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

CBS-1 Deposit & Account Services

For EastWest Banking Corporation, the identification and decomposition of Critical Business Services (CBS) into detailed processes form a foundational step in implementing a robust operational resilience framework.

Among these services, CBS-1 Deposit and Account Services is a core banking function that directly supports customer trust, access to liquidity, and day-to-day financial transactions.

As such, any disruption to this service can have immediate and widespread consequences for customers and the broader financial system.

In alignment with the expectations set out by Bangko Sentral ng Pilipinas under Circular No. 1203 Series of 2024, banks are required to go beyond high-level service identification and perform a granular breakdown of end-to-end processes.

This decomposition into Sub-CBS enables institutions to better understand operational dependencies, identify potential points of failure, and establish targeted resilience measures across people, processes, technology, and third-party providers.

By articulating the detailed processes that underpin CBS-1, EastWest Banking Corporation strengthens its ability to manage disruptions proactively and ensures that critical customer services remain available within defined impact tolerances.

Purpose of the Chapter

The purpose of this chapter is to provide a structured and comprehensive breakdown of the detailed processes (Sub-CBS) that support CBS-1 Deposit and Account Services for EastWest Banking Corporation.

It aims to help readers understand how a high-level critical service is translated into actionable and measurable components that can be analysed, mapped, and tested within an operational resilience programme.

By the end of this chapter, the reader is expected to gain clarity on the end-to-end service architecture, appreciate the importance of process-level granularity, and be equipped to apply this approach to identify dependencies, set impact tolerances, and conduct scenario testing in subsequent stages of the operational resilience methodology.

In alignment with the expectations of the Bangko Sentral ng Pilipinas under Circular No. 1203 Series of 2024 (Guidelines on Operational Resilience), banks are required to identify and document Critical Business Services (CBS) and map them into granular, end-to-end processes.

These detailed processes (Sub-CBS) enable the institution to assess vulnerabilities, define impact tolerances, and perform scenario testing.

For CBS-1 Deposit and Account Services, the following Sub-CBS breakdown reflects industry practices and regulatory expectations for Philippine banks.

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	Captures customer data, product selection, and submission of account opening requirements through branch or digital channels.
1.2	Customer Identification and Verification (KYC/CDD)	Performs identity verification, sanctions screening, and customer due diligence in compliance with AML/CFT regulations.
1.3	Account Approval and Opening	Reviews the application, performs risk checks, and formally creates the customer account in the core banking system.
1.4	Initial Funding and Deposit Booking	Processes initial deposits and records transactions in the bank’s ledger and core systems.
1.5	Product Terms Setup and Account Parameter Maintenance	Configures account features, including interest rates, fees, limits, and account conditions.
1.6	Deposit Transactions Processing	Handles deposits (cash, cheque, electronic), posting, and settlement across channels.
1.7	Withdrawal and Funds Access Processing	Enables customer withdrawals via branch, ATM, and digital channels while enforcing controls and limits.
1.8	Account Servicing and Customer Maintenance	Supports updates to customer information, account modifications, and service requests.
1.9	Interest, Fees, and Charges Processing	Calculates and applies interest accruals, service charges, and penalties in accordance with product terms.
1.10	Statement, Passbook, and Balance Reporting	Generates account statements, passbook updates, and real-time balance inquiries across channels.
1.11	Digital Account Access and Channel Integration	Provides customer access via mobile banking, internet banking, and API integrations with secure authentication.
1.12	ATM and Card-Based Access Management	Manages debit card issuance, ATM withdrawals, PIN services, and card lifecycle controls.
1.13	Account Reconciliation and Exception Handling	Performs daily reconciliation of transactions and resolves discrepancies or failed postings.
1.14	Dormancy, Holds, Restrictions, and Account Control Administration	Applies regulatory or internal controls such as dormancy status, legal holds, and account freezes.
1.15	Fraud Monitoring and Transaction Surveillance for Deposit Accounts	Detects and investigates suspicious activity using fraud-monitoring systems and transaction analytics.
1.16	Complaints, Disputes, and Service Recovery	Handles customer complaints, dispute resolution, and service recovery actions.
1.17	Regulatory Reporting and Compliance Monitoring	Ensures accurate reporting to regulators and compliance with BSP and AML requirements.
1.18	Incident Response, Business Continuity, and Service Recovery	Activates contingency procedures to maintain or restore deposit services during disruptions.

Regulatory Alignment and Operational Resilience Requirements

The Bangko Sentral ng Pilipinas Circular No. 1203 (2024) establishes clear expectations for banks, such as EastWest Banking Corporation, to strengthen operational resilience. Key requirements reflected in the Sub-CBS design include:

1. Identification of Critical Business Services (Critical Operations)

Banks must identify services whose disruption would significantly impact customers or financial stability.

Example: Deposit withdrawals (Sub-CBS 1.7) are considered critical because they directly affect customers' access to funds.

2. End-to-End Mapping of Processes and Dependencies

Institutions must map the full service chain, including people, processes, technology, and third parties.

Example: Digital Account Access (1.11) depends on mobile apps, authentication systems, telecom networks, and cloud infrastructure.

3. Establishment of Impact Tolerances

Banks are required to define acceptable levels of disruption (e.g., maximum downtime).

Example: ATM and digital banking services may have low tolerance for downtime (e.g., near real-time recovery expectations).

4. Scenario Testing and Severe but Plausible Events

Institutions must test resilience under stress scenarios.

Example: Cyberattack affecting online banking (Sub-CBS 1.11) or system outage impacting transaction processing (1.6).

5. Continuous Monitoring and Governance

Operational resilience must be embedded into governance frameworks with regular review and improvement.

Example: Fraud Monitoring (1.15) and Regulatory Reporting (1.17) ensure ongoing oversight and compliance.

The detailed articulation of Sub-CBS for CBS-1 Deposit and Account Services provides EastWest Banking Corporation with a clear and structured view of how this critical service operates at a granular level.

This process-level visibility is essential for identifying vulnerabilities, assessing interdependencies, and implementing appropriate controls to ensure service continuity.

By aligning this breakdown with regulatory expectations of the Bangko Sentral ng Pilipinas, the bank not only strengthens compliance but also enhances its operational resilience.

The Sub-CBS framework serves as a critical input for subsequent activities, including dependency mapping, resource mapping, impact tolerance setting, and scenario testing.

Ultimately, this chapter reinforces the principle that resilience is built from the ground up—through a deep understanding of the processes that deliver critical services.

With this foundation in place, EastWest Banking Corporation is better positioned to anticipate disruptions, respond effectively, and recover swiftly, thereby safeguarding customer confidence and maintaining financial stability.

EWB Title Banner

eBook 3: Starting Your OR Implementation
CBS-1 Deposit & Account Services
CBS-1 DP	CBS-1 MD	CBS-1 MPR	CBS-1 ITo	CBS-1 SuPS	CBS-1 ST

Gain Competency: For organisations looking to accelerate their journey, BCM Institute’s training and certification programs, including the OR-5000 Operational Resilience Expert Implementer course, provide in-depth insights and practical toolkits for effectively embedding this model.

More Information About OR-5000 [OR-5] or OR-300 [OR-3]

To learn more about the course and schedule, click the buttons below for the OR-300 Operational Resilience Implementer course and the OR-5000 Operational Resilience Expert Implementer course.