Company Research (PS Bank)

Research Analysis

Submitted By:

Submitted To:

Dr. Rolly Mendoza

Organization Development and Leadership

Master in Business Administration

CHAPTER 1

EXECUTIVE SUMMARY
The study tackles about the security bank organization problem and what
Organizational development plan to be applied to be able to solve the problem.

This include analyzing the strength, weaknesses, opportunities and threats of the
Security bank.

The study also identify the innovation that is doing to reach bank’s certain vision and
achieve a higher profit. The Bank continues to offer innovative banking products and
services that make banking easier, faster and more convenient to its customers.
It's consumer loans offer affordable rates, flexible payment terms and quick credit
decision. Car buyers can get a credit decision from their PSBank Auto Loan application
in as fast as 24 hours via SMS. PSBank Home Loan applicants can get their credit
decision in 5 days or less, also via SMS. The PSBank Flexi is a collateral-free personal
loan that offers a revolving credit line or a term loan that can be used by clients for their
child’s education, minor home or car repairs, travel, cashless shopping, bills payment,
special occasions, and sudden expenses.

All of these, including the PSBank SME Term Loan, are now enhanced with Prime
Rebate which gives savings or rebates for advance or excess payments. No other bank
gives this benefit so customers get more value out of their hard-earned money

The study tried to know the rules and regulation being applied to the employees,
management and customers and if it is being followed regularly. And if there are
conflicts how it is being solved.

CHAPTER II

COMPANY BACKGROUND

PSBank has gone a long way from its humble beginnings as a neighborhood bank since
it first opened its doors to its clients on September 26, 1960. Its head office was located
at Plaza Miranda, Quiapo, Manila, then the heart of the country’s commercial and
business district, while its first four branches were in Divisoria, Carriedo, Blumentritt and
C. M. Recto.

At that time, PSBank blazed a trail in innovative banking which was quite unheard of in
those simple and laidback days. It was the very first bank that offered Monday to
Saturday banking with no noon break, extended banking hours, online electronic data
system, and banking-by-mail. PSBank was also well-known as “The Friendly Bank”
because of its accessibility, convenience and service quality. It seemed that, even then,
PSBank was already ahead of its time.

In 1981, the Metropolitan Bank and Trust Company, the country’s largest bank,
acquired majority shares of PSBank, thus making it a subsidiary and its consumer and
retail banking arm. This fueled the growth and sharpened the focus of PSBank to offer
products and services that championed its clients’ needs.

CORPORATE INFORMATION

In 1991, the Monetary Board of the Bangko Sentral ng Pilipinas authorized the Bank to
perform trust banking functions. Four years later, PSBank was granted a quasi-banking
license, previously granted only to commercial banks and investment houses.

On the same year, PSBank became the first publicly-listed savings bank in the country.
Its first offering of 25% stock rights to the public raised PhP602.4 million while its
second offering the following year yielded PhP526 million. This accounted for 63%
growth in its capital funds.

Despite challenges that came its way through several crises in the local, Asian and
global economies, PSBank – through its prudent management, innovation and
customer-centric focus – consistently delivered. From being dubbed as a friendly bank
in the 1960s, PSBank underscored its primary objective of quality customer service,
simplified processes, quick credit decision and innovative products through its mandate
and promise: Simple Lang, Maaasahan.
As the new millennium started, PSBank slowly yet surely made its steady climb until it
reached its stature as one of the leading savings bank in the country. In 2006, the Bank
again raised PhP2 billion in Tier 2 capital or unsecured subordinated notes. On the
same year, it raised PhP750 million from its rights offer. In 2008, the Bank successfully
raised PhP2 billion in Tier 1 capital through a rights offer, increasing its capital funds by
28% to PhP8.47 billion. This was also the year when PSBank hit the PhP1-billion mark
in its net income, proving that it has what it takes to thrive in the competitive and
crowded banking industry.

PSBank has PhP20.04 billion in capital funds and PhP196.85 billion assets as of end-
2016.

Recently, PSBank was recognized for the 6th consecutive year as the strongest thrift
bank in the country and the 2nd strongest bank in the Philippines by the Asian Banker,
a third party research and intelligence company that provides information on strategic
development in the financial services industry in the Asia Pacific region.

The ranking is based on a financial scorecard that ranks the 500 largest Asian banks
according to their financial and business performance.

This is proof of how PSBank has built a foundation of strength and profitability and a
reputation of simple and reliable banking for more than 50 years of operations.
ORGANIZATIONAL CHART
COMPANY AND EMPLOYEE POLICY
 CHAPTER III

DEFINITION OF THE PROBLEM

Most companies have some key characteristics that make them believe they’re
different: a combination of their business model, mission, product, and other factors. But
when you look inside these companies, quite a bit about them is the same, too:
structure, job titles, common challenges, etc.

Despite the many differences in execution and strategy, most organizational problems
in particular are the same across companies.

Researcher identified some problems:

Turnover

It starts with one of the biggest, most painful organizational problems that can plague a
company: turnover.

When turnover strikes, unfortunately the problem is usually mis-diagnosed. Multiple

studies show that managers falsely attribute employee turnover to either the quality of
the job offer, or claim the employee wasn’t a fit anyways.

Relationships with Customers

Managers set the tone for how their teams treat customers. There is nothing more
powerful than leadership by example.

If they’re careful and diligent, their team will be, too.

If they’re curt and brief, unfortunately, so will their team.

This can be extremely costly. However, many of these costs are hidden from senior
leaders.

 How many bad experiences are happening you don’t know about? A typical
business hears from 4% of it’s dissatisfied customers.
 How much are unhappy customers not spending with you? On average,
loyal customers are worth up to 10 times as much as their first purchase.
  Are poor customer experiences tolerated? News of bad customer service
reaches more than twice as many ears as praise for a good service experience.
Poor communication and feedback.

There seem to be two extremes in this area: Either people do everything in their power
to avoid confronting others and holding them accountable or they relish any opportunity
to chew people out, belittle them, and crush their spirits.

I have worked with countless leadership teams in which the number-one problem was a
lack of honest, constructive, and open dialogue about the team members’ practices,
styles, skills, or behaviors. Without a culture of openness, feedback, and coaching,
organizations will struggle to grow.

Lack of awareness

Building a solid organization takes hard work and a keen awareness of the culture and
environment that exists in a business. Most executives are very busy people; a lot of
things vie for their attention. Market conditions can change fast in a VUCA (velocity,
uncertainty, complexity, and ambiguity) world and demand huge portions of a leader’s
time. We affectionately call this the “task magnet.”

Unfortunately, while they’re busy focusing on their many necessary operational

distractions, many managers take their eye off the teamwork ball. This means that
communication suffers and leaders get preoccupied and fail to recognize people,
celebrate progress, build the talent pipeline, or invest time reviewing processes,
practices, and better ways of working across functions. People then become
disengaged, feel marginalized, and lose focus and commitment.

Business Risk

Over the decades, the financial services industry has undergone significant
transformation due to internal and external factors, including business model
transformation, adoption of advanced technologies, changing regulatory environments,
etc. Modern banking sector is a highly complex ecosystem, where stakeholders of
different backgrounds — internet, tech companies, startups — play an increasingly
influential role.

In an increasingly complex environment of the financial services industry, new

complexities arise, requiring an adjustment in risk management systems and
procedures. For financial institutions, expanding the array of risks that come with new
types of players, new technologies, ever-growing complexities of national and
international regulations, as well as changing consumer behavior, require significant
resource investments to address financial and other risks naturally occurring as a result
of those changes. More than ever, chief risk and compliance officers play a critical role
in monitoring and managing these risks to ensure a safe transformation of banking, and
ensure continuity of their businesses.

In its simplest sense, risk could be defined as the uncertainty of an event to occur in the
future. In the banking context, it’s the exposure to the uncertainty of an outcome, where
exposure could be defined as the position/stake a bank takes in the market.

If history was any indication, banks have borne billions in losses due to imprudent risk-
taking. It is hence vital to understand the different types of risks faced by every bank in
2018 and beyond.

Business risk is the risk arising from a bank’s business strategy in the long term. When
a bank fails to adapt to the changing environment as quickly as their competitors, it
faces the risk of losing market share, getting acquired, or shutting shop.

Technology is changing the banking landscape at an incredibly rapid pace. The

millennial generation would need a drastic change and development in banking
interfaces, which would primarily be led by four clicks on their mobile phones as
opposed to long queues in the bank branches.
Banks need to rethink the outdated framework of the core banking systems, rethink the
design of their end to end tech stack and build upon efficient and quicker bank end
systems to turn around and meet the demand of the largely impatient digital consumer.

We already see progressive banks like BBVA, DBS, make strides in technological
innovation to meet changing consumer demands — whether through strategic
partnerships, acquisitions, or in-house developments. Moreover, the non-financial tech
players like Google, Amazon, Alibaba, Tencent are either aggressively acquiring or
investing in the in-house development of new age technologies to offer certain financial
services to their vast user bases

Business Threats

Researcher tends to know what exactly resides on the networks and how to gain access
to them for the purpose of theft, disclosure, destruction or indeed manipulation. For
example the leaking and disclosure of critical information could lead to the manipulation
of share values. This is a far more effective means of profiting through cybercrime than
traditional fraud techniques.

Some of the risks posed from Insider Threats in the Financial Sector:

Undesired disclosure of confidential customer and account data – jeopardizing an

organizations most valuable relationship

Fraud

Loss of intellectual property

Disruption to critical infrastructure

Monetary loss

Regulatory
Destabilize, disrupt and destroy cyber assets of financial institutions

Embarrassment, Public Relations

Identifying the Insider Threat

Insiders can be current employees, former employees or trusted advisors and partners
(the extended enterprise).

That unhappy employee, or rogue insider will go to any length to gain access to the
organization’s critical information, share the sensitive data they get their hands on and
even put it to some other unscrupulous use such as insider trading.

Whilst malicious employees are the exception rather than the rule, they are not the only
insider threat.

Ignorant users are also perilous. Recent Forrester research has shown that the greatest
volume of security breaches (36%) come from employees inadvertently misusing data.
They unwittingly share sensitive data or information that could fall into the wrong hands
almost daily. Many employees also casually share passwords. Giving their ID as an
apparent necessity or just to make their lives easier, without any idea of why it might
cause a security breach.

SWOT analysis of PS Bank

INTERNAL FORCES STRENGHT WEAKNESSES

STRONG MANAGEMENT - (They have the strong

management because their Policy is good, and many
X
customers loves their services and this is why they are
considered as one of the best bank in the Philippines)
HUMAN RESOURCES. (They have a strong work force that
X
can work for the needs of their customers)

FINANCIAL MANAGEMENT. (They have enough money to

run their business in the long run and can pay thei debts X
through their assets.)

MARKETING MANAGEMENT. (You can see Security Bank

all over the advertising place but you can hear so many
X x
customer compalint about their after service so this can be
the weakness of SECB.)

RESEARCH AND DEVELOPMENT. (They continue to

innovate and create new products so they can offer more x
services to its client)

MIS. (Since they are working with the most advance

technology in banking industry in order for them to make sure
x
the security of their clients, they need to used the most
advanced system)

EXTERNAL FORCES OPPORTUNITY THREATS

POLITICAL. (This can be an opportunity because the

government are encouraging everyone to save money, and x
many politicians really support financial literacy)

ECONOMIC. (There's a threat if the inflation rate continues

x
to rise because the BSP will increase the interates rates.)

SOCIO CULTURAL. (This can be an opportunity since

X
more Filipinos are becoming more financial literate.)
TECHNOLOGICAL. (SECB should be adopt new
technologies so they can able to give quality services to
X
their customers and give high security for the important
details of their clietns)

Possible Identified Problem

1. Building trust. Financial institutions are slowly chipping away at the trust gap, but
revelations like the Wells Fargo scandals reinforce lingering negative perceptions about
the industry as a whole. They also show how quickly trust can evaporate. It’s worth
noting that customers aren’t the only ones who care about trust. Banks that want to
continue to attract and retain talented, committed employees will need to show them
that they are trustworthy, operate fairly and ethically, and contribute positively to society.

2. Increasing products per household. Financial institutions overall have struggled

with cross-selling, in part because the approach to cross-selling isn’t hitting the mark.
Banks and credit unions need a new mindset of customer cultivation that includes
growing their relationships from simple accounts to loans, investments and business
banking. To do this, they’ll need to move away from selling products to solving
problems, and this requires employees who have a strong commitment to creating
customer value rather than just filling orders and requests.
 Chapter IV

Analysis

Organizational planning involves designing an organization's structure to maximize efficiency.

This includes dividing a company up into different units, departments, and teams. Prior to this
division, managers must consider a company's goals and business obstacles as well as
alternative company structures. Business goals may include, for example, increasing the flow of
information, promoting teamwork, and reducing redundancy. Next, managers must consider the
different organizational structures and select the one that holds the greatest potential for
eliminating problems with the current corporate structure or for bringing about the desired
structural environment.
 Chapter V

Expected result of the approach

Organizational planning should include long-term and short-term planning. The plan should predict
where the organization will be in two or five years, listing specific, measurable goals and results. The
plan should also include a specific "to-do" list that keeps everyone informed of the necessary actions
and resources, as well as listing who is responsible for the all the tasks. It should also include a
reasonable time frame for these tasks to be accomplished. Failure to plan will damage the
effectiveness of the organization and can even lead to complete break-down.

Lack of planning is certain to result in shortages or delays of necessary materials. Without an

analysis of how often resources need to be replenished, these necessities will not be found where
and when needed. The necessary resource might be something as small as staples for the stapler,
or as essential as running out of the raw material needed to manufacture the product that is sold. In
all cases, a business a cannot flourish if the management of its resources is not being monitored and
planned for.
 Chapter VI

Conclusion

Organizational analysis and planning focuses on cultivating and maintaining an efficient

workforce through the design and structure of an organization, as well as the relationships and
behavior of individuals within organizations. Specifically, organizational analysis is concerned
with developing models and theories that accurately capture the functioning and development of
organizations and that account for the ways in which organizations respond to and bring about
changes. Organizational planning, on the other hand, involves designing an organization's
structure and dividing up the responsibilities of an organization. The goals of organizational
analysis and planning typically have been to determine the best way to view and organize a
company in order to manage it successfully and to bring about greater efficiency.

One of the basic techniques of organizational analysis is modeling—developing models of

organizations that delineate the way they function and evolve in order to identify the best way of
managing each one. Modeling enables managers to determine the crucial variables in particular
circumstances so they can experiment with different combinations of variables to achieve their
desired results. For example, managers can determine the best combination of technology and
organizational structure for their company by using organizational models.