GALARPE, REYMOND H.

BSBA-3 , CBMEC 302- STRATEGIC MANAGEMENT

1. Could Maybank’s big data and algorithmic approach identify food credit risks for small loans
without incurring the expense of multiple loan officers and brick and mortar branches?

In my opinion, Yes they can identify the risk because the big data and analytical technique used
by MY bank identifies good credit risks for small loans without the need for several loan officers
or physical locations. And also the company should have an strategic plan for the data that is
largely favorable in terms of anticipating customer behavior, and use one of the most effective
methods for identifying the right and potential markets for items.

2. Was the rural customer base for online banking robust enough to create a profitable program to
scale?

Base on my research and understanding that Rural parts of China is still one of the most
inaccessible places today, but thanks to the internet and advancements in communication
technology, banks can now reach consumers online from rural areas, which benefits both
parties by allowing for faster money transfers. Local financing is very difficult due to
transportation and security issues. Digital transactions give people connected to the Internet
and secure job from a stable location. All of this combined to create a large, profitable program.
Credit scoring is new in China, and banking pioneering efforts could pave the way for rural
economic development.

3. What did MYbank do to make a national credit-rating system for small enterprises successful?

MY Bank was one of the first of five private banks approved by the China Banking Regulatory
Commission. In addition to considering the privately owned model, regulators have assessed the
impact of online banking services. The China Banking Regulatory Commission welcomed a new
banking model that could increase the capital available to private entrepreneurs and boost
economic growth in ways not set up for state-owned banks. Improving credit access not only
lowers the cost of borrowing for individuals and small businesses, but also has the potential to
expand potential markets for financial and internet services.