An assessment of Philippine banks' remittance business processes

College

Gokongwei College of Engineering

Department/Unit

Industrial Engineering

Document Type

Archival Material/Manuscript

Publication Date

2007

Abstract

According to Bangko Sentral ng Pilipinas, official remittances reached a record US$12.8 Billion in 2006 and the 2007 target of US$14 Billion Remittances was achieved and even surpassed. These are cash remittances from overseas Filipino workers (OFW) coursed through the banking channel. The bulk of remittances continued to come from the USA (49%), Saudi Arabia (9%), Italy (4), Japan (4%), U.K. (4%), Hong Kong (3%), Singapore (3%) and the United Arab Emirates (2%). Remittances from OFWs together with foreign investments specifically from Business Process Outsourcing (BPO) industry helped the peso appreciate against the dollar. But this means that the OFW families will receive less amount of money in terms of pesos. With the US economic slowdown, there is a big possibility that the target remittances will not be achieved this year. With enormous impact in the Philippine economy, this research would like to assess, evaluate, analyze and recommend an efficient business process in handling this remittance transaction. With a streamline remittance process, the banks can lower down their charges in handling the said transaction thus increasing the amount of money received by the families to a manageable level. Further, this will negate possible impact of the US recession. The research intends to study four (4) Philippine Banks to represent the banking industry. Specifically, bank composition is as follows: three (3) local banks and one (1) government bank. The proponent will document and analyze each of the banks' processes using Six Sigma tools and will asses their application systems using Information Technology Structured Analysis tools. The final output is a streamlined remittance process that can be used as a benchmark by the banking industry. Further, the proponent may look into technologies available in the market that can be incorporated into the process.

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Disciplines

Engineering | Industrial Engineering | Operations Research, Systems Engineering and Industrial Engineering

Keywords

Banks and banking—Philippines; Financial services industry—Philippines

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