[OR] [BPI] [E3] [CBS] [1] [DP] Deposit and Account Services

CBS-1 Deposit & Account Services

Deposit and Account Services form the foundational backbone of any universal bank, and for The Bank of the Philippine Islands (BPI), this critical business service (CBS-1) underpins customer trust, liquidity management, and daily financial transactions.

[OR] [BPI] [PH] [E3] [CBS] [1] [DP] Retail Deposit and Account Services

In the context of operational resilience, CBS-1 encompasses a comprehensive set of end-to-end processes that support the deposit account lifecycle—from onboarding and verification to transaction processing, servicing, and reporting.

These processes must be clearly defined, mapped, and assessed to meet regulatory expectations, particularly under BSP Circular No. 1203, Series of 2024, which mandates that financial institutions identify critical business services, map dependencies, and establish impact tolerances.

Purpose of the Chapter

The purpose of this chapter is to provide a structured and detailed breakdown of the key business processes (Sub-CBS) that constitute CBS-1 Deposit and Account Services for BPI.

By presenting these processes clearly and systematically, this chapter enables stakeholders to understand the operational components that must be protected, prioritised, and tested under an operational resilience framework.

It is designed to help business units, risk managers, and resilience practitioners align their process-level understanding with regulatory expectations, particularly in identifying vulnerabilities, mapping dependencies, and supporting subsequent stages such as impact tolerance setting and scenario testing.

Ultimately, this chapter serves as a foundational reference for building a resilient deposit services capability capable of withstanding severe but plausible disruptions.

Table P1: Detailed Processes for CBS-1

Sub-CBS Code	Name of Sub-CBS	Description of Sub-CBS
1.1	Customer Onboarding and Account Application	Initiation of customer relationship through branch, digital, or assisted channels, including capture of customer data, product selection, and account application submission.
1.2	Customer Identification and Verification (KYC/CDD)	Execution of Know Your Customer (KYC) and Customer Due Diligence (CDD) processes, including identity verification, sanctions screening, and compliance with AML/CFT regulations.
1.3	Account Approval and Opening	Review and approval of account applications based on risk, compliance, and product criteria, followed by account creation in core banking systems.
1.4	Initial Funding and Deposit Booking	Processing initial deposit transactions, validating funds, and posting to customer accounts to activate the account.
1.5	Product Terms Setup and Account Parameter Maintenance	Configuration of account features, including interest rates, fees, limits, and product-specific rules, within the banking system.
1.6	Deposit Transactions Processing	Handling of routine deposit transactions, including cash deposits, cheque deposits, and electronic credits via various channels.
1.7	Withdrawal and Funds Access Processing	Processing of withdrawals via ATM, branch, online banking, or over-the-counter transactions, ensuring authentication and funds availability.
1.8	Account Servicing and Customer Maintenance	Ongoing maintenance activities such as updating customer information, account modifications, and handling service requests.
1.9	Interest, Fees, and Charges Processing	Calculation and application of interest earnings, service fees, penalties, and other charges based on account terms.
1.10	Statement, Passbook, and Balance Reporting	Generation and delivery of account statements, passbook updates, and real-time balance inquiries across channels.
1.11	Digital Account Access and Channel Integration	Provision of secure access to accounts via digital platforms (mobile banking, internet banking), including authentication and session management.
1.12	Reconciliation and Exception Management	Monitoring and reconciling transactions across systems, identifying discrepancies, and resolving exceptions.
1.13	Fraud Detection and Transaction Monitoring	Real-time and post-transaction monitoring for suspicious activities, leveraging rules engines and analytics to detect fraud.
1.14	Regulatory Reporting and Compliance Monitoring	Compilation and submission of required regulatory reports and ensuring compliance with BSP and other regulatory requirements.
1.15	Business Continuity and Recovery	Execution of continuity plans, including failover, recovery procedures, and manual workarounds to ensure service availability during disruptions.

Regulatory Requirements and Examples (Philippine Context)

Aligned with BSP Circular No. 1203 Series of 2024, the following operational resilience requirements are particularly relevant to CBS-1:

1. Identification of Critical Business Services

Banks must identify services whose disruption would significantly impact customers or financial stability.
Example: Deposit withdrawals and account access are classified as critical due to their direct impact on customer liquidity.

2. Mapping of Interdependencies

Institutions must map dependencies across people, processes, technology, and third parties.
Example: Deposit processing depends on core banking systems, ATM networks, payment switches, and third-party service providers.

3. Establishment of Impact Tolerances

Banks must define acceptable levels of disruption (e.g., maximum tolerable downtime).
Example: Digital banking access may tolerate near-zero downtime during peak periods.

4. Scenario Testing (Severe but Plausible Disruptions)

Regular testing against disruption scenarios such as cyberattacks, system outages, or branch inaccessibility.
Example: Simulating a core banking system outage to test deposit transaction continuity.

5. Business Continuity and Recovery Capabilities

Banks must demonstrate the ability to continue or recover critical services within defined tolerances.
Example: Activation of alternate processing sites or manual procedures for deposit transactions.

6. Governance and Oversight

Senior management must oversee resilience strategies and ensure accountability.
Example: Board-level reporting on service resilience metrics for deposit services.

The decomposition of CBS-1 Deposit and Account Services into detailed Sub-CBS processes provides a critical foundation for implementing operational resilience within The Bank of the Philippine Islands (BPI).

By clearly identifying and structuring these processes, the organisation gains visibility into the operational building blocks that sustain customer-facing services and financial stability.

More importantly, this structured view enables BPI to align with regulatory expectations under BSP Circular No. 1203 Series of 2024 by supporting dependency mapping, impact tolerance setting, and scenario testing.

As the bank progresses through subsequent stages of operational resilience implementation, these Sub-CBS processes will serve as the baseline for identifying vulnerabilities, strengthening controls, and ensuring that critical services remain resilient to severe but plausible disruptions.


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