bank strategy

7/23/2019 bank strategy

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1. Environmental Analysis

Economic Forecast (Opportunity)

Standard Chartered Asia economist Jef Ng said that the 2015 Philippine economy

will remain anchored amidst the tempest in the gloal !nancial system res"lting#rom the #re$"ent ad%"stments in &S interest rate'

(r' Ng pointed o"t that pro)ided )ital in#rastr"ct"re in)estments are laid in place*+he Philippines may li,ely reach the higher end o# the pro%ection this year' -ee.pect the Philippines to still o"tper#orm the rest o# its Asean neighors' /ts a rightspot in Asia' e added* +he Philippines is seen as a stando"t'

Relevance:Standard Chartered an, has strong con!dent to stay their "siness inthe Philippines d"e to good economic de)elopment and impro)ing standards o#li)ing* po)erty le)els in emerging mar,et economies 34(4s are dropping' ighopport"nity to reach their target mar,et eca"se o# high cons"mer mar,et and

in)estment potential in an economy' +he an, e.pects the ang,o Sentral ngPilipinas 3SP to increase interest rates y 50 asis points y the #o"rth $"arter o#this year* as ma%or economies contin"e to ad%"st their monetary policies as concerno)er the world economic growth linger'

Philippines GDP Growth Rate rise up to ! in "#1$

+he Philippines 67P ad)anced 1'1 percent in the third $"arter o# 2015* down #rom

an "pwardly re)ised 2'0 percent e.pansion reported in April to J"ne and elow

mar,et e.pectations' -hile the agric"lt"re sector #"rther contracted* growth in the

ser)ices and ind"stry sectors slowed' 67P 6rowth 8ate in Philippines a)eraged 1'19percent #rom 1::; "ntil 2015* reaching an all0 percent in the !rst $"arter o# 200:' 67P

6rowth 8ate in Philippines is reported y the Philippine National Statistical

Coordination oard'


2/22

+he Philippines has a stat"s o# emerging economy' /n recent years* the co"ntry haseen steadily growing mainly d"e to in?ow o# #oreign direct in)estment andremittances' +he Philippines is the worlds largest center #or "siness process

o"tso"rcing' +he co"ntry also has a strong ind"strial sector ased on theman"#act"ring o# electronics and other high percent in Bctoer o# 2015* the samepace as in the pre)io"s month and elow mar,et e.pectations' /t is the lowest !g"resince April 1:;9* as an increase in cost o# transport and a slower decline in cost o#ho"sing and "tilities ofset a #"rther slowdown in cost o# #ood and non percent* elow the central an,Hstarget range o# 2'0 percent to >'0 percent #or this year'

Core in?ation was recorded at 1'5 percent year


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percent* alcoholic e)erages and toacco 3E0'= percent* clothing and #ootwear

3E0'1 percent* health 3E0'2 percent and resta"rant and miscellaneo"s goods andser)ices 3E0'2 percent' -hile prices steady #or #"rnishing* ho"sehold and ro"tine

maintenance 3E0'1 percent and transport 3E0'2 percent* cost remained

"nchanged #or ho"sing* water* electricity* gas and other #"els* comm"nication*

recreation and c"lt"re and ed"cation'

Relevance: Standard Chartered an, can see this trend as an opport"nity toengage c"stomers and in)estors memers especially "sinesses in who needs moredisposale income' +he higher the in?ation rate e$"ates to higher cost o# li)ing andthe )al"e o# money depreciates #ast' /n?ation tends to increase spending andenco"rage orrowing at the e.pense o# sa)ings or cons"mption'

Forei*n E+chan*e Reserves an E+chan*e Rate increase in ,1-1"./#

0'D million (Opportunity)

Goreign e.change reser)es in Philippines increased to ;1*1>2'= &S7 million inBctoer #rom ;0*550'5 &S7 million in Septemer o# 2015' /t is the largest !g"re

since 7ecemer 201=@ mainly d"e to the national go)ernments net #oreign c"rrency

deposits and re)al"ation o# gold holding and income #rom o)erseas in)estments'

+he co"ntryHs central an, e.pects its #oreign reser)es to hit ;1*F00 &S7 million at

the end o# 2015* #ollowing a 9:*500 &S7 million a year earlier' Goreign 4.change

8eser)es in Philippines a)eraged 1=>F;'5; &S7 (illion #rom 1:F0 "ntil 2015*

reaching an all


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y the co"ntry central an,' +he reser)es are made o# gold or a speci!c c"rrency'+hey can also e special drawing rights and mar,etale sec"rities denominated in#oreign c"rrencies li,e treas"ry ills* go)ernment onds* corporate onds ande$"ities and #oreign c"rrency loans'

Relevance: Bne o# the main so"rces o# income o# Standard Chartered an, is in

#oreign e.change'

'tale Peso in "#1$ (Opportunity)

+he an, said that the c"rrent SP policy and S7A rates will ha)e a relati)ely m"ted

impact on the peso'

+he an, said the peso has een the est per#orming Asia e.


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-orld in 2050 p"lished this year'

Relevance: +here is a clear trend that co"ntries in the So"theast Asia* s"ch asPhilippines will grow and "ild their !nancial potential ca"sing a lot o# changes inthe mar,et in#rastr"ct"re and in)estment acti)ity and this is where SC plays acritical role in pro)iding mar,et leading ad)ice on e$"ity and !nancing sol"tions

". 'ocio 4 5ultural Forces

6he country7s emo*raphics will provie a oost to consumer spenin* inthe meium term (Opportunity)

Cons"mer Spending in Philippines increased to 1=21:;0 PP (illion in the third$"arter o# 2015 #rom 1=0190= PP (illion in the second $"arter o# 2015' Cons"merSpending in Philippines a)eraged ;;9F09'>F PP (illion #rom 1::; "ntil 2015*reaching an all


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6he Growin* 6ren o %nternet 8ar3etin* (Opportunity)

+he Philippines according to the Asia 7igital (ar,eting Association 3A7(A and the

/nternet -orld statistics* there are o)er a illion /nternet "sers in the Asia Paci!c

region* which amo"nts to o)er >FK o# the total /nternet "sers in the world'

+he Philippines* speci!cally has o)er >>'2 million "sers* the second highest ran,ing

in So"theast Asia and the Fth in the whole o# Asia' +he pop"lation is #orecasted to

do"le y 201F* according to J"lian Persa"d* #ormer 6oogle (anaging 7irector in

So"theast Asia'

+he Jan"ary 2015 L7igital /n the PhilippinesL snapshot o# -e Are Social co"nts that

among the total Philippine pop"lation o# 100'; million 3with "raniation at >:K*

there are >>'2 million acti)e /nternet "sers' B# these >>'2 million /nternet "sers*

:0K ha)e acti)e social media acco"nts'

/n the last #o"r years* /nternet access in the Philippines has grown y 500K* the

#astest rate in So"theast Asia* "t as mentioned in pre)io"sly* real growth is yet to

come "t itHs coming y #ast'

Philippines are leading in n"mers. -hile weHre yet to see the ma%ority o# the

Philippine pop"lation online* eno"gh data s"pports how addicted the Philippines isto the digital li#e' According to -e Are SocialHs 7igital 8eport as o# Jan"ary 2015* the

Philippines leads in a)erage L+ime Spent on the /nternetL thro"gh laptop and

des,top* and one o# the highest )ia moile worldwide'

Grom a gloal a)erage o# >'> ho"rsMday* the Gilipino spends an a)erage o# F'=

ho"rsMday online )ia laptop and ='= ho"rsMday )ia moile


7/22

RelevanceD +he growing trends now #or Gilipinos are conscio"s awareness in health

and wellness' 8egardless o# the stat"s an indi)id"al elongs to* awareness onhealthy li)ing is whats dri)ing the mar,et' Standard Chartered an, recognies thetrend as an opport"nity to come "p with prod"cts or promos on credit cards that willcater to that growing mar,et

9ocal operators are in the est position to win in the local mar3et ue totheir e+tensive networ3 inrastructure

7omestic an,s s"ch as P/* 7B and (etro an, also ha)e an ad)antage o)ertheir #oreign co"nterparts* as these home grown !nancial instit"tions ha)e moreranches and lower re$"irements #or initial deposit

Relevance:and maintained alance* ma,ing them more attracti)e to cons"mers'Bfering more ad)anced and sec"re card technology* as well as emphasiing theaility to "se the deit card o)erseas a #eat"re that is not pro)ided y most local


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companies may e one o# the ways #or m"ltinationals to capt"re shares in thecategory'

/n general* #oreign an,s ha)e their own limitation when it comes to e.panding theirmar,et share in the co"ntry' +hey are o"nd y laws* which slow down their growth

and mar,et e.pansion' C"rrently* a #oreign an, is mandated y law not to e.ceed9 local ranches across the co"ntry* that limits their networ, and mar,etaccessiility'

/. Political 9e*al Forces

9ow level o pulic et allows *overnment to oost spenin* urin*slowown (Opportunity)

an*3o 'entral to monitor an3s; usiness ris3 compliance moreclosely (Opportunity)

%mplementation o asel %%% (6hreat)

+he "ilding loc,s o# asel /// areD 3i higher $"ality and le)el o# capital* 3iiwidened ris, co)erage* 3iii pre)ention o# e.cessi)e le)erage* 3i) stronger li$"idity*3) addressing o# systemic ris,* and 3)i higher standards #or ris, management ands"per)ision'10 +hese are e.pected to enhance capital and li$"idity reg"lations o#the an,ing system and there#ore red"ce the intensity and #re$"ency o# !nancialcrisis'

According to (A6 32010a* an,s are li,ely to "se a comination o# thesemethods' +he choice may in part depend on the length o# time o)er which capitalneeds to e increased' A longer implementation period will gi)e an,s more?e.iility as regards the mechanisms they can "se to achie)e targets' +h"s* i# asel/// is implemented o)er longer periods* o"tp"t efects are e.pected to e smallerthan i# implemented o)er shorter periods'3httpDMMwww'sp'go)'phMdownloadsMp"licationsM2012Mwps201202'pd#Relevance:C"rrently* SC is at asel // le)el #or which they need to initiate a lot o#

capital raising acti)ities which may e ris,y #or the an,' +o meet the re$"irements

o# the asel /// re#orm* there is an e.pansion o# assets considered as li$"id to

incl"de in)estment grade corporate onds* shares and high $"ality mortgage

sec"rities'

. 6echnolo*ical Forces

itcoin < loc3 chain 6echnolo*y (6hreat)

itcoin < loc3 chain 6echnolo*y (Opportunity)

'tron* usiness Process Outsourcin* *rowth


9/22

%nustry Analysis an 5ompetitor Analysis

6he Philippine an3in* 'ystem

%nustry 6rens an Prolems in the an3in* %nustry

As "#1$ *ets uner way- it is time to ta3e stoc3 o some o the i**estchallen*es acin* the an3in* inustry this year 4 incluin* cyer=crime-cultural chan*e- more stress testin*- ever=increasin* re*ulatory scrutinyan a troule economic outloo3 in Asia- Europe an the 8ileEast- writes Aamir Khan.

1.5yer=crime 4 Facin* the >?ew @ave7 o criminal/t is now e.ceptional to read ao"t a an, roery where criminals ha)e entered

into a an, ranch and physically ta,en money o"t o# the "ilding' +he introd"ctiono# more efecti)e sec"rity systems* s"ch as "llet proo# windows and arriers andclosed


10/22

/. 8ore stress testin*Bne o# the concl"sions reached a#ter the an,ing crisis o# 200; is the notion thatan,s need to ha)e greater capital reser)es to a)oid eing too ig to #ail' As aconse$"ence an,s ha)e "ndergone stress tests and re$"ired to hold e)er greateramo"nts o# capital' +his a)oids dealing with the more thorny iss"e o# the inter'

an,s will ha)e to contin"e to in)est hea)ily in compliance and ris, monitoring toens"re that they can deal with this increasing reg"latory scr"tiny'

$. Facin* another economic ownturnBAs China #aces more "nrest in ong ong while its economy has een slowing downco"pled with 8"ssias own economic woes* the o"tloo, does not loo, promising' +he-estern economies are str"ggling to meet predicted growth rates and instaility inthe (iddle 4ast contin"es ca"se concern' Nor is it clear how long the historically low

interest rates and !scal engineering across the gloe can e maintained'

ow will the an,s #are with a new downt"rn in the gloal economy Stress testingand capital re$"irements will complicate matters* as an,s ha)e to step "p and playtheir part in helping indi)id"als and companies' -e can only hope that they are aleand willing to do so' 3httpDMMwww'an,ingtech'comM2909:2M!)e


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new reality is p"tting press"re on an,s to disting"ish themsel)es in an intensely

competiti)e* low


12/22

5lear an consistent ocus.+oo o#ten an,s try to e all things to all people' "t

that doesnt wor,' an,s m"st de!ne their strategy* ma,e trade


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the n"mer o# ho"seholds ser)ed per G+4 y =2 percent' 7"ring this time* the an,

cond"cted a detailed analysis o# the n"mer and type o# prod"cts sold per

ho"sehold and "ilt on the !ndings to generate amitio"s sales targets' y

realancing the wor,load and implementing more rigoro"s sales goals* it increased

the n"mer o# new prod"cts sold per G+4 daily #rom >'F to F'9* and grew then"mer o# an,ing ser)ices per retail ho"sehold y more than >5 percent'

E+ecutional e+cellence./ncreasingly* an,s m"st identi#y and address so"rces o#

comple.ity' +he !rst step is to red"ce or eliminate prod"ct )ariety that ma,es the

"siness more c"mersome and less eIcient or that doesnt create ade$"ate

)al"e' Ne.t* standardie /+ and operations "sing common processing architect"res*

deploy /+ reso"rces optimally* and p"t an operating str"ct"re in place that enales

scale' Ginally* simpli#y processes #or clients and employees'

Gor e.ample* another top million ann"al transactions across 200 legal

entities' +he net res"lt was a sa)ings in e.cess o# U200 million 3&SV2>9 million'

Ruthless perormance mana*ement.S"ccess#"l an,s de)elop clear data

bank strategy

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