II.

INTRODUCTION

Security serves everyone a comfort or feeling of no doubt, this makes individual trusting a
service or device in dealing with different transactions that mostly involves cost. Even the way people
save their incomes and money, the banking system is a common way to a person or family. Although
today’s technology offers a wide variety of services that make convenience in every transaction, not all
people adopt what technology could offer. The Philippines has a comprehensive banking
system encompassing various types of banks, from large universal banks to small rural banks and even
non-banks. The banking system in the country serves millions of Filipinos and even in international
transactions. Most banking transactions were made through bank tellers and on the other hand an online
transaction by the Internet of Thing (IOT) that made every transaction a comfort and ease to every
customer. The digital transaction field is getting more and more crowded, when deciding which digital
payment options will adopt consider what your needs are and then pick the service that suits those needs
[2].
On June 7 and 8 the year 2017, as much as Php 46 million reflected in some BPI accounts
caused of the technical glitch. Most of the customers affected were merchants, small businesses, but
express willingness and arrangement to settle every glitch of bank amount. The case of BPI glitch became
a big issue that the government made the investigation to correct the negative impact of the banking
system in the Philippines. This case study will look the other possible causes of glitch and intent to
provide possible sets of solution that will provide a better banking system in the country.

III. Background of the study

The BPI founded in 1851 and operates for almost 165 years ago, the oldest bank in the
Philippines that still in operation and the third largest bank in term of assets. The company has
acknowledge as a leading provider of financial services in the Philippines and was owned by Ayala
Corporation. Through the year, BPI strove to deliver the highest standards of convenience banking
through the ingenuity of technology and creative management. The bank is the first to issue Debit card,
the introduction of cashless shopping with the express teller card, the establishment of banking kiosks, the
express banking centers, the launching of telephone banking with the express phone, and the use of call
center. Among the services that they are offer to the customers includes: insurance, banking, lending,
asset management, leasing, brokerage and distribution, foreign exchange and corporate and investment
banking. The wide range of financial services to their customers made its operation and establish over 800
branches, 3000 ATMs both in the Philippines, Hongkong and Europe.
Originally known as El Blanco Espanol Filipino de Isabel II, its mission is “We nurture every
Filipino’s future with a trusted approach to managing money and innovation that makes life easy every
day”. And its vision is “Building a better Philippines. BPI having a flexible systems and well-trained
employees they’ve surpassed all obstacles and continuously improving not only the systems but also their
people through training and development they undergone.

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IV. Statement of the problem

There are many banks aside from BPI in the country that operates well, The general problem of the study
is: How may Bank of the Philippine Islands glitch that caused mistakenly withdrawal of million pesos by
the depositor” be examined and analysed the causes of the problem to address the best possible solution in
the Philippine banking system.

Specifically, the study sought answers to the following questions:

1. What are the common system practices in the Philippine banking system that lacks security?
2. What changes could be developed to avoid possible future glitches in the Philippine banking
system?
3. What is the acceptable level of development to sustain a high level of security in the Philippine
banking system?
4. What improvement is necessary to gain back the trust of the clients and get back on the top of
their game?

V. Objectives of the study

1. While waiting for clients to forget the problem, fix the internal issue that caused the
internal glitch.
You can do this even if the news are keeping an eye on BPI. Here you can double check
everything and fix it one by one.

2. Improve services so that you can gain back the trust of your clients.
By doing this many people will be interested in BPI service. Many clients will trust the BPI again
because of their new improve actions and services on improving customer relationship.

3. Improve internal system errors.

To kill the issue and make our clients and future clients forget what happened on the system
glitch. Improve internal system errors. Mobile Banking must be easier and user friendly.

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VI. Proposed alternative solution

1. Proper communication
Properly communicating the problem to their subordinates through a protocol or
memorandums so that they can also do their share in protecting and helping BPI. It is not
only the manager who will adjust for the employees, but the employees also. They have to
trust their equipped employees to do their part.

2. Improve internal system

Improve the IT employees and make sure they double check everything in their system so
that there will be no more glitches on their system. This can help the company prevent or
reduce fraud and theft within their organization and eliminate threats to the organization.

3. Gain back loss money and trust.

The issues can be easily forgotten, but the trust is hard to establish again. How the BPI
management giving the employees and their clients importance reflects on their position.
Focus on how to gain back the trust of their Clients and improve the services. BPI should not
only focus on improving its internal problem, but also focus on how to gain back the trust and
interest of their customers.

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Criteria on addressing the problem

Banking security and system

Network system and security

Level of banking security

VII. Best Alternative solution

Changes could be developed to avoid possible future glitches in the Philippine banking system

By adapting theories of continuous success dealing with great innovation could adapt to avoid
possible future glitches in banking systems. Banking system uses electronics and programs that serve
clients, this system comprises theories in DMAIC and DMADV. In this methodology whether
innovation requires updates and control of update or the other way is required re-engineering process
that takes time to implement but a thorough study implicates. In this way, the possible future glitch
could be avoided and growth could achieve.

The common system practices in the Philippine banking system that lacks security
Indeed that there is no perfect technology that no need maintenance to operate, reliability is
common issue in dealing with new technology that will be efficient and effective in its operation. The most
common system practices in the Philippine were: (1) adapting technology with lower quality and cost, (2)
not keen on aftersales support upon the purchase of technology, (3) lacked of backup system that
automatically replace upon occurence of errors, and (4) lacked of trained professional to support the
operations.

The acceptable level of improvement to sustain a high level of security in the Philippine banking
system
The level of securities in system requires equipment’s and advance devices, improvement involve
costing but it deals for long-term of convenient operation in a way the services the company offered satisfy
majority of clients and trust in return/loyalty to the company. The gauge of measure how satisfy customers
to your services will show long term engagement and this bring success to your institution.

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VIII. Conclusion

In view of findings, the following conclusions were established:

1. The study aims to provide an thorough analysis on errors that led to banking glitch.

2. The study distinguished continuous success will give the company assurance of trust by
customers by adapting great innovation and the use of right methodology in engineering
management.

IX. Recommendation
Based from the results and conclusion of the study, the following recommendations were
drawn:

1. Provide a thorough technical training for professionals.

2. Study the pros and cons of innovation and appropriate techniques.
3. Assures quality devices/technologies in achieving growth.
4. Provide maintenance and service to those devices.

X. REFERENCES:

https://newsinfo.inquirer.net/907709/p46-m-accidentally-withdrawn-during-bpi-glitch-bank-
execs-say

https://www.bworldonline.com/bsp-assessing-bpi-glitch/

https://www.philstar.com/business/2018/02/07/1785234/bpi-evades-fine-over-data-glitch

https://www.rappler.com/business/172406-bpi-customers-frustrated-service-concerns-glitch

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XI. EXHIBITS

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