Project Title: Information Systems Strategic Plan for BPI-Family Savings Bank Inc.

’s
Provincial Loans Operation Units

Proponent: Dexter Lloyd C. Cuajotor, MMII

IS Planner

Executive Summary

Competition is fierce in the market as everyone is after the same pie. Moreover, the market

evolves, so for the company to maintain market share or expand it, there is a need to meet if not exceed

the demands brought by the changes in tastes, needs and preferences of the target market.

The advent of novel developments in the field of information technology (IT) allows companies

to improve the way they do things, achieve their goals faster and establish a competitive advantage. It has

always been dynamic through time and in the changing global business. Hence, for an organization who

aims to take advantage of the benefits of IT, there is a need to integrate and properly use the available IT

tools.

BPI-Family Savings Bank, Inc.(BFB) which is involved in retail banking understands clearly

what it needs to do to be able to meet its goals by setting itself apart from competition. This is particularly

true for the Provincial Loans Operation Units.

However, while there is understanding, there is still a need to develop a suitable and

comprehensive IT environment. What has been provided by Family Bank Head Office sometimes require

adjustment in the local offices plus the fact that there are really technical concerns that should be

addressed such as improvement of the available essential software tools. What is noteworthy is that the

people in the organization from the line up to top management are willing to adhere to any change.

This paper will outline the Information Systems Strategic Plan for BFB’s Provincial Operation

Units.

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Introduction

Information System (IS) plays a vital role in any organization today. IS is in constant stirring to

develop the most fitting and eligible application to respond to a demand for improved customer service,

flexibility in production, product development and cost efficiency. It also plays a major role in data

integrity, network reliability and information protection from various threats which may compromise the

company’s performance. Moreover, this allows management to assess what is really important for the

organization specifically in the identification of: the process to improve, demand to meet, the problem to

solve, the strategies to implement change, the technology to use and the resources to be allotted.

The Provincial Loans Operation (PLO) Units of BPI Family Savings Bank Inc. handle the overall

backroom and support services to both BPI and BFB Marketing lending units. Primary responsibilities of

the units include preprocessing of loan applications, accounting, reconciliation, securities administration,

collection, remedial management of past due consumer loans including the filing of legal case

(Foreclosure, Sum of Money or Replevin) and the overall administration of Real Estate and other

Properties Acquired (ROPAs) in the assigned areas. There are nine (9) PLO Units all over the Philippines

strategically located in the following areas: Naga, Pampanga, Dagupan, Lipa, Cebu, Bacolod, Iloilo,

Cagayan de Oro and Davao.

These units coordinate with each other for policies, procedures and application systems. There are

also reports that are submitted to, shared and reviewed by Head Office which oversees the activities of all

nine Provincial Units.

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SWOT Analysis

Strengths

1. Trainable and dynamic human resource

2. Reliable support of Senior Management for IT- related initiatives

3. Sufficient computer hardware for the users

4. Manageable amount of data to process

5. Technical support and tools are available

Weaknesses

1. Proximity of the Provincial Loans Operation Units

2. Limited computer software licenses

3. There are no identified/trained IT administrator/support per unit

4. Tendency for management to disapprove the plan/proposal if it will not adhere to standards by the

internal IT team

5. Execution of the plan might be expensive

Opportunities

1. The BPI Computer Corporation, the bank’s internal IT Team, may assist in the implementation of

the new information systems

2. Open communication lines with other Provincial Loans Operation Units which would allow easy

coordination

3. The rapid development of new technologies

4. The availability of free online applications

5. The increase in the population of IT graduates who may be hired to join the company

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Threats

1. System security issues ex. Integration of a new system might lead to breakdown of other

information systems, among other possibilities.

2. Power shortage

3. Acts of God (earthquake, calamities)

4. Data security

Current IT Status

As of August 2011, the manpower complement of all units total to 166. Each Provincial Loans

Operation Unit has an average of 11 personnel composed of 9 staff and 2 Officers. There is also a Head

Office Unit composed of 4 personnel which oversees the activities of each PLO. Each unit is directly

reporting to the Head of the Consumer Loans Administration Department. The latter is reporting to the

Group Head of the Centralized Operations Group of the Unibank. Any plan/project/initiative requires the

endorsement of the Department Head for the approval of the Group Head.

The PLO maintains a 1:1 ratio of the computers to employees. There are also computers

dedicated for special functions such as the BIR’s E-DST system and the bank’s Imaging and Data

Archival and Retrieval System (IDARS). Ninety four percent (94%) of the computers use Windows XP

as the operating system, the rest are using Windows 98 but are already identified for replacement. Forty

eight percent (48%) of the computers use Core 2 Duo as the processor while the remaining 52% are

already Pentium 4. In terms of computer memory, 32% of the computers have 1GB memory while the

rest is very limited ranging from 128MB to 512 MB. In terms of age and depreciation, 25% of the

computers are already over 5 years old. In terms of computer monitors, 47% are already LCD while the

rest are still CRT. The PLO also maintains a 1:1 ratio of printers to employee. The printers are either

DeskJet or dot matrix. Furthermore, due to geographically dispersed location, only 22% of the

workstations are on Active Directory which secures access to the network such as the wallpaper and

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screensaver used in every computer as well as securing access to files. This includes a specific ID to

access the network. However, all computers are installed with Patchlink to facilitate remote and

scheduled installation of software and updates or upgrades without the need for the installation CD/DVD.

Software-wise, only 75% of the computers are installed with the Standard Microsoft 97-2003

version. However, all computers are with Lotus SmartSuite. The bank also uses the Lotus Notes as the

main collaboration tool. Internet access is available but highly regulated, specific sites are defined and

approved by senior management before any access is allowed. Computer connectivity is powered by

Bayantel and PLDT. There are databases that are linked in lotus notes and there also application systems

(loans, deposits) that are in mainframe connected through the internet and accessible to all users Unibank-

wide.

Currently the department is doing an inventory of the computer hardware for updating. It is a

policy to change computers that have been used for 5 years already.

Vision

A coherent, organized and efficient Provincial Loans Operation Units through the use of a suitable

information and communications technology.

Mission

To provide a venue where the nine Provincial Operation Units can interact with each other, access and

manage information and improve turn-around-time of service delivery to both internal and external

clients.

Priority Goals and Objectives

1. To reduce the number of application systems being maintained and accessed

2. To reduce the number of manual reports being prepared

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 3. To provide additional collaboration tool without incurring unnecessary expense

4. To promote a highly automated and IT-based processes and procedures.

Recommendations:

Recommendation #1: To centralize the loan application system for all products and Integrate loan

system inquiry through Automated Teller Machines (ATMs).

This will be a one access pass to all application systems of the unit which will include all loan

products (Auto, Housing, Business and Corporate Loans).

Rationale

Coherence and Standardization are two important factors in an organization. It is very important

that an organization puts a unified front to all of its stakeholders. Therefore, the ultimate aim is how to

make things easy for the employees and customers. In this day and age, differentiation of service delivery

is essential to maintain an edge in doing business.

Current Status and Discussion

Currently, there are several systems maintained by the PLOs for various loan products. This

means that users need to maintain several access ids, system administrators need to manage several

applications and there is a need to train employees for several systems when in fact this can all be

combined into one.

Effectiveness and Efficiency should go hand in hand and it will really be a big help for the users

and administrators alike if there is only one system that will be used. This would provide ease in

accessing client’s accounts and will reduce the turn-around-time in addressing issues. This will also

provide easy management of data thus giving the PLO an opportunity for data integrity and security.

Moreover, in the telephone survey conducted across PLOs in various areas, it was discovered,

that the bulk of customer inquiries are just to inquire basic information about their loans such as due date,

amortization due and outstanding balance. It is highly recommended that basic consumer loan information

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be made available through ATMs. This will automatically be an added feature for bank depositors who

have loans in the bank for whatever product. This is hitting two birds in one stone, by allowing self-

access of clients, queues will be shorter and phone call inquiries will be lesser. This will really be

convenient for all users and service delivery will really be improved.

Steps

1. For the top management to create a team that will analyze the present systems and identify which

system can be the host of all systems or if there is a need to purchase an entirely new program.

2. The team organized from the Special Projects Division of the bank will outline the conversion

activities and will write down the system specifications. It is important to understand what the

critical and essential requirements of the end-users are so that the right concerns will be given the

right solutions.

3. All key personnel should be oriented and given a specific set of tasks that should be accomplished

within a given period of time.

4. The internal IT team should be tapped to assist in the project

5. The ATMs should be analyzed and reconfigured to connect with the centralized loan system

6. When everything is set, the team should proceed with the programming, actual conversion,

testing, implementation and evaluation.

Required Involvement

1. Senior Management who will approve the project

2. The internal IT team who will do the actual programming

3. The Special Projects Department and the PLO Officers who will take part in the project

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Recommendation #2 Improve Collaboration Tools across PLO units

Rationale

Communication is very important for an organization to run smoothly. In line with this, the

collaboration tools create an avenue for better coordination within the organization. The tools bring

management, employees and customers closer to each other by allowing them to give feedback, identify

issues and make recommendations for improvement.

Collaboration is essential to the success of every human endeavor (George W. Reynolds). Hence

it is important for an organization to take advantage of whatever applicable tools that will pave the way

for better communication lines.

Current Status and Discussion

The nine PLOs are highly dispersed geographically. The units are strategically located in major

cities in the country. Currently, the basic communication tools include the lotus notes, landline and

cellular phone. The Lotus Notes is the mode for formal communication while discussions are done on

telephones or cellular phones. The limitation is that, there are very minimal discussion options. There is

no room to hold a one-time conference. It is best that the organization will employ the following:

a. instant messaging for quick communication to save on time and money on phone calls;

b. web conferencing for training modules of various policies and processes;

c. software on reports management to automate and improve the report preparation so that

decisions are made on time and accurately.

The above-mentioned collaboration tools are actually available in the company but are not currently used

by the department.

Steps

1. The Department Head should create a team who will coordinate with the Information Systems

Group and study available options

2. The team shall then coordinate with the end-users

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 3. A formal project proposal should be prepared and presented to outline the benefits and the

specific steps that should be undertaken

4. There should be training on how these tools will be used

5. The programs should then be tested

6. Policies should be outlined as guide on the proper use of the programs before the actual roll-out

7. Implementation should be monitored and duly evaluated for improvement

Required Involvement

1. The Department Head who will spearhead the creation of the team

2. The Internal IT group who will scout for and install the tools

3. PLO Officers and Staff who are the end-users

Recommendation #3 Centralize the Data Storage systems of collaterals and Fixed Furniture and

Equipments (FFE).

Rationale

It would be easier for management to access and monitor information of all concerned units when

the data is centralized. The organization can save a lot of time and resources when it does not have to

collect piece-meal information from various sources. Instead, it can immediately see the big picture which

is essential to decision-making.

Current Status and Discussion

Currently, the nine PLO units have stand alone collateral and FFE monitoring databases. This

means that when Head Office requires a certain report, a lot of time and resources are spent consolidating

data. The manual consolidation of data is always prone to errors and very time-consuming. More often

that not, there are units who are late in submitting the required data which also delays the report to

management. In addition, it is also very hard to paint the big picture to management due to the absence of

a centralized storage system. This is mainly aimed for easy archival and retrieval of documents and data.

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Steps

1. Senior management should create a team which will spearhead the project

2. The team should prepare the project proposal and corresponding justifications

3. The team should then scout for possible business partners who have programs suitable to the

PLO’s needs

4. System specifications should be outlined and customized with the applicable system

5. Project should be tested thoroughly

6. It shall then be implemented across PLOs.

7. The usage should be continuously monitored and evaluated

Required Involvement

1. Senior Management who will create the team

2. PLO Officers and Staff who will help outline the systems specifications and will be the end-users

3. The Internal IT group who will do the actual programming

Recommendation #4 Create a pool of in-house technical support personnel in the local offices

Rationale

Network is very critical in any organization. It is very important that there are no interruptions in

connection and breakdown of hardware since it will jeopardize service delivery. Any disruption of work

will lead to delay in the processing of various functions. Any organization simply cannot afford delay

because a computer breaks down or the connection is offline. There should be immediate aids at the

onset.

Current Status and Discussion

All of the nine units do not have technical expertise even in simple cases of computer breakdown

and connections. Each office hires an outsourced technician to provide technical diagnosis and immediate

aid while head office experts are fixing the matter. It will really help if officers or any point person will be

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identified and trained to be able to provide technical assistance in the local office. There is a need to train

people to resolve immediately connection and hardware problems so that there will be no disruptions and

service to clients will be continuously delivered.

Steps

1. The internal IT group should create a technical handbook

2. Each PLO should nominate a personnel who will be trained and will serve as local technical

experts

3. The team will be the local technical support

4. HR will be tapped to prepare the actual training and workshop of the team

5. There should be regular updates of the training for this technical team

6. There should also be hard copies of training modules for easy reference

Required Involvement

1. The Internal IT group who will provide the technical training

2. HR who will document the training and provide the logistics

3. The Department Head who will approve the project

4. PLO representatives who will form part of the technical support team

Recommendation #5 Implement a periodic review of the entire IT architecture of the department and

constantly generate end-user feedback

Rationale

There are developments and advancements in the field of information technology everyday.

Hence, there should also be upgrade of personnel training and constant evaluation of all systems to

maintain progress.

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Current Status and Discussion

The weakness of the department is that there is no actual periodic review of what is needed to be

updated and there is no room for documented feedback from the end-users. To constantly improve and

ensure that the department employs the latest and most efficient technology then there should be a review

of the IT architecture.

Steps

1. The internal IT team will create a database that will hold documented feedback/complaints and

problems of all application systems

2. The team should also outline the procedures on how the feedback will be elevated along with the

list of endorsers, approvers and implementors

3. There should be a roll-out of information on what should be done

4. The database will then be defined to allow access of users

5. Implementation will be evaluated

Required Involvement

1. Internal IT group who will create the database and outline procedures.

2. Department Head who will provide official instructions and approve the specifications of the

database.

3. PLO Officers and Staff users of the database and will provide the necessary review findings.

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IT Funding Strategies

Funding the different projects discussed in this ISSP will revolve around the following

assumptions and principles:

1. The bank will approve in its capital expenditure budget the expense that

will be incurred in the implementation of the project.

2. Whatever expense will be offset by compensating business or savings in

terms of manhours and actual reduction of processes and resources.

Implementation Plan

Information Systems Strategic Plan for BPI-Family Savings Bank Inc.’s Provincial Loans

Operation Units will be implemented as follows:

1. Evaluation of the current system and feedback from the end users.

Senior Management should spearhead the evaluation of the existing systems. The Internal

IT department will be the prime mover along with the support of all the end-users. In this manner

relevance and usability of the systems are always ensured.

2. Creation of new applications to integrate with existing systems

Before actual sourcing out for possible systems, the existing resources should be studied.

3. System development, testing and actual roll-out

The development team will proceed in creating the recommended application systems

including the actual testing, final implementation and evaluation

4. Solicitation of Feedback

This function is often neglected. However, it would really be helpful if the development

team will further enhance the system and areas to improve. This is the only way that dynamism is

maintained.

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