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

CBS-1 Retail Deposit & Account Services

For Security Bank Corporation, Retail Deposit and Account Services (CBS-1) represent one of the most fundamental and customer-critical business services within its overall banking operations.

These services underpin the daily financial activities of individuals and businesses, enabling customers to deposit funds, access liquidity, perform transactions, and maintain financial relationships with the bank across both physical and digital channels.

In the context of operational resilience, CBS-1 is not viewed merely as a product offering, but as an end-to-end service ecosystem comprising multiple interconnected processes, systems, and stakeholders.

Disruptions to any component within this ecosystem—whether in onboarding, transaction processing, or customer access—can have immediate and widespread implications on customers, regulatory compliance, and the stability of the financial system.

In line with the expectations of Bangko Sentral ng Pilipinas under BSP Circular No. 1203, financial institutions are required to identify, document, and continuously monitor their critical business services.

A key step in this process is the decomposition of high-level services into detailed business processes (Sub-CBS), which enables organisations to better understand service delivery, pinpoint vulnerabilities, and implement targeted resilience measures.

This chapter provides a structured breakdown of CBS-1 into its detailed Sub-CBS components, forming the foundation for subsequent operational resilience activities such as dependency mapping, impact tolerance setting, and scenario testing.

Purpose of the Chapter

The purpose of this chapter is to provide a clear and structured decomposition of CBS-1 Retail Deposit and Account Services into its detailed processes (Sub-CBS), enabling stakeholders to gain a comprehensive understanding of how the service is delivered end-to-end within Security Bank Corporation.

By the end of this chapter, the reader is expected to:

• Understand the full lifecycle of retail deposit services, from customer onboarding to ongoing account servicing and recovery processes
• Identify the key operational components and process dependencies that support service delivery
• Recognise how each Sub-CBS contributes to the overall resilience of the critical business service
• Establish a baseline for subsequent operational resilience activities, including mapping dependencies, defining impact tolerances, and conducting scenario testing

This chapter is designed to pre-empt the reader by clarifying why process-level decomposition is essential, and how it supports both regulatory compliance and practical resilience implementation.

Table P1: Detailed Processes for CBS-1 

Alignment with BSP Circular No. 1203 (Operational Resilience Requirements)

Under Bangko Sentral ng Pilipinas guidelines, Philippine banks such as Security Bank Corporation are required to:

1. Identify Critical Business Services (Critical Operations)

• CBS-1 qualifies as a critical business service due to its impact on:
• Customer access to funds
• Financial system confidence
• Payment and liquidity continuity

2. Map Interdependencies and Resources

Each Sub-CBS must be mapped to:

• People: Branch staff, operations, compliance officers
• Technology: Core banking system, ATM switch, mobile banking platforms
• Third Parties: Payment networks, cloud providers, KYC utilities
• Processes: End-to-end service workflows

3. Set Impact Tolerances

Examples aligned to CBS-1:

• Maximum tolerable downtime for ATM withdrawals (e.g., < 2 hours)
• Maximum tolerable data loss (near-zero for account balances)
• Customer impact thresholds (e.g., % of customers unable to access funds)

4. Identify Severe but Plausible Scenarios

Relevant scenarios include:

• Core banking system outage
• Cyberattack affecting digital banking channels
• Data centre failure or telecommunications disruption
• Third-party service provider failure (e.g., ATM network)

5. Conduct Scenario Testing

Banks must:

• Test the ability to remain within impact tolerances
• Simulate end-to-end disruption of Sub-CBS processes
• Validate recovery strategies and communication protocols

6. Ensure Board and Senior Management Oversight

• Accountability for the resilience of CBS-1 lies with senior leadership
• Regular reporting and governance reviews are required

Key Takeaways

The decomposition of CBS-1 Retail Deposit and Account Services into detailed Sub-CBS enables Security Bank Corporation to operationalise resilience in a structured and regulatory-compliant manner.

By aligning each process with BSP Circular No. 1203, the bank can:

• Strengthen its ability to withstand disruptions
• Protect customer access to essential banking services
• Demonstrate regulatory compliance and resilience maturity

This structured breakdown serves as the foundation for subsequent stages, including dependency mapping, impact tolerance setting, and scenario testing within the Operational Resilience framework.

/

The detailed breakdown of CBS-1 Retail Deposit and Account Services into its constituent Sub-CBS processes provides a granular and actionable view of how Security Bank Corporation delivers one of its most critical services.

By moving beyond a high-level understanding to a process-level perspective, the organisation is better equipped to identify potential points of failure, assess operational dependencies, and prioritise resilience investments.

This structured decomposition is not an end in itself, but a critical enabler for operational resilience. It allows the bank to align its processes with regulatory expectations, particularly those outlined by the Bangko Sentral ng Pilipinas, while also embedding resilience into day-to-day operations.

Each Sub-CBS serves as a building block for further analysis, including dependency mapping, impact tolerance calibration, and the design of severe but plausible scenarios.

Ultimately, this chapter establishes a strong foundation for resilience-by-design, ensuring that Retail Deposit and Account Services can continue to operate within acceptable thresholds even during disruptions.

It reinforces the principle that operational resilience is achieved not only through policies and frameworks, but through a deep understanding of how services are actually delivered and sustained in practice.

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.