Revenue Process

Bank
fees

SOURCE
Service OF Deposits
charges REVENUE

Loans

Figure 1. BDO’s source of revenue

The customers deposit money at the bank for which they receive a small amount of
interest. Then the BDO lends funds out at a much higher rate, resulting for the company to have
a profit coming from the difference in interest rates.

Interest rate in BDO Credit Card

Card name Membership fee Monthly EIR

Standard Php 125.00 2%

Gold Php 200.00 2%
Titanium Php 4,500.00 2%
Platinum Php 4,500.00 2%
 Credit granting

Evaluating the customer’s credit worthiness is a vital step before granting them a credit.
BDO don’t have a limit on the amount of their customer’s credit as long as it satisfied the needed
requirements and the procedures are done effectively.

If approved,
the client can
avail credit
from the bank.
The submitted
Provide all the forms and
Filling out the
requirements requirements
form.
of the BDO. are subject for
approval.
If not approved,
the client needs
to comply all
the needed
requirements
before availing
the credit.
Figure 2. Credit granting process

In terms of the process of services, the company provide an application form for them to
be able to know the customer’s information that is necessary all throughout the process that is
assisted by the staff to have a constant communication and the flow of transaction will be easy.
BDO uses remote or wireless terminals ideal for delivery service which pertains to its
facility of card acceptance using the point-of-sale wireless technology that is installed at the site.
The billing to customers involves the process of sending invoices on a regular scheduled basis
and the BDO offers all standard payment options that makes it easier for the client to pay. An
accurate and up-to-date records is very important to ensure the preparation of financial
statements will be reliable. The company ensures that the information that is gathered from the
clients are validated, they also identify the revenue streams and keeping track the transactions
happening in the facility.
BDO have an advance recovery strategy that helps them to increase the debt recovery. It
includes the information such as the amounts owed, days late and repayment potential. By such
information, they could identify those client’s debt which are needed to check and notify. The
Company can also recover the bad debt through equity in exchange for writing off a loan that
could later result in a recovery of the loan that will provide an additional revenue.