Ateneo de Davao University

E. Jacinto St., Davao City

A 3/5-YEAR STRATEGIC PLAN OF SECURITY BANK

Presented to the Faculty of School of Business and Governance

In Partial Fulfillment of the Requirements for the Subject

MGT 4259 – STRATEGIC MANAGEMENT

Presented to:

Mr. Prince Christian P. Mianagua, MICB, MBA

Presented by:

Althea A. Cachuela

Jennifer Mae G. Dalisay

Derick Gabriel Kisan L. Ferido

 Alyana S. Lim

Jhon Ray G. Rabara

EXECUTIVE SUMMARY
ACKNOWLEDGEMENT
TABLE OF CONTENTS
List of Tables
List of Figures
 I. INTRODUCTION

1.1 Company Background

Security Bank Corporation has a proud history of financial management expertise, with a
proven track record of stability and consistent profitability achieved through an efficient,
perceptive and forward-thinking management style. The Bank stands firm as one of the
Philippines’ top ten private domestic universal banks in terms of assets, deposits, capital and
return on equity.

1.2 Vision, Mission, and Goals & Objectives

Vision

To become the most customer-centric bank in the Philippines.

Mission

We enrich lives, empower businesses, and build communities through financial service
excellence. All of this is reinforced in our renewed commitment to Better Banking

Goals

1) grow all three business pillars of the Bank, namely, wholesale banking, financial
markets and retail banking;

(2) transform the Bank’s infrastructure, processes and culture to support its growth
aspirations and deliver its BetterBanking promise.
a. further improve the Bank’s digital platform to become a strong distribution, sales
and service channel;
b. improve operations processes with digital optimization initiatives

(3) regain industry-leading ROE

Objectives

● To establish, offer and extend financial aid and/or scholarship grants and other
similar academic incentives to indigent but deserving youth.
● To sponsor, promote, support, encourage and finance educational activities and
projects; as well as conduct, find and provide ways and means to give educational
seminars, lectures, conferences, travel grants and exhibitions calculated to attain its
purposes.
● To sponsor or support community livelihood development programs or projects for
urban and rural poor, that will generate a steady flow of income to support their
basic needs.
● To engage active participation of the members of the Security Bank community in
meaningful social development activities.
 II. PROBLEM AND ITS SETTING

2.1 Background of the Study

I. Present Day security bank

Security bank, founded in 1951, was one the first Filipino controlled private banks
in the country. The bank has earned itself a reputation of being a “Universal Bank” which
means that it caters towards not only retail and corporate but also to commercial, and
institutional customers. With the world constantly evolving and trading, smaller nations
like that of the Philippines have also learned to grow and industrialize. This means
internationally the economy and its bankers have steadily grown and Security Bank is no
exception to this as it currently ranks as the 8th largest private domestic universal bank in
the Philippines with total assets valued at 650.8 billion pesos. Despite the current world
health crisis that is currently rocking the nation, Security Bank has found a way to
continue its growth by providing better services and partnerships. Recently, Euromoney, a
Financial magazine based in London named Security Bank as the Philippines’ Best Bank.
As said by Euromoney, “The bank achieved all-time high revenues of P50.4 billion
($1.05 billion), up 48% year on year, translating into pre-provision operating profits of
P30.7 billion, up 85%.”. According to its website, Security bank was also handed an
award by The Asian banker last February 2021 as the Philippines’ Strongest Bank of
2020.

II. Trend of cashless banking and e-banking

- Since the turn of the decade, cashless transactions began to steadily increase, paying
online; using digital wallets and electronic payment through cell phones are now being
seen as more convenient and trendier (LightNet,2018). Internationally digital payments
have been encouraged by applications and websites. Thanks to its versatile design, it has
become more and more conveniently available through online applications such as
Paypal, Propay, Alipay, WeChat Pay, Gcash, and many more. Crime rates internationally
have been at a steady increase, thus people opt out of carrying their cash instead keeping
it safely stored and just using a cashless transaction. Nonetheless, online banking has
made these ever trending transactions more convenient, accessible, and easy to use for
the average person. According to Lightnet (2018), only 2% of Swedish people use cash
through their everyday transactions in 2016. Similarly, it was reported that there was an
increase of 34.6% of cashless transactions in China, 38.5% in Russia and in India
(Durkin, 2020). In the national setting, a survey conducted by MoneyTransfers.com
revealed that 52% of Filipinos are in favor of a cashless society. Presidential
spokesperson Harry Roque has also been a vocal support of this, and has even stated that
Bangko Sentral ng Pilipinas slowly plans to shift to contactless payments by
implementing coinless transactions in the near future (Gita-Carlos,2021).
 - Today, as the impact of the pandemic continues to strike, more practices are changed or
modified to be able to adapt to the new normal. From shopping clothes, footwears,
jewelries online to online grocery shopping, entrepreneurs have already made things
easier and more convenient for the consumers. Everything is widely available and easily
accessed through the internet and can be directly delivered at one’s doorstep. Maykuth
(2020) reports that Covid 19 greatly impacts the increase of cashless society. CoVid 19 in
its forefront has shaped the entire system as everyone knows it. Now with the added risk
of the virus, daily activities such as buying groceries, paying bills and the like are
deadlier than they have ever been. According to the World Health Organization (WHO),
paper bills may contain millions of bacteria and viruses and could accumulate for a long
period of time, and whilst it is possible to sterilize them that solution just cannot be
accessible to the average person. Ultimately it is highly recommended to switch to
contactless payments to lessen virus transmission through physical contacts (Stieg, 2020).

III. Security Bank and its e-banking system

- “BetterBanking at Home”, a trademark slogan usually seen in every poster in every
location of every Security Bank and in their official website. Online banking has been
greatly encouraged by the bank as the current pandemic continues to worsen. Transfer of
funds through InstaPay, bank services, credit card services, credit card activation and
balance inquiry are just a few of the services offered online. The bank has made it easier
for the customers to manage their finances online, they also ensured safety measures to
secure and protect the data and accounts of every user. To ensure safe banking, these are
some of their safety measures that they have implemented: each user must have his/her
own user id with a password, after 10 minutes of inactivity the system automatically logs
off one’s account to minimize the risk of stealing, and there are constant technology
updates to continuously maintain strong security standards. Additionally, email
confirmations, one time passwords (OTP) and SMS notifications for every transaction
made are also added as a security measure. Being one of the largest in the Philippines, it
continuously reminded its clients through text messages and emails to seriously take
safety measures and be vigilant when online banking (Cuaresma, 2021). Specifically in
their website and facebook page, there have been multiple tips on how to spot a potential
scam and advise their clients to report any suspicious activities that are happening
(Caraballo, 2020).

IV. Threats to E-banking

- As online banking continues to evolve and develop, fraudulent activities and hacking
continue to become a serious problem worldwide. Foglino (2013) stated that the hackers
and fraudsters usually implement malware attacks, identity theft, phishing, keylogging,
pharming, and other such methods to gain access to users' accounts and exploit it. They
continue to pretend and fool the masses by impersonating an agent from the bank who is
 offering loans and credit card upgrades. Berger (2021) reiterates that in 2012 there were a
number of Iranian hackers that spent almost a year targeting the users of Bank of
America, Citigroup, and JP Morgan Chase. Banks in the Philippines are no exception to
such fraudulent activities. In fact, Lucas (2016) revealed that a number of foreign hackers
have been targeting to hack Philippine banks. Sources have revealed that since November
2015 up until early 2016s there has been a steady increase in foreign hackers trying to
usurp the system of the local banks. There has been some peace in that ever since the
investigation on the Bangladesh bank scams where 81 million dollars was stolen that
these scams have reportedly died down. Nonetheless locals have experienced an all time
high in phishing emails attempting to gain access to their bank accounts. Banks have
been routinely combating these scams by putting out safety warnings and releasing more
public information to educate people on how to safely secure one’s own bank account.

2.2 Problem Statement

Security Bank is committed to customer service and with a rise in online transactions
done through the bank’s digital platforms, their website and mobile application, the security of
customer’s data is placed under the spotlight. The customer data being collected presently is
becoming more personalized and specific, which can be used for a myriad of crimes which make
use of the data like Identity Fraud, Credit Fraud, and Blackmail. Given that data is given such
importance in today’s world, this research aims to answer the following questions:
1. How vulnerable is Security Bank to system hacking and data leaks?
2. Is customer data safe under the care of Security Bank?
3. Are Security Bank’s Digital Platforms Secure and Up to Date on Encryption
Protocols?
4. What systems are in place to make transactions more convenient but more secure?

2.3 Objectives of the Study

With the shift to online platforms and digital transactions, different types of online
banking scams emerged. Despite the warning of banks to be cautious to avoid being a victim of
fraud, some users are still getting conned. With this, the objectives of the study are as follows:

● To identify the ways on how the Security Bank will reduce cybercrime issues to maintain
the trust of its clients
● To determine the bank's security measures with regards to the protection of its customer's
account, personal information, savings, and money.
 ● To identify ways on how the Security Bank can properly manage fraud complaints.

2.4 Significance of the Study

Discussed in G.R. No. 208672, since their business and industry are imbued with public
interest, banks are required to exercise extraordinary diligence, which is more than that of a
Roman paterfamilias or a good father of a family, in handling their transactions. Worded in
another way, banks and other related financial institutions are legally required to practice
extreme care and caution which very prudent and thoughtful persons exercise under the same or
similar circumstances. This provision is of course applicable not only to the traditional cash
based banking practices but also to the technological and more advanced banking system.

Aforementioned from the previous discussions, as a strategic plan, one of the main
objectives of the study is to identify ways and approaches on how Security Bank can avoid the
risks brought by various cybercrime activities that are deemed detrimental to their eBanking
systems. The study shall devise systematic, practical, and attainable means to suppress and
minimize such risks through extensive internal and external assessment of the facets of the entity.
This is to protect and maximize the wealth of the shareholders, creditors and relevant parties that
are related to the entity.

2.5 Scope and Limitations

This study focuses on the cybercrime security issues of Security Bank Corporation in the
Philippines. This study is limited to Security Bank Corporation in the Philippines and its
customers who primarily use online banking services. The data collected in this study is only
based on the articles regarding Security Bank Corporation issues of cybercrime security in the
Philippines found online as it is prohibited to do a face to face interview with the management
and the customers.
 III. STRATEGIC PLAN FOR SECURITY BANK

3.1 Proposed Mission Statement

​We enrich lives, empower businesses, and build communities through excellent financial service.
Spearheaded by our dedication to improve our digital platform with digital optimization
initiatives for our operations. We aim for a Better Philippines through the active participation of
our employees in our social development activities fostered by our corporate culture and
supported by our promise of industry-leading return on equity in Filipino Banking.

All of this is reinforced in our renewed commitment to Better Banking.

3.2 External Assessment

3.2.1 Porter’s Five Focus Model

3.2.2 Opportunities

3.2.3 Threats

3.2.4 External Factor Evaluation Matrix

3.2.5 Competitive Profile Matrix

3.3 Internal Assessment

3.3.1 Financial Aspect

3.3.2 Strengths

3.3.3 Weaknesses

3.3.4 Internal Factor Evaluation Matrix

3.4 Strategy Formulation and Selection

3.4.1 Strength-Weaknesses-Opportunities-Threats Matrix

3.4.2 Strategic Position

3.4.3 Boston Consulting Group Matrix

3.4.4 Internal-External Matrix

3.4.5 Grand Strategy Matrix

3.4.6 Quantitative Strategic Planning Matrix

3.5 Strategy Implementation

3.5.1 Management and Operations

3.5.2 Marketing,Finance/Accounting, R&D, and MIS

3.5.3 Projected Financial Statement for 20XX-20XX(3-5years)

3.6 Strategy Evaluation

REFERENCES
APPENDICES
 PROPOSED SECURITY BANK MISSION STATEMENT
We enrich lives, empower businesses, (Customers) and build communities (Concern for
Public Image) through financial service excellence.(Products)

All of this is reinforced in our renewed commitment to Better Banking (Self-Concept)

1.Customer - Ok
2. Product/Services - OK
3. Market
4. Technology
5. Concern for survival, growth and profitability
6. Philosophy
7.Self-Concept - OK
8.Concern for public image - OK
9.Concern for Employees

​We enrich lives, empower businesses, (Customers) and build communities

(Concern for Public Image) through excellent financial service. (Products)
Spearheaded by our dedication to improve our digital platform with digital
optimization initiatives for our operations. (Technology) (Concern for Survival)
We aim for a Better Philippines (Market) through the active participation of our
employees (Concern for Employees) in our social development activities
fostered by our corporate culture (Philosophy) and supported by our promise of
industry-leading return on equity in Filipino Banking.
All of this is reinforced in our renewed commitment to Better Banking.
(Self-Concept)