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<p align="justify">BB&;T is an American commercial bank originated from North Carolina around 1872 as Branch &; Hadley. It was renamed to Branch Banking and Trust Company in 1913. It became part of Truist Financial Corporation as of December 2019. Trusit Financial is a financial holding company. It was formed by the merger of BB&;T and Suntrust Banks (Ajc, 2019). Truist became the holding company of those two banks all over the US. The combined assist after the merger resulted in it becoming the Sixth Largest traditional bank in the United States (JournalNow, 2019). It provides financial services which include investment banking, insurance, lending services, and traditional financial services. Porter’s five forces model is a useful tool to identify threats and opportunities faced by Truist Financial Corporation in the United States’ financial services sector.</p>
<h2 align="justify">Competitive Rivalry in the Market</h2>
<p align="justify">The financial market in the United States is very competitive. The company faces intense competition locally from regional banks the major threat to Truist Financial Corporation is Capital One Financial &; PNC Financial Services. Both of its competitors are local and hold a strong foothold by having a diversified portfolio in the financial sector. The revenue of Capital One Financial &; PNC Financial Services is $32,377 Million (Fortune, 2019) and $ 19,993. Million (Fortune, 2019) respectively. Taxable equivalent revenue of Truist Financial Corporation $12.7 Billion (Truist, 2019). Insurance and consumer banking are very competitive in this region. Truist has a strong regional foothold on the East coast of the United States. It has a national presence all over the country. It should expand its regional presence all over the United States.</p>
<h2 align="justify">Threat of Substitutes</h2>
<p align="justify">The threat of substitutes in the financial industry has increased due to the internet of things. The technology has swept through all over the industries around the world. The companies outside the financial setup are working on payment options. These companies are affecting the clientele of traditional banks. Fintech startups are popping up everywhere in the world. The big tech companies are venturing into financial sectors. Such as Amazon and Apple with products as Amazon Pay and Apple Pay. The online transfer services such a PayPal and Venmo. These fintech services are a real threat to traditional banks. The companies are using it to increase customer experience and product satisfaction. Truist Financial must invest in fintech to keep its clientele intact.</p>
<h2 align="justify">Threat of new Entrants</h2>
<p align="justify">The financial industry works under a very strict framework developed by regulators all over the world. The reason behind the framework is to protect the economy. The industry is scrutinized by the governments. The adherence to those frameworks is a difficult legal and costly job. The cost of compliance and litigation poses a massive threat to new entrants (Deloitte, 2017). The entry barriers are usually high due to that reason. The startup should come up with better alternative products to win the loyalty of customers. The fintech startup can become the rival of traditional banks in the future. The higher operating traditional bank can be avoided by fintech agencies. They must adhere to the rules and regulations set up by the regulators. It can be a serious problem for startups. The entry barriers at that moment made it difficult for newcomers.</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The financial industry is directly related to the availability of the product in the market. The alternative product in the market makes it easier for the customer to switch. The individual customer can affect the companies like of Truist Financial due to their large clientele. The corporate client and high net worth individual (HNWI) can impact though. The Bargaining Power of Buyer is high if the buyers are large, they are ably to switch easily to another supplier who maybe are in numbers (Slater &; Olson, 2002). Losing a corporate client means the loss of revenue and income. Corporate clients and HNWI hold power while negotiating for the product. Truist Financial has multiple products for the same client. Which makes it difficult for the client to switch even after the availability of the product due to switching cost. The overall bargaining power of buyers is low against Truist Financial.</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The supplier in the banking sector can be divided into two groups, one the depositor and employees. The depositor is the main source of capital as the employee is the resource of labor. The individual depositor doesn&#8217;t hold any power as compared to corporate clients. Corporate clients can bring thousands of depositors and can exert bargaining power. The low-level employee doesn&#8217;t hold any power except for top executives. Truist Financial should provide a better product to the depositor and increase its depositor by providing them attractive deals. The increase in capital brings financial security for the institution. The top executive makes those plans. They must be provided with better financial benefits to keep them on board. These employees can exert there bargaining power in negotiating the contract. The bargaining power of the supplier is moderate in that case.</p>
<h2 align="justify">References</h2>
<p align="left">Ajc. (2019) SunTrust bank merger completed with BB&;T, creating Truist. Available at: https://www.ajc.com/news/breaking-news/suntrust-bank-merger-completed-with-creating-truist/8yBfVTumakPUll1CJ65VJM/<br />
Deloitte. (2017) Cost of Compliance and Regulatory. Available at https://www2.deloitte.com/us/en/pages/regulatory/articles/cost-of-compliance-regulatory-productivity.html<br />
Fortune. (2019) Global 500. Available at: https://fortune.com/fortune500/2019/capital-one-financial/<br />
Fortune. (2019) Global 500. Available at: https://fortune.com/fortune500/2019/pnc-financial-services/<br />
JournalNow. (2019) Combined Truist would have had $6 billion in fiscal 2018 net income, report says. Available at: https://www.journalnow.com/business/combined-truist-would-have-had-billion-in-fiscal-net-income/article_4630c603-30bb-5d74-935e-9fb2b44d88e1.html<br />
Slater, Stanley &; Olson, Eric. (2002). A fresh look at industry and market analysis. Business Horizons. 45. 15-22. 10.1016/S0007-6813(02)80005-2.<br />
Trusit. (2019) Annual report 2019. Available at: <a href="https://reports.truist.com/annual-report-2019/">https://reports.truist.com/annual-report-2019/</a></p>
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