Bpi Strategic Management Report

11182 Words Jul 15th, 2012 45 Pages
A strategic management paper for the
Bank of the Philippine Islands (BPI)

I. INTRODUCTION
Business managers are often worried with immediate issues and problems, which sometimes made them forget the objectives. Nowadays with the highly competitive business market, planning methods are needed to be able to perform smoothly and orderly.

Strategic management is used as a planning tool to help the organization do a better job, to know where to focus their energy on. It is used to guarantee that the employees are working towards the same goal, also to be able to consider and alter the direction of the firm with regards to the change in the business environment.

Bank of the Philippines Islands began in 1828, when King Ferdinand VII of Spain
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The adoption of mobile banking has stalled and today, ten years after the introduction of mobile banking, it plays a limited role in the banks channel strategy. Banks only recently began to improve branch efficiency through streamlining of processes, back office centralisations and a more sales centric branch model.

Key Findings: * Retail banking in the Philippines is characterised by its strong deposit collection focus to fund corporate banking, while consumer lending expansion remains slow with 10-15% year on year growth banks are more actively targeting the consumer segment. * Banco de Oro (BDO), Metropolitan Bank & Trust (Metrobank), and Bank of the Philippine Islands (BPI), command more than 60% of the retail deposits and assets * Retail lending grew at a CAGR of 13.5% since 2008, compared with 12% for total lending, compared to Thailand with 3.6% for retail and 11.2% for total lending or Indonesia with 15.7% in retail loan growth and 22.3% for total lending. * Credit card receivables have slowed down, while banks are aggressively pushing secured lending in form of residential mortgages and auto lending * Banks struggle with high cost inefficiencies, poor risk management capabilities and a branch centric distribution model * The big credit card players such BDO, BPI, Metrobank, Citibank, and HSBC cooperate to tackle credit risk through better risk frameworks,