A proposed business strategy for PCIB Savings Bank

• Main Author: Olympia, Peter Paul P.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2215
• Institution: De La Salle University

This plan was drafted to enable PCIB Savings Bank to achieve a net income after tax to at least P 200 million by December 31, 2003. To realize this, a gross revenue of at least P1 billion should be attained by the same date, considering that historically, net income after tax is 20% of the total revenue. To achieve said revenue, both fund-based and fee-based businesses will be developed, with more focus on the latter. Along that perspective, PCIB Savings Bank will be positioned as a convenience bank, considering that its target market is the retail type customer, whose banking needs are more transactional, their lifestyle vary, and are more experimental rather than traditional and conventional. Therefore, the concept of convenience banking, also known as direct banking (via phone, through the internet, ATMs, electronic kiosks, via smart chips, etc.), is definitely suited for them. New deposit products that will be launched will integrate non-traditional financial services with traditional checking and savings deposits (i.e. savings account together with a life insurance, or an educational plan, etc.). This strategy will protect the bank against the onslaught of financial disintermediation, which lessen the amount business will likewise be developed to help augment PCIB Savings Banks fund expanded to be able to reach out to a wider customer base. New loan products will also be launched to serve the credit needs of the community. Promotional effort will focus on an internal incentivation scheme, and will also leverage present clients through a depositors-get-depositor campaign. Deposit interest rate will continue to be tired, while the fee-based business will charge fixed amounts for clients that cannot, or will not, maintain required balances. Products will still be sold through the branches, which will be located more in neighborhoods and malls, as well as in selected commercial districts. Mini-branches, or those manned by at most 4 people will be established, with more machines (ATMs, Kiosks, etc.) deployed to service the transactional needs of the target market. The operating environment will be highly computerized in keeping with the convenience concept where one can bank anytime, anywhere, and any way.