Chapter I

INTRODUCTION

The Philippine banking industry has always played a substantial role in sustaining the pace

of growth of the country’s economy. The entire banking sector is supervised by the Central bank

of the Philippines, Bangko Sentral ng Pilipinas, while the overall industry is segmented and

variegated as under:

40 Commercial and Universal banks together hold around 90% of the total market share of

banking industry in the Philippines. These banks claim a lion’s share of the total deposits available

to whole banking industry. Their area of services ranges from wholesale, retail and corporate

banking to treasury, trade, underwriting and investment advisory. Some top commercial and

universal banks (on the basis of available assets) in the Philippines are: Metropolitan Bank and

Trust, Land Bank of the Philippines, Banco de Oro Unibank, Philippine National Bank and Bank

of the Philippine Islands.

There are 495 Rural and Co-operative banks in the Philippines which are responsible for

development of rural areas and their economies by providing basic financial services to rural

populace. The major difference between rural and co-operative banks is the nature of their

ownership. Rural banks are owned by the private individuals while co-operative banks are under

the ownership of co-operative societies.

Private development banks, Savings and mortgage banks, Loan associations, stock savings and

microfinance saving banks. Their major activities include collection of deposits from small savers

and investing them into profitable portfolios. These banks are also engaged in providing trade

services to small and medium-sized enterprises and individual entrepreneurs.

Emerging business segments in banking industry include:

A form of partnership or association between a financial institution and an insurance

company; where banks offer insurance products through their platform to their customers. In recent

years, the Bangko Sentral ng Pilipinas has received numerous applications both from local and

foreign banks seeking approval for provision of Bancassurance services through their platforms.

Mobile banking or Branchless banking is a relatively new form of service where banks or financial

institutions allow their customers to conduct financial transactions through their mobile devices.

Mobile banking can be carried out in collaboration with telecom industry and is far away from the

traditional brick-and-mortar banking structure. Wealth management services and Retail

investment advisory is provided to young or new investors showing interest in mutual fund units

and other such financial products. Microfinance is one of the fastest growing business not only in

the Philippines but is also attracting the whole world’s admiration. As per the latest report of the

Central bank, there are more than 200 microfinance institutions working in the country, that has

lent around $250 million to 1 million borrowers.

Most bank lending workflows involve various methods of assessing creditworthiness of

potential corporate borrowers. The CreditBPO Rating Report® is a fintech tool designed to
automate banks’ pre-clearance of prospective business borrowers at credit initiation. It enables

banks and business borrowers to bridge the credit gap toward national development and growth.

Background of the Study

BDO is a full-service universal bank in the Philippines. It provides a complete array of

industry-leading products and services including Lending (corporate and consumer), Deposit-

taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards, Corporate Cash

Management and Remittances in the Philippines. Through its local subsidiaries, the Bank offers

Investment Banking, Private Banking, Leasing and Finance, Rural Banking, Life Insurance,

Insurance Brokerage and Stock Brokerage services.

BDO’s institutional strengths and value-added products and services hold the key to its

successful business relationships with customers. On the front line, its branches remain at the

forefront of setting high standards as a sales and service-oriented, customer focused force. BDO

has the largest distribution network with over 1,200 operating branches and more than 4,000 ATMs

nationwide.

Through selective acquisitions and organic growth, BDO has positioned itself for increased

balance sheet strength and continuing expansion into new markets. As of 30 June 2018, BDO is

the country’s largest bank in terms of consolidated resources, customer loans, deposits, assets

under management and capital, as well as branch and ATM network nationwide.
 BDO is a member of the SM Group, one of the country’s largest and most successful

conglomerates with businesses spanning retail, mall operations, property development (residential,

commercial, resorts/hotel), and financial services. Although part of a conglomerate, BDO’s day-

to-day operations are handled by a team of professional managers and bank officers. Further, the

Bank has one of the industry’s strongest Board of Directors composed of professionals with

extensive experience in various fields that include banking, accounting, finance, law, bank

regulations and risk management, strategy formulation and merchandise marketing.

Originally located at Salazar St. Tacloban City, Equitable PCI – Bank was acquired by

BDO on 2006. During the year of acquisition, the former name of the bank was changed to BDO.

And year 2007, the bank was transferred to its now main office at Justice Romualdez St

Tacloban City.
 HUMAN RESOURCE MANAGEMENT

The former Equitable PCI – Bank is now a branch of BDO. The researchers went to the

said bank and conducted an interview to the branch manager about the Human Resource

Management and the strategies. BDO – Justice Romualdez has five departments, the Marketing

Department focuses on account opening, account solicitation and cross selling of bank products

and safe keeping of accounts document. General Services Department cater bills payment such as

credit card payment, utilities payment and fees/payment services. Accounting Department does

check and balance of the bank’s day-to-day operation. Operations Department insures that the bank

is compliant to all policies and procedures. and High Counter Department serves for deposits and

withdrawal and also cross selling of bank products.

Mr. Dennis stated that when it comes to Human Resource Management it has a low rate of

attrition. When it comes to man power compliment they continuously accept application for easy

sourcing out of application. In case there is a need of additional man power.