STI COLLEGE CALOOCAN

A COMPANY ASSESSMENT FOR

BDO UNIBANK, INC. HEAD OFFICE

7899 Makati
Avenue Makati
City

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 • Limited international
communication 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 • Due to the pandemic the economy
markets of Philippines will decline in the
• Merge with other banks upcoming years leading to a
The create bill 2021 which financial crisis.
reduced tax percentage to
favor growth of companies
• Cyber fraud is on the rise in
Philippines
• Focused on local level to
strengthen the market • Foreign online banks can offer
• Strong balance sheet can higher benefits in comparison to
enable them to grow and brick and mortar banks.
expand their company • Bank switching due to hidden
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 the 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 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 and reduce the cost in the
long run.