By: Venus P. Hernandez MBA 510 Introduction The Banking Industry in today’s era has been experiencing rapid growth and changes. Many financial institutions feel the urge of merging and acquiring as a way of competing with a growing array of strong financial service providers such as banks, insurance companies, mortgage companies, etc. Background of Banco de Oro • BDO, known as Acme Savings Bank, was acquired by the SM Group in 1976. Until 5 August 1996, when it was granted full universal bank status, the Bank’s main business was providing traditional loan and deposit banking services to the middle-market segment, including corporate suppliers of SM. • BDO listed its shares in the Philippine Stock Exchange (PSE) on 21 May 2002. On June 15, 2001, BDO merged with Dao Heng Bank's Philippine subsidiary, with BDO as the surviving entity.Dao Heng Bank As of 29 December 2005, Banco de Oro ranked 5th in terms of resources and loans, 6th interms ofdeposits, and 8th in terms of capital among the 41 commercial banks in the industry. Background of Equitable PCI Bank • Equitable PCI Bank is a commercial bank with an expanded banking license. It is the third largest private domestic bank in the country in terms of resources, capital, deposits, and loans. Offering traditional and innovative deposit products and services, cash management, international banking, commercial and corporate banking, money market, trust and treasury services, the Bank caters to the needs of corporate, middle market, and retail clients. • Combining the individual strengths of Equitable Bank and PCI Bank, the merger in 1999 created a strong presence insignificant market segments particularly the corporate and Filipino-Chinese middle market. Moreover, Equitable PCI Bank’s extensive distribution network provides the critical mass to further fortify the Bank’s position in the consumer/retail sector as it presents increased opportunities for cross-selling other retail products. Conclusion • A merger with EPCI would transform BDO into a dominant industry player, possessing market leadership and operational scale while enhancing shareholder value through a potential re- rating in the share price and reduced funding cost. • “The proposed merger of BDO and EPCI will create a bigger and stronger institution which will be among the leaders in the industry. It also continues the process of consolidation, which we believe is positive for the Philippine banking system. Conclusion • “Interbrand helped us with a program to instill behaviors in our staff that bring our brand proposition to life. More than a cultural aspiration, our employees genuinely practice ‘We find ways’ to help our customers. They’re engaged and are proud to work for BDO, always going the extra mile to ensure that customers receive the best overall banking experience, and deliver better results for all stakeholders,” Recommendation • This was an initiative endorsed and led by BDO’s President and senior leadership. While employee engagement efforts may start from the bottom up or within one division, true organizational impact ultimately requires the support of top leadership. • Segmenting the workforce similar to segmenting customers – it’s important to work not only with HR, but also key business and functional heads to understand the different needs of diverse employee groups. An individual working as a bank teller in the provinces will have different motivations than that of a senior banker working in head office. • Move beyond internal communications – emphasize how to live the brand through actionable behaviors and link these actions to desired customer experiences. Recommendation • Help internal staff understand the role they play on the outside. Many back-office function employees don’t understand or even realize the vital role they play in delivering and influencing the customer experience. • It’s important to generate a sense of momentum and energy. An effective tactic is to pilot programs that quickly demonstrate the positive business impact of engagement. • Create scalable solutions that can easily be accessed and delivered through digital channels. For BDO, Interbrand created an internal socialization tool that allowed staff at all levels and all locations to search and share exemplary ‘We find ways’ success stories. Thank you very much & Godbless us!!