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

CBS-1 Deposit & Account Services

Deposit and Account Services form the foundational banking service for Philippine Trust Company, enabling customers to securely store funds, conduct daily transactions, and access financial services across physical and digital channels.

From an operational resilience perspective, this Critical Business Service (CBS-1) is highly sensitive due to its direct impact on customers, financial stability, and regulatory compliance.

In alignment with BSP Circular No. 1203 Series of 2024 issued by the Bangko Sentral ng Pilipinas, banks are required to identify, map, and maintain the resilience of critical business services by breaking them down into detailed processes. This enables institutions to assess vulnerabilities, dependencies, and recovery capabilities across the service lifecycle.

Purpose of the Chapter

The purpose of this chapter is to decompose the high-level CBS-1 Deposit and Account Services into granular Sub-CBS components. This structured breakdown enables Philippine Trust Company to:

Identify operational dependencies (people, processes, technology, and third parties)
Assess potential disruption points
Support impact tolerance setting and scenario testing
Align with regulatory expectations under BSP Circular No. 1203

By understanding these detailed processes, stakeholders can better design controls and resilience strategies to ensure continuous service delivery.

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	Collection of customer information, application forms, and initial documentation through branch or digital channels to initiate account opening.
1.2	Customer Identification and Verification (KYC/CDD)	Verification of customer identity and risk profiling in compliance with AML/CFT regulations, including screening against watchlists and sanctions databases.
1.3	Account Approval and Opening	Review and approval of account applications, assignment of account numbers, and creation of customer records in core banking systems.
1.4	Initial Funding and Deposit Booking	Processing of initial deposits, validation of funds, and recording transactions into the bank’s general ledger and core systems.
1.5	Product Terms Setup and Account Parameter Maintenance	Configuration of account features such as interest rates, fees, limits, and product-specific conditions within banking systems.
1.6	Deposit Transactions Processing	Handling of deposits via multiple channels (branch, ATM, online banking), including validation, posting, and reconciliation of transactions.
1.7	Withdrawal and Funds Access Processing	Processing of withdrawals via over-the-counter, ATM, and digital channels, ensuring proper authentication and fund availability checks.
1.8	Account Servicing and Customer Maintenance	Updates to customer information, account modifications, issuance of account-related services (e.g., address changes, account linking).
1.9	Interest, Fees, and Charges Processing	Calculation and posting of interest earnings, service fees, and penalties in accordance with product terms and regulatory requirements.
1.10	Statement, Passbook, and Balance Reporting	Generation and delivery of account statements, passbook updates, and real-time balance inquiries across customer channels.
1.11	Digital Account Access and Channel Integration	Integration of deposit accounts with digital banking platforms, ensuring secure access, authentication, and transaction capabilities.
1.12	ATM and Card-Based Access Management	Issuance, activation, and lifecycle management of debit/ATM cards, including PIN management and transaction enablement.
1.13	Account Reconciliation and Exception Handling	Daily reconciliation of transactions and balances, identification of discrepancies, and resolution of exceptions.
1.14	Dormancy, Holds, Restrictions, and Account Control Administration	Management of inactive accounts, imposition of holds or restrictions, and compliance with regulatory rules on dormant accounts.
1.15	Fraud Monitoring and Transaction Surveillance for Deposit Accounts	Continuous monitoring of transactions to detect suspicious activities, fraud attempts, and unauthorized access.
1.16	Complaints, Disputes, and Service Recovery	Handling of customer complaints, dispute resolution, and service recovery processes to restore customer confidence.
1.17	Regulatory Reporting and Compliance Monitoring	Preparation and submission of regulatory reports related to deposits and accounts, ensuring adherence to BSP requirements.
1.18	Incident Response, Business Continuity, and Service Recovery	Activation of incident management and business continuity plans to maintain or restore deposit services during disruptions.

Regulatory Requirements and Examples (BSP Circular No. 1203)

Under BSP Circular No. 1203 Series of 2024, Philippine banks such as Philippine Trust Company are expected to implement the following operational resilience practices:

1. Identification of Critical Business Services

Banks must identify services whose disruption could cause intolerable harm to customers or financial stability.

Example: Deposit and Account Services are classified as critical due to their role in liquidity access and payment facilitation.

2. Mapping of Interdependencies

Institutions must map end-to-end processes, including dependencies on:

Core banking systems
Payment networks (e.g., PESONet, InstaPay)
Third-party service providers
Example: Sub-CBS 1.6 and 1.11 rely heavily on digital banking infrastructure and telecom networks.

3. Setting Impact Tolerances

Banks must define acceptable levels of disruption (e.g., maximum downtime).

Example:

ATM withdrawal services may have a tolerance of near-zero downtime
Account balance inquiries must be restored within minutes to avoid customer impact

4. Scenario Testing

Banks must test resilience against severe but plausible scenarios.

Example scenarios:

Cyberattack affecting online banking (impacting Sub-CBS 1.11)
Core banking system outage affecting transaction processing (Sub-CBS 1.6, 1.7)
Natural disaster disrupting branch operations

5. Governance and Continuous Improvement

Senior management must oversee resilience strategies and ensure continuous improvement.

Example: Regular review of Sub-CBS processes and updating business continuity plans for deposit services.

The detailed decomposition of CBS-1 Deposit and Account Services into Sub-CBS components provides a structured foundation for operational resilience planning within Philippine Trust Company. By identifying each process step, the organisation gains visibility into operational dependencies, vulnerabilities, and recovery requirements.

Aligned with BSP Circular No. 1203 Series of 2024, this granular approach enables Philippine Trust Company to effectively map, test, and strengthen its resilience capabilities. Ultimately, it ensures that critical deposit services remain available, secure, and reliable—even in the face of severe disruptions—thereby safeguarding customer trust and financial stability.

PTC PH 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.