BDO Unibank Inc. SWOT & PESTLE Analysis

Strength

1. It is the largest bank in Philippines with widespread operations, even in international markets: In terms of assets and operations, it is the largest bank of Philippines, with a wide range of loan, deposits and a wide array of Insurance schemes suited for the citizens of Philippines. It has over 1100 operating branches 3600 ATMs. In addition to this they have full-service branches in Hong Kong and in 25 other countries in Asia, Europe, North America, and Middle East. Through collaboration with European entities, BDO enables the people of Philippines to invest in European equities thereby diversifying their investment portfolio. In addition to this it has been recognized as the strongest bank in Philippines, by a Singapore publication called the Asian Banker, with a consistently healthy balance sheet.

2. Long standing partnership with Munich Re Automation solutions (MRAS) helps in business operations and expansion through automation: MRAS is an analytics and automation solution provider, it helps in underwriting of insurance and taking quick decision with respect to loan grant and processing, providing customer insights; overall, it makes the process more efficient, customer focused and lowers the cost of operations for the loan division. Hence this partnership helps in driving the business of BDO Unibank and provides it a competitive edge. In October 2019, MRAS announced that it is going to extend its partnership with BDO Unibank to meet the revolutionary underwriting and analytics solutions which are rapidly expanding in the industry. The partnership will focus on implementing automation and advanced analytic technologies as it enables new product innovations and customer insights. Moreover, these technologies provide great efficiency, transparency, and budget friendly services to customers, advisors and underwriters.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Climate change directly impacts the socio-economic sector of the country: In the archipelagic nation of Philippines of which agriculture and fisheries is the major contributor to the economy. Climate change can reduce the crop yield and impacts the fisheries of the nation. Further it is prone to typhoon, earthquakes, and other natural calamities. Climate change can cause migration of communities towards a few safer regions within the country. All of this can damage the growth of the country and lead to economic decline if the environmental degradation is left unchecked. A consistently declining economy can steal the potential of growth of Philippines. In the case of BDO Unibank agricultural losses coupled with unemployment and natural disasters can disrupt the growth of banking sector and business in Philippines in the long run.

2. Green bonds issued by local banks tackle environmental damage: Climate change poses a direct threat to Philippine and its economy. To counter this, the local banks issue green bonds, which are used to raise finances for green projects such as renewable energy projects and to achieve sustainability goals. These bonds can help reverse the impact of climate change in the country. Various local banks have already issued such green bonds and BDO Unibank has already issued a bond of USD 150 million.