Name of Student EARL LOUIE M.

MASACAYAN
Course DBA 724 – Enterprise Analysis
Professor Dr. Luz Banes
Date Submitted 06 February 2021

ENTERPRISE ANALYSIS FINAL PAPER

UNITED COCONUT PLANTERS BANK
Input-Task-Output

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INPUT:
Assumptions and Constraints
The focus of this analysis the transition of the bank from private operations to government
integrating the new normal. The limitation shall be the focus on procurement due to author’s
assignment as a procurement lawyer of the bank.

Business Goals and Objectives

I. Vision

To be the bank of choice of the middle and consumer markets by providing personal and

proactive service and innovative products.

II. Mission

• We will continue to provide personal and proactive service that effectively responds to

the diverse and dynamic needs of our clients.

• We will continually enhance the customer experience

• We will continue to provide relevant, innovative and value-adding products and services.

• We will maintain and promote a culture of professionalism, integrity and excellence, and

social responsibility among our employees.

• We will consistently produce superior financial returns for our stakeholders.

David’s Framework on Vision and Mission

CRITERIA PRESENT OR NOT DESCRIPTION

Customer Present Middle and consumer markets is

stated in the vision statement. Also,
the mission also provides for
“continually enhance the customer
experience”
Products and Services Present Vision states “providing personal
and proactive service and
innovative products” while the
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 mission states “provide relevant,
innovative and value-adding
products and services”.
Markets Present The Vision clearly states that “To be
the bank of choice of the middle and
consumer markets”
Technology Present The word “innovation” is found in
the Mission statement.
Concern for Survival, Present The Mission provides that “We will
Growth, and consistently produce superior
Profitability financial returns for our
stakeholders”
Philosophy Provides The Mission provides for “relevant,
innovative and value-adding” also
“promote a culture of
professionalism, integrity and
excellence, and social responsibility
among our employees”
Self-Concept Present The Vision and Mission emphasizes
the concept of innovation of the
products and also relevant and
value added products.
Concern for Public Present The maintenance and promotion a
Image culture of professionalism, integrity
and excellence, and social
responsibility is highly emphasized
in the mission statement
Concern for Employees Present Concern for employees is
manifested on training them to be
professional, person with integrity,
excellent, and socially responsible

Enterprise Architecture

Information Technology is the heart of the banking business since all of its processes are dependent
on IT. During the pandemic, there were various IT emergency procurement projects because the
bank will crush without those important IT systems are in place. The Banko Sentral ng Pilipinas as
mandated banks to have separate unit for Information Security for checks and balance. Banking
business is inherently complex due to it voluminous products and services which are imbued with
public interest.

Multitude of channels: physical branches, ATMs, contact centers and internet banking have been
around for a while, but the rise of mobile and even more recently the rise of Open Banking APIs and
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the customer's expectations for cross-channel continuation are new.

Real-time interactions: these types of interactions result in a considerably more complex

architecture than the traditional batch-oriented systems.

24/7 availability: in the past most applications only needed to be available during business hours.
With the rise of internet banking, this evolved to 24/7 availability, but occasional downtimes during
the night (for batch processes, maintenance activities or upgrades) were still acceptable. Today
customers expect availability all the time, even in case of unexpected failures or when deploying
software upgrades. This imposes an architecture with a lot of redundancy, implementing
techniques to avoid data migrations, ensuring that multiple versions of the same service can run in
parallel...

High performance: customers expect all actions, even complex calculations, to happen in a matter
of seconds. This requires the implementation of several techniques, like data and result caching (at
different layers), pre-calculation of results, parallel processing of calculations...
Personalized services: customers expect that the banking products and services are automatically
adapted to the individual current needs of the customer, e.g. dynamic pricing, adaptive screens
anticipating the next best action for the customer, filtering out irrelevant products and services...
This requires the execution of real-time analytics on vast amounts of customer data and adapting
in real-time the ongoing business processes based on the results of these analytics.

Complexity of banking regulations and new taxes: after the Financial Crisis, banks have been
overwhelmed by new regulations and new, which are often the result of a political compromise
between different conflicting opinions. The result are complex regulations and tax rules, often with
specific local flavors, which increase the overall complexity of the banking IT landscape.

Organizational Process Assets

The United Coconut Planters Bank, more popularly known by its initials, UCPB, or by its old
name, Cocobank, is a government-controlled and one of the largest banks in the Philippines,
ranking within the top twenty banks in the country in terms of assets. It is the only
existing universal bank not listed on the Philippine Stock Exchange. The bank, owing to its
name, caters heavily to coconut farmers, but also serves a wide-ranging clientele.

In July 2020, the Philippine government raised its stake with the bank to 97%, thus resulting
for its conversion to a government-controlled bank.

The following are the procurement process and procedures of the bank:

1. Procurement Planning
2. Procurement Activities

Requirements:
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The first step in procurement is the planning and budgeting stage to come up with the Annual
Procurement Plan.

Input Process Output

1. Budget Office will

check the PPMP.
2. The BAC
Secretariat will
Budget Planning and The Board will
determine the
Preparation of the approve the annual
Mode of
Procurement Project Procurement and procurement plan
Management Plan draft the Annual and procurement
(PPMP) Procurement Plan activities can now
3. The BAC will proceed.
recommend the
APP for Board’s
Approval

After the approval of the Annual Procurement Plan, procurement activities will follow:

Input Process Output

1. Philippine
Bidding
Documents and 1. Invitation to Bid
Terms of 2. Pre-Bid Award and
Reference Conference Implementation of
2. Bidder’s 3. Bid Opening Contract
Eligibility and 4. Bid Evaluation
Financial 5. Post
Requirements Qualification

Solutions Performance Assessment

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To measure the bank’s procurement activities, the GPPB adopted the use of Agency Procurement
Compliance and Performance Indicators (APCPI) System on 1 June 2012 as the standard procurement
monitoring, assessment and evaluation tool which aim to determine, in a qualitative and quantitative
manner, procurement strengths and weaknesses of agencies, and formulate a reasonable action plan to
address identified areas for improvement while adopting measures to sustain strengths alongside a
competitive, transparent, economical, efficient and accountable public procurement regime.
The APCPI is based on the Base Line Indicator and Compliance and Performance Indicator Systems of OECD
DAC Methodology for the Assessment of National Procurement Systems (MAPS), the Agency Procurement
Performance Indicators (APPI), and the Online Monitoring and Evaluation System (OMES) used by GPPB to
measure and evaluate agency procurement practices. The most recent version of the APCPI consists of four
(4) pillars, sixteen (16) indicators and forty (40) sub-indicators.

Stakeholder Concerns
The following are the of stakeholders: Users, Providers, Influencers, and Governance.

Users: they are basically the different units of the bank who will use the project to be procured
Providers: they are the bidders who wish to render their services to the UCPB
Influencers: Management Committee
Governance: Bids and Award Committee, President, Board of Directors, GPPB, BSP, Dept. of
Finance

TASK:

Define Business Needs:

The bank offers various universal bank products such as CASA, loans, and trusts. Its
subsidiaries also offer financial leasing and securities. Specific Products and Services are as
follows:

• Deposits
o Peso Accounts
Multi-One

• (All In One Savings and Checking Account)
An interest-bearing checking

account with ATM card and passbook


ATM Saving Account

Passbook Savings Account
Regular Checking Account
Start2Save Junior Savings Account
• An interest-bearing savings account for minors (below 19 years old) with
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 ATM and passbook. 


Pension Accounts for AFP, AFPSLAI, PVAO, and SSS

• An interest bearing savings account that caters to pensioners of the

Armed Forces of the Philippines (AFP), Armed Forces and Police Savings
and Loan Association, Inc. (AFPSLAI), Philippine Veterans Affairs 


U-Remit Account
• An interest-bearing account with an ATM or passbook and/or checkbook
intended for Overseas

o U-Remit ATM Saving Account

o U-Remit Passbook Saving Account

o U-Remit Peso Checking Account

o U-Remit US Dollar Savings Account

o Foreign Currency Accounts

US Dollar Savings Account

Euro Saving Account

Japanese Yen Savings Account

British Pound Savings Account

Australian Dollar Saving Account

Singaporean Dollar Savings Account

Canadian Dollar Savings Account

o Time Deposits

Peso Time Deposit

High Yielder

• A 5-year fixed term interest-earning deposit with monthly interest

payment

US Dollar Time Deposit

• Card Products
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 o UCPB Visa Debit EMV Card

ATM card linked to a UCPB Savings or checking account/s with access to the Visa
and Bancnet withdrawal and purchases/payment.

UCPB Visa eMoney Card

Reloadable ATM card used for different disbursements such as contractual

payroll, dividend/commission payments, loan disbursements and remittances.

o UCPB U-Remit Card

ATM card linked to a UCPB U-Remit account
with access to the VISA and
Bancnet network of cash withdrawal and purchases/payment.

o Start2Save Junior Savings Card

ATM card linked to a UCPB Start2Save (S2S) account with access to the UCPB
and BancNet ATM network.

• Electronic Banking Facilities

o UCPB CM.Biz (Corporate Internet Banking)

Internet banking facility for corporate clients. It provides 24/7 access to accounts
through the UCPB website (www.ucpb.com)


o UCPB Connect (Retail Internet Banking)

Internet banking facility for individual clients. It provides 24/7 access to accounts
through the UCPB website (www.ucpb.com). 


o UCPB Mobile Phone Banking Service

Internet banking facility that allows clients to perform banking transactions using
iOS or Android mobile phones and gadgets. 


o UCPB Automated Teller Machine (ATM)

Refers to ATM/s installed within (on-site)
or separate (off-site) from a UCPB

branch. Off-site deployed ATM/s includes In-Plant ATM/s or ATM/s installed at a
client’s premises.

o Mobile ATM Service

• Remittance Services

o Inward Remittances Through Tie-Ups and Correspondent Banks

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 A fund transfer facility which caters to Overseas Filipino remitters (corporate or
individual)
Correspondent (local or foreign) and Local Banks intended for
payment to an individual or corporate UCPB accountholder or non-
accountholder.

• Cash Management

o Collections

Bills Payment

Point of Service (POS) Collection Service

Internet Payment Gateway

• A web service facility that allows clients to collect online and real-time
payments from their customers via the Internet. 


Post-Dated Check Warehousing with Online Facility (PDC.Biz)

• An online service that allows clients to encode and monitor post-dated

checks warehoused through UCPB branches. The checks will be
immediately credited to the client’s UCPB account upon maturity. 


Corporate Collection Services

• A service that collects check payments from corporate clients or the

corporate client’s key accounts and customers on a mutually agreed
schedule for credit to the client’s account. 


Deposit Pick-up/Cash Delivery Service

• Is a service that picks up a client’s deposits at the client’s place of business

or pick-up points on days mutually agreed upon by the client and the
Bank. 


Night Depositary Service

• Is a service that allows clients to drop off deposits for safekeeping after
banking hours or day/s. 


National Government Collections

• A facility that enables various government institutions to collect

contributions and/or payments through UCPB. 


• Disbursements
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 Checkwriter.Biz

• 
An online check disbursement service that allows check printing, check
release as well as reporting of issued, claimed/unclaimed, negotiated and
outstanding checks. 


Payroll Facilities

Government Payments

o Account Management

Automatic Transfer Arrangement

• A services that enables transfer of funds automatically from a client’s

savings account to a checking account to ensure funding
for issued
checks.

Sweep Facility

• A facility that enables transfer of balances automatically from different

UCPB accounts
to one “mother” account for easier monitoring and
reconciliation.

Customize Statement of Account

• A service that allows clients to receive readily available electronic account

statements
using universal formats such as MT 940
or Multi Cash
Format.

o Special Services

Conduit Clearing Arrangement with Online Facility (CCA.biz)

o A service that facilitates the clearing requirements of a financial

institution that not a member / participant in that clearing process
conducted by the Philippine Clearing House Corporation (PCHC), BSP, and
US Clearing System (for Dollar CCS).

• Depositary and Custodianship Service

o A service where upon designation by the Rural/ Cooperative Bank relative

to their availment of
the rediscounting facility of the Bangko Sentral ng
Pilipinas, UCPB as custodian bank acts as depository of the rediscounting
proceeds and custodian of
the covering credit instruments and collateral
documents of the Rural/Cooperative Bank in trust for and subject to the

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 concurrence of BSP.

• SSS Pension Crediting

• SSS Sickness and Maternity Benefits Payment through the Bank

• Direct Deposit for US Pensioners

Bancassurance

• Clients’ access to insurance products of UCPB’s accredited insurance partners,

United Coconut Planters Life Assurance Corp. (COCOLIFE) and UCPB General
Insurance Company, Inc. (UCPB GEN).

Commercial Credit

• Non-Trade Short-Term Credit Facilities

o Omnibus Line

o Promissory Note-Peso/Foreign

A case-to-case one-time loan transaction with a validity of less

than one (1) year. 


o Promissory Note vs. Assignment of Trade Receivables

A revolving credit line with a validity of one (1) year evidenced by

way of short-term promissory notes.

o Domestic/Foreign Bills Purchase

A credit accommodation in the form of same day
credit of

peso/local currency or foreign checks
deposited to the
borrower’s account with the bank.

o Foreign Currency Settlement

A credit accommodation via crediting the
borrower’s deposit

account based on the amount
Foreign Bank) to be received by
the bank in the afternoon of the same day. 


o Short-Term Loan

A short-term credit accommodation with a term of



• Non-Trade Long-Term Loan

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 o Term Loan-Peso/Foreign Currency

Loan accommodations of more than one (1) year

acquisition,

permanent working capital and other 
long-term requirements. 


o Project Finance-Bilateral/ Syndicated-Peso Foreign Currency


Long-term financing of a new capital installation or refinancing

of a recently built installation

o Term Loan with LGUGC Guarantee

• Trade Financing

o Documentary Credit-Foreign/Domestic

o Standby Letter of Credit-Foreign/Domestic

Refers to a Letter of Credit which the Bank issues on behalf of its

customer to serve as a guarantee 


o Trust Receipt Financing

A transaction agreement, solely used for Letters of Credit

arrangements, where the Bank who owns/ holds absolute title or
security interests over possession of the client upon the latter’s
execution and delivery of a trust receipt.

o Shipside Bond/Bank Guarantee

A transaction where the bill exchange and documents are sent to

the importer/buyer’s bank with an instruction to release the
documents only after the importer/buyer’s acceptance of the bill

of exchange payable at a future determinable date.

o Documents Against Acceptable

A transaction where the bill exchange and documents are sent to

the importer/buyer’s bank with an instruction to release the
documents only after the importer/buyer’s acceptance of the bill
of exchange payable at a future determinable date.

o Documents Against Payment

A transaction where the documents are sent to
the

importer/buyer’s bank with an instruction to release the
documents only after payment has been made.

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 o Open Discount Arrangement

o Direct Remittance

A service that allows funds abroad to be credited 


o Advance Payment

o Collection of Customs Duties and Taxes

o E2M

o Export Advance

Pre-export financing where loan advances are made by the Bank

to an exporter/client to fund the production of good exported.
This is usually secured by assignment of export proceeds evidence
by a letter of credit (LC), sales contract or purchase order (PO).

o Export Bill Purchase

A type of post shipment where the Bank purchases outright the

sight/usance clean or discrepant export drafts/bills presented by
an exporter/client for negotiation.

o Export Bills for Collection

• Treasury

o Peso-Denominated Investments

Short Term

• Treasury Bills

o Short-term instruments with maturities of not more than one

year, in denominations beginning at USD1,000.00. 


• Corporate Bonds

o Secure or unsecured, Peso-denominated medium to long-term

debt instruments issued by private or government-owned
corporations 


• Repurchase Agreement

Long Term

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 • Government Bonds

o Negotiable or tradable instruments that
are fully guaranteed by

the Philippine Government; considered credit risk-free and can be
used as collateral for loan facilities. 


• Corporate Bonds

o Secured or unsecured medium to long- term debt instruments

issued by private or government-owned corporation. 


o US Dollar-Denominated Investments

Republic of the Philippines (ROP) Dollar Bonds

• Borrowings of the Philippine Government abroad with tenors ranging

from 1 to 25 years and may 


Prime Corporate Bonds

• Secure or unsecured, USD-denominated medium to long-term debt

instruments issued by private or government-owned corporations. 


o Foreign Exchange - Involves the buying and selling of one currency against another at an
agreed rate of exchange and amount, with the physical delivery of the two currencies

on an agreed date and time in the future.

Spot Transactions

• An agreement to exchang two (2) currencies at a within two (2) business

days.

Forward Transactions

• A transaction to buy or sell one currency against another at a rate agreed

on the date of the contract for the value or delivery/settlement date.

• Consumer Loans

o Auto Loans

Brand New

Second Hand

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 Refinancing

Fleet Financing

o Home Loans

Condominiums, Townhouses, Houses and Lots

Refinancing, Construction/Renovation. Multi-Purpose Loans

o Personal Loans

Your Easy Salary Loan (YES Loans)

Salary Loans (Corporate Arrangements)

o Small Business Loans

Term Loans

Promissory Note (PN) Line

Franchise Loan

o Franchise Loans

• Trust

o Personal Trust Services - Wealth/asset/fund management services aimed towards

individual/personal accounts.

Personal Management Trust Accounts

Individual Agency Accounts (IMA)

Administratorship

Executorship

Guardianship

Safekeeping

Escrow – Buy and Sell, Capital Gains

o Corporate Trust Services - Wealth/asset/fund management services aimed towards

institutional/corporate accounts. 


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 Institutional Agency Accounts (IMA)

Employee Benefit Fund Management

Mortgage Trust Indenture

Loan Agency

Pre-Need Fund Management

Safekeeping

Escrow – Buy and Sell, POEA

o Unit Investment Trust Funds (UITF) - An open-ended pooled trust fund denominated in
pesos, or any acceptable currency, which is prudently operated, administered and
trusteed by a trust entity, the United Coconut Planters Bank – Trust Banking Group
(UCPB-TBG) and made available by participation. 


UCPB Cash Management Fund

UCPB US$ Money Market Fund

UCPB Peso Bond Fund

UCPB High Dividend Fund

UCPB Philippines Index Equity Fund

UCPB Balanced Fund

UCPB Equity Fund

• Subsidiaries

o UCPB Savings Bank

Peso Accounts

Cash Management

Consumer Loans

Commercial Loans

Other Services

• Domestic Remittance
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 • Safety Deposit Box

• Manager’s Check

• eCash Card

o UCPB Leasing and Finance Corporation

Financial Lease Facility - A mode of extending credit through a non- cancellable

lease contract under which the
lessor purchases or acquires, at the instance
of
the lessee, machinery, equipment, motor 
other movable and immovable
property in the purchase price or acquisition cost, including an obligatory period.



• Direct Lease

• Sale and Leaseback

Amortized Commercial Loans

• A type of credit facility in the form of a loan to 

requirement. The facility

is secured by a mortgage 
over chattels or real property. 


Receivable Discounting

• A revolving credit line with the validity of one
(1) year available through
the discounting of acceptable trade receivables evidenced by third- party
customer’s post-dated checks or sales invoices and delivery receipts or
installment contracts. 


o UCPB Securities Corporation

Equities Trading – Philippine Market

• Traditional

o Buying and selling of securities listed at the Philippine Stock

Exchange (PSE) with assistance and trading execution performed
by the licensed stock traders of UCPB Securities, Inc.

• Online Trading

o Buying and selling of securities listed at the PSE with trading

execution performed by the client via UCPB Securities, Inc.’s
online trading facility.

Lodgement of Securities
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 • Upon request of client, endorsed or signed physical scripless/electronic
form.

Upliftment of Securities

• Upon request of client, stocks in scripless/ electronic form are converted

to physical

Assess Capacity Gaps

The following are the organization gaps in the transition:

• Transition from private to government policies and practices.

• In the company, there are no formal transition team/committee which assure the smooth
transition of the practices.
• HR, finance, and procurement units are working independently without guidance from a
transition team or leader which makes the transition bloody.

In addition, the pandemic also bolster the difficulty in the conduct of the bidding activities due to
health safety protocols. BAC meetings online has always been a challenge including the routing of
the documents.

Determine Solution Approach

The recommended solution is creating a transition team / committee which is led by a good and
competent team leader which will direct all involved units of the action plans to be taken. The
committee should meet regularly to monitor the milestones and address possible problems /
concerns.

An integrated system of budget and procurement is also recommended to the ease of planning and
report generation.

For the pandemic concern, ITC will play a big role to ease the difficulty. There should have meeting
stability of system of meeting online. The e-signature policy should also be established for the fast
routing of documents.

Define Solution Scope

For the organization solutions this will address the miscoordination with different units and they
are lost on implementing respective projects because of different and unclear directions.
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For the ITC solution, the scope of which is the virtual conduct of bidding activities and routing of
procurement documents which are compliant and effective.

Define Business Case

The goal of the said solutions is to iron out the transitional difficulties of UCPB in order to give the
best products and services to its customers. If the bank could procure the projects needed by the
business units, it will affect the quality of services to its customer which is countervailing to its
Mission-Vision.

OUTPUT:
Business Case

The stakeholders must realize the lack of direction and the need to regroup in order to attain
smooth transition and should lay down all the concerns to transition team and the transition
brainstorm for solutions. The organization should take the risk because inorganized processes will
subject stakeholders to Commission on Audit findings and/or Ombudsman cases. Upon
implementing the solutions, the bank render its mandate to the public more effectively.

Business Need:

The bank needs an ironed out government budgeting and procurement process in order to the
business units focus on generating income for the bank and to better serve their clients.

Required Capabilities:

The bank must be able to designate or hire superb members of the transition team as well as
consultants in the implementations of the modernization of course following the government
procurement laws.

Solution Approach:

The transition team will address different policy gaps and integrate the processes of different units
who are currently working independently. They will make sure that all units are working and in hand
to avoid conflict of policies and finger pointing.

The modernization approach will address the weak budgeting and procurement linkage as well as
the poor online meetings and document routing. In this modernization, there will be a system
wherein the end user will input their procurement items which will be integrated in the budget. This
will save time in balancing of figures in the preparation of the annual procurement plan. Also, digital
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signature policy should also be established to properly administer the routing of procurement
documentations.

Solution Scope:

The solutions will cover the whole budgeting and procurement process of the bank which will
mitigate the risk of non-compliances with regulatory bodies which will eventually lead to better
services to the customers.

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