STI COLLEGE CALOOCAN

A COMPANY ASSESSMENT FOR

BDO UNIBANK, INC.

IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE SUBJECT

BUSINESS OPERATIONS PRACTICUM

Submitted to
Mrs. Geliata Colon

OJT Coordinator

SUBMITTED BY:

Marian Jane V. Obag

 COMPANY ASSESSMENT OF BDO UNIBANK, INC. HEAD OFFICE

I. BACKGROUND

Company mission and vision

Mission

To provide exceptional, quality service to our clients and an environment where our people can

pursue a challenging, fulfilling and rewarding career.

Vision

To be the firm of choice for clients and top-quality professionals.  

HISTORY

BDO Unibank, Inc., located at 7899 Makati Avenue, Makati City, began operations on January 2,

1968, as a savings bank named Acme Savings Bank. The head office is the center of all

transactions for all banks. Insurance, investments etc. from various branches of BDO banks in the

Philippines. These include private banks, rural banks, and others.

With two branches in Metro Manila, Acme was one of the smallest banks in the Philippines at the

time. In November 1976 Acme was acquired by the Sy Group, the group of companies now owned

by retail magnate Henry Sy and renamed Gold Savings and Mortgage. Bank. To bring the bank's

new status up to date, BDO was renamed Banco de Oro Commercial Bank and in September 1996

BDO became a universal bank, resulting in the bank's name changing to the current Banco de Oro
Universal Bank (BDO Unibank, Inc.) has been changed. It is one of many banks owned by a

Chinese Filipino in the Philippines (others include Metrobank and China bank). BDO Unibank,

Inc. finally got into insurance services (it is a bancassurance firm) in 1997 by forming a subsidiary

called BDO Insurance Corredores. In 1999, BDO Unibank, Inc. expanded its insurance services

through partnerships with Zamora Assurance and Assicurazoni Generali spa, one of the world's

largest insurance companies, and Jerneh Asia Berhad, a member of Malaysia's Kuok Group.

BDO Unibank, Inc. subsequently merged in March 2000 with its insurance subsidiaries Generali

Pilipinas Life Assurance Company and Generali Pilipinas Insurance Company SM Group in 1976.

BDO listed its shares on the Philippine Stock Exchange on May 21, 2002.The company merged

with Equitable PCI Bank in May 2007. credit (corporate, commercial, consumer and SME);

treasury; Trust; credit cards; management of the company's treasury; and transfers. Through its

subsidiaries, the company offers leasing and financing; investment banking; private banking;

bancassurance; brokerage of insurance; and stock brokerage services.

NATURE OF BUSINESS

BDO Unibank, Inc. is engaged in the provision of commercial banking services. It operates through

the following segments: Commercial Banking; investment banking; private banking; leasing and

financing; For sure; and other. The Commercial Banking segment deals with all credit, commercial

financing, and cash management services for corporate and retail customers. In addition to classic

loan and deposit products, the Investment Banking segment offers services for corporate

customers. Investment and structured products for wealthy private individuals and institutional

clients. The Leasing and Financing segment includes outright leases, sale-leaseback agreements

and real estate leases. The Insurance segment includes insurance brokerage and life insurance
business by providing protection, education, savings, retirement, and estate planning solutions to

individual and corporate customers through life insurance products and services. The Other

segment focuses on wealth management, real estate management, remittance, accounting, credit

card service and IT service. The company was incorporated on August 16, 1967, and is

headquartered in Makati, Philippines.

II. Statement of the Problem

a. What are the impacts of COVID-19 pandemic to the stakeholders of your chosen

company: employees, customers, society?

a.1. Employees

BDO employees were afraid of contracting the virus, but they must be brave and face their work

every day to serve customers because the situation did not freeze the bank's operations. They also

had difficulty getting to their place of work. since there were limited commercial vehicles.

Employees who are unable to work for health or physical reasons can take vacation. Do not work

from home, as company work is confidential and cannot be carried out outside the bank's premises.

They became aware of their health safety.

a.2. Customers

customers come and go in the various divisions. Although they fear the virus, the need to go to the

bank to withdraw money cannot be ignored. Like employees, customers have had difficulty getting

to the bank or ATM due to the limited transportation options. Some customers also find it difficult

to withdraw their money from ATMs because of the face protection.

a.3. Society

The pandemic triggered fear in society. Healthy security became an issue for the whole country.

The way people go about their daily lives is changing and they are becoming more health

conscious. The meeting is limited. Trust to receive money to support yourself, send money, get

insurance, or get credit to sustain yourself during this time of crisis. Frontline workers enjoy the

trust of people in society, and bank employees are one of them. Some are sending money to

relatives through bank accounts as travel is restricted as introduced by the government to

contaminate the spread of the virus.

b. Based on your research, what courses of action did your chosen company implement to

mitigate the effects of the pandemic? Are these efforts enough?

Throughout the pandemic, banks have played an important role in addressing the issues people are

facing. Bank employees are on the front lines as financial institutions are among the business

operations needing to operate amid the pandemic. It is important to BDO Unibank Inc. that their

stakeholders continue to stay safe and healthy despite the threat of the virus that lurks around them.

The employees of BDO Unibank Inc bravely face their work in the field. Since they work with

payments, most of the work is done in the office. The company makes sure that the employees are

equipped to serve the customers. They are equipped with the correct safety equipment such as

masks and face shields. Facilities will also be disinfected to ensure there are no viruses lurking

around you. Who are physically unable to work take their vacation.

The head office does not deal directly with customers. The company continues to offer its
customers its service through offices across the country. Financial transactions are still available

despite the virus threat. Customers can use ATMs or have online banking. Services will continue

c. How do you think your chosen company can rise above the challenges brought by

COVID-19 Outbreak?

The company had been continuously serving people and customers throughout the pandemic.

Financial institutions have not been greatly affected by the pandemic. The company's operations

have been restricted for some time. The transactions they process are limited and fewer than the

normal number. of transactions. However, some transactions can be done online on their website or

through mobile banking apps. I think they can overcome this challenge by upgrading their mobile

banking systems. Transactions with ticket numbers can be added to the app. This ticket number is

used for faster transaction processes in the commercial establishment. The applications provided

are intended to ensure that no crashes or errors occur. Another measure is to have a new account

type where the initial deposit and maintenance balance are lower. This will attract more new

customers to open an account with the bank. They must also address any customer issues related to

their accounts and money that have not yet been resolved. to gain the Trust and credibility so

customers trust you more and recommend you to other potential customers

III. External Environment (PESTE)

Political

In 2017, the Philippines was among the three fastest growing countries in the region. Only Vietnam

and China fared better. In 2020, the Asian Development Bank (ADB) approved a US$300 million

policy-based loan to support the Philippine government's efforts to drive inclusive growth. by
implementing reforms to expand Filipinos' access to financial services, particularly in underserved

and underserved areas across the country. Today, the current Philippine government launched

reforms to improve the country's financial inclusion. Duterte is an administrator promoting more

reforms to revitalize the economy with the goal of expanding financial inclusion.

Financial inclusion is a way of offering banking and financial services to people. Their goal is to

include all people in society by providing them with basic financial services regardless of their

income or savings. It focuses on providing financial solutions to the poor.

BDO Unibank can seize the opportunity for greater financial inclusion in the country as it

optimizes the delivery of banking and financial services to the people.

Economic

The coronavirus pandemic has had a negative impact on the country's economy and banking sector.

The lockdown to prevent the spread of Covid19 has halted economic activity across many sectors,

with a significant impact on businesses and households. Companies that rely on direct contact with

customers, such as Hospitality and transportation, lose revenue streams; and households working in

these sectors lose labor income.

The banking sector is also affected, albeit mostly indirectly. Although banking services can be

provided remotely and do not rely on direct contact with the customer, the sector's connection with

the real sector as a provider of payment, savings, credit, and risk management services amplifies

the negative impact of the Covid19 crisis on banks and banks from other financial institutions.

Companies that have ceased operations are losing revenue and as a result may not be able to repay

loans. In addition, households with members who have lost their jobs or are furloughed have lower
incomes and therefore may not be able to repay their loans. This not only results in lost revenue,

but also in losses that negatively impact profits and bank capital.

BDO Unibank is negatively affected by this economic factor as part of its income comes from

loans and interest it receives from its customers who may not be able to pay as much as before.

While the banking sector will be negatively impacted by the pandemic, it is also critical to the

economic recovery. But the crisis will increase the competitive pressure on banks by accelerating

trends towards digitization and new financial service providers. That increases competition.

to be provided over the phone and online. To fill out a contact tracing form, it is required to wear

protective equipment, check the temperature, and disinfect before entering the facility.

The continuous services provided by the banks have been of great help to the community. Money

is still in circulation. The company continues to provide quality service to the community and help

the economy despite the pandemic. I find BDO Unibank's approach commendable. They

continuously provide quality service to people. People can still withdraw money when they need it

despite the pandemic. Insurance is still being processed. The attention they give to prospects is

good. They show that everyone is important to the company, which builds a good relationship with

them and adds credit to your company. It’s good for your company's integrity and brand. You gain

more trust not only from employees but also from customers and the community.

Social

The pandemic led to a lifestyle change in society. This includes the increasing dependence of

people on digital trends. The industry is experiencing a sustained and aggressive focus on

digitization and the adoption of new and emerging technologies to achieve operational efficiencies
and accelerate time to market. and deliver superior customer experiences.

BDO Unibank is affected by this competitive development. Many banks want to take advantage of

digital opportunities. This factor increases competition and BDO Unibank needs to be competitive

in terms of its digital adaptations and innovations. This will help BDO Unibank not to be left

behind by the competition from other banking sectors.

Technological

Technology has long impacted the banking industry like the use of ATMs. Technology has

enhanced competition, innovation, and profitability in the banking sector. Nowadays, technological

innovation is very important in the banking sector as it can be used to improve profitability and

provide a new competitive advantage. Innovation is also relevant for customers as it can be used as

a tool to facilitate, speed up and simplify the different types of banking transactions.

Forward-thinking financial services companies are looking to new technologies to improve the

efficiency and speed of service and provide a better customer experience. The exponential growth

of information technology has led companies to take advantage of the digitization of banking

technology to transform the financial services industry through experience management.

The financial services industry is striving to improve online customer service thanks to competition

from consumer brands like Amazon, Facebook and Google. Importantly, most financial services

executives see improving the customer experience as the key driver of digitization in banking.

BDO Unibank is able to leverage today's technological factors by increasing business automation

and customer preferences for accessing transactions via email, automated and manned responses to

their emails and online money transfer application.

Environmental
Credit and reputational risks are emerging as environmental factors affecting the banking sector.

This factor has a potentially negative impact. Credit risk can arise indirectly when banks lend to

customers whose businesses are adversely affected by pollution clean-up costs or changes in

environmental regulations. For example, the cost of meeting new emissions standards can be

enough to put some companies out of business.

Banks can also be directly affected if they find that the value of property they have taken as

collateral is affected by contamination. Reputational risk can also arise in the absence of lender

liability, particularly where banks are associated with major projects that are perceived to be

harmful to society or the environment, such as Dam projects.

The growth of globalized protest movements and the use of the Internet to disseminate information

have greatly increased the risk of individual companies becoming the target of concerted

campaigns of public criticism. BDO Unibank can seize this opportunity to improve its reputation

through sustainable activities, but more importantly, BDO Unibank can seize the opportunity to

undertake sustainable projects to avoid negative impacts such as credit and reputation risks.

IV. Analysis of Strategic Factors

The SWOT Analysis for BDO Unibank

STRENGTHS WEAKNESSES

• Largest Bank in the • Limited branches in the

Philippines rural area

• Has an effective communication • Limited international

strategy branches

• Has a widespread operation, • Its online platform is still

even in international inconsistent

• markets

• Market advantage

• Customer loyalty

• Competent management

• Diverse and innovative services

• Extensive banking hours

OPPORTUNITIES THREATS

• Expansion to foreign markets • Due to the pandemic the economy of

Philippines will decline in the

• Merge with other banks
upcoming years leading to a financial
 The create bill 2021 which reduced crisis.

tax percentage to • Cyber fraud is on the rise in

favor growth of companies
Philippines

• Focused on local level to

• Foreign online banks can offer higher
strengthen the market
benefits in comparison to brick and

• Strong balance sheet can enable mortar banks.

them to grow and expand their • Bank switching due to hidden

company
defection

• Possibility of crumbling relationship

for security and relationship between

managers and customers

•
V. Strategic Alternatives

Growth Strategies

It recommended that BDO Unibank, Inc. must invest heavily in technology,

particularly around cloud computing, big data and analytics, agile development

methodologies and cybersecurity.

Advantages

a) Improved corporate credentials as a result of appropriate security policies being

implemented, which may boost company reputations

b) Prevent unauthorized network and data access and speed up recovery times in the event

of a breach.

c) Improved information security and business continuity management, which increased

stakeholder confidence in their clients' information security arrangements.

Disadvantages

a) Cybersecurity requires constant monitoring.

b) It may be difficult to set up.

c) Expense of setting up the whole system are the big barrier for the highly cost

involved

Stability Strategies

Bdo Unibank, Inc. should use the no change stability strategy, informing their

clients that no changes were made to their terms and conditions as a response of the

cybercrime event. Clearly define, the decision to not do anything new and to

persevere with the existing business operations and practices for which they will
 reimburse their clients' losses.

Advantages

a) Innocent victims will be compensated for their losses.

b) It will demonstrate to the public the professionalism of their company in resolving

issues to gain clients' trust.

(c) The goal of this strategy is to help a BDO meet its goals and objectives without

changing its plan.

Disadvantages

a) Even if they reimburse their affected clients' losses, their clients may close their

accounts and switch to another securing bank firm.

b) Even if BDO Unibank, Inc. was not fully liable for the fraud incident, it may have an

impact on their financial statements as compensation for client losses.

c) They already have a bad reputation as a result of the cyber fraud problem.

Retrenchment Strategies

It recommended that BDO Unibank, Inc. must eliminate obsolete technology

to increase operational efficiency, particularly in the system maintenance of their

various services.

Advantage

a) It has the potential to increase their customer loyalty.

b) By investing more in technology, BDO Unibank, Inc. capitalizes on its strength by

providing new and improved services.

 c) Improved technology means safer transactions.

Disadvantages

a) Technological trends do not easily sway the banking industry.

b) Bank usage of bank branches, ATMs, and even online banking continues to decline.

c) There is still a hidden defect.

VI. Recommendation

Upon looking thoroughly into given data, it is best that the BDO must focus on

its growth by investing heavily in its technology particularly in cloud computing to

provide smoother transaction towards its customer especially in this challenging

times. BDO must also strive to work hard to provide smoother transaction towards its

customer especially in this challenging times. BDO must also strive to work hard to

improve its cybersecurity so that the data breach that happened recently won’t happen

again. This pandemic has made this vital enhancement towards online banking to

reduce the need for physical transaction, being ideal for its customer and staff.

Moreover, with the online transaction taking place, BDO must improve the

corporate credentials and set new security policies to boost the company`s reputation

again and to persuade its customers that they will continue to work harder to provide

smooth and quality transaction through online.

With the recommendation of fully digitalizing its transaction with its customer,

it should improve its efficiency, enrich the customers experience 1and reduce the cost
 in the long run.

VII. Management learned lesson

When COVID-19 arrived one of the biggest worst crises that happened in different countries,

many employees were affected, and lot of businesses have been closed due to COVID-19

pandemic. BDO employees were afraid of contracting the virus, but they must be brave and

face their work every day to serve customers because the situation did not freeze the bank's

operations. Some are sending money to relatives through bank accounts as travel is restricted

as introduced by the government to contaminate the spread of the virus. Do work from home,

as company work is confidential and cannot be carried out outside the bank's premises. Like

employees, customers have had difficulty getting to the bank or ATM due to the limited

transportation options. Although they fear the virus, the need to go to the bank to withdraw

money cannot be ignored. Trust to receive money to support yourself, send money, get

insurance, or get credit to sustain yourself during this time of crisis. BDO unibank need to be

resourceful, outsource smartly, and automate or also have contingency plan, backup plan and

fallback plan this kind of plans ensures the safeties and support of the company to the

employee and the customers, if there’s a risk might come, and it can overcome the situation

that brought by the crisis.