to find investors, create a legal LLC, and register the bank and its products with the SEC. The amount requested from investors will be around $ 20 million, which should bring the company to profitability by the end of the third year.

At AIB LLC, we believe that breakeven point is roughly equal to an asset in the management level of around $ 130 million.

It is also important to note that the excess cash will be redeployed across the business as soon as income sustainability levels have been reached. Our primary focus for this type of reinvestment will be purely a second stage marketing plan to increase distribution.

We also believe that a rating deserves attention because it relates to our bank’s statement of cash flows. Keep in mind that an interesting feature of the investing industry is that the collection of payments (i.e. income) is very specific, as fees are often collected directly from clients’ accounts ( or to a mutual fund). This is another reason why income confidence is very high and is directly related to the number of assets under management.

Also be aware that it is common in the investment industry to invoice quarterly. For example, our annual commission of 1% will be applied to our accounts receivable five times a year at 0.20%. At AIB LLC, we can convincingly demonstrate that the economic motivation is great. Growth in the investment sector is expected to range from 25% to 24% in each of the next three years.

We believe that the demographic, economic, political and social data supporting these projections make this sector one of the most attractive industries due to the high degree of certainty in the estimates. At AIB LLC, we believe that certainty, combined with the above average growth rate, sets this opportunity apart from other venture capital investments.

Also, keep in mind that our conservative estimates set a return plan over a much shorter period of time than conventional venture capital investments, which sometimes take up to ten years to make a profit.

Checklist / checklist

  • Company name availability check: complete
  • Business registration: complete
  • Opening of corporate bank accounts: complete
  • Opening of online payment platforms: completed
  • Request for tax identification and receipt: in progress
  • Business license and permit application: Completed
  • Purchasing business insurance: complete
  • Feasibility studies: completed
  • Rental, renovation and equipment of our establishment: Completed
  • Receive part of the start-up capital from the founder: done
  • Loan requests from our bankers: in progress
  • Drafting of the business plan: completed
  • Compilation of employee handbook: complete
  • Drafting of contractual documentation: in development
  • Company logo development: complete
  • Advertising material printing: finished
  • Recruitment of employees: in progress
  • Acquisition of software applications, furniture, office equipment, electronics and facial repair products: in progress
  • Creation of an official website for the company: in progress
  • Strengthening the reputation of companies (Business PR): in progress
  • Organization for labor protection and fire safety: ongoing
  • Establishment of business relationships with banks, credit institutions, suppliers and major industry players: ongoing
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