A. Computerized Financial Projection Using the four methods 1.

The Arithmetic Straight Line Methods

2. The Geometric Straight Line Methods
3. The Statistical Straight Line Methods
4. The Statistical Parabolic Projection Methods

B. Internal Rate of Return

ENVIRONMENTAL
SCANNING of BANKING
OPERATIONS
POTENTIAL PROBLEMS AND
SENSITIVITY ANALYSIS FOR
DECISION MAKING
 POTENTI
AL
PROBLE Seriousness-
M H-M-L Causes Effect
Lack of Evaluation of the
Capacity of the Clients Can not cope up their obligations
1.) Increase of - Non performing Loans (NPL) - receivable will not be generated
Loans HIGH because of Pandemic or pay off obligations
Receivables
- Collection policy are not stable - working capital declines
- Staffs are slacking in their - Account Receivables Turnover
work duties takes long for the company to
collect their receivables
 Preventive Contingent Responsible Time Frame
Measures Action Person
- Shorten the collection period; - Collection
- Change collection policy demand letter manager Immediately
- Strict follow up collection - Offer discounts for early - Marketing
schedule; demand letter payments department
- Creating an accounts receivable - Move fast on past due
(A/R) aging report receivables
 POTENTIAL
PROBLEM Seriousness Causes Effect
Lack of monitoring of the
forecasted Revenue
- Hindering of Revenue
- low marketing strategy
2.)
Declining of HIGH
- Lack of Competency
Revenue - Lack of Accountability
- Misaligned of products and
- Promotions are not aligned
advertising strategies
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

- Train incompetent people - Re-assessment of staff / shuffle - Marketing

department
- Promote a better advertise - Coaching and monitoring for
ASAP
campaign advertise campaign - Sales department

- Research what is trending

 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
Greater incentives to lower
Number of sellers prices
3.) Deacreases an individual
Increasing companies market share and
Competition H share and shrink the available
Barriers to entry customer base.

product features

These new industry entrants are forcing many financial institutions to seek partnerships and/or
acquisition opportunities as a stop-gap measure; in fact, Goldman Sachs, themselves, recently
made headlines for heavily investing in FinTech. In order to maintain a competitive edge,
traditional banks and credit unions must learn from FinTechs, which owe their success to
providing a simplified and intuitive customer experience.
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

Find and then solve your

Provide great customer service
customers pain points
Marketing
Choose your competitive Immediatel
Define your brand department and
advantage y
sales department
Excite your customer
 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
Can increase the efficiency of
4.) The business isn't growing
CHANGING work process
BUSINESS Economic factors
H
MODEL
Societal reasons
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

Focus on more profitable Lower costs through operational

existing clients efficiency
Immediatel
Investing in equipment Upgrade technology software CEO and manager
y
Upgrade technology
Improve logistics
infrastructure
 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
Driving force for social
4.) Living standards
development
Rising
Expectation H Qualification

Personality type

Today’s consumer is smarter, savvier, and more informed than ever before and expects a high
degree of personalization and convenience out of their banking experience. Changing customer
demographics play a major role in these heightened expectations: With each new generation of
banking customer comes a more innate understanding of technology and, as a result, an
increased expectation of digitized experiences.
 Time
Preventive Contingent Responsible
Frame
Measures Action Person
Openly discussing possible
Don't make promises you can't
solutions to a problem with
keep
clients
Marketing Immediatel
Gain commitment Improve your response time department y
 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
Increases your customers
5.) Less price-sensitive lifetime value and boost your
Customers revenue
Retention H Reduce marketing costs Trust

Gain valuable feedback

Financial services customers expect personalized and meaningful experiences through simple
and intuitive interfaces on any device, anywhere, and at any time. Although customer experience
can be hard to quantify, customer turnover is tangible and customer loyalty is quickly becoming
an endangered concept. Customer loyalty is a product of rich client relationships that begin with
knowing the customer and their expectations, as well as implementing an ongoing client-centric
approach.
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

Offer fast delivery and easy

Don't just sell -- educate
returns
Communicate with your Immediatel
Leverage personalization Account managers
customers y
Collect feedback with customer
Stand for something
service
 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
6.) Crashes and system downtime Lack of knowledge
Legal and regulatory
Outdated Mobile Decreased productivity
H compliance risk
Experience
Increases costs

These days, every bank or credit union has its own branded mobile application — however, just because an
organization has a mobile banking strategy doesn’t mean that it’s being leveraged as effectively as possible. A
bank’s mobile experience needs to be fast, easy to use, fully featured (think live chat, voice-enabled digital
assistance, and the like), secure, and regularly updated in order to keep customers satisfied. Some banks have
even started to reimagine what a banking app could be by introducing mobile payment functionality that enables
customers to treat their smart phones like secure digital wallets and instantly transfer money to family
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

Use secure software development Run regular levels near ability

practices scan
Make sure to have working and Information Immediatel
Patch software regularly
tested backups of key system technology manager y
Practice secure network
Configure system security
engineering
 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
7.) Human error Financial loss
Physical teeth of a data
Security Operational downtime
H carrying device
Breaches
Malware Loss of sensitive data

Sustainable success in business requires insight, agility, rich client relationships, and continuous innovation.
Benchmarking effective practices throughout the industry can provide valuable insight, helping banks and credit
unions stay competitive. However, benchmarking alone only enables institutions to keep up with the pack — it
rarely leads to innovation. As the cliché goes, businesses must benchmark to survive, but innovate to thrive;
innovation is a key differentiator that separates the wheat from the chaff.
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

Identify sensitive data collected,

Assess risk
stored, transmitted or processes
Information
Identify users with access to Immediatel
Determine risk tolerance technology manager
sensitive data y
and data owner
Install antivirus software Set controls
 POTENTIAL
PROBLEM Seriousness Causes Effect
H-M-L
Increases your chances to react
Lack of solid innovation
to changes and discover new
7.) execution capability
opportunities
Continuous Lack of for knowledge,
H Lack of comprehensive
Innovations habit,myopia, basic values and
innovation strategy
self-defeating predictions
Lack of passionate, innovative
leaders or practitioners

With a series of high-profile breaches over the past few years, security is one of the leading banking
industry challenges, as well as a major concern for bank and credit union customers. Financial
institutions must invest in the latest technology-driven security measures to keep sensitive customer
safe, such as:
 Time
Preventive Contingent Responsible
Frame
Measures Action Person

Explore Focus

Planning/Strategy Immediatel
Select Assess
team y

Create and design

FISH BONE ANALYSIS
Potential Problem #1: Increase of Receivables(NPL)

1. MACHINE 2. MANPOWER 3.
MEASUREMENT

a. Slow computer a. Incompetent staff a. Did not track

and printers and crew progress

b. Not enough b. No efficiency to b. Lack of

computers for staff their work duties Accountability

a. Quality of the a. Poor collection a. Miscommunication

product is not good policy

b. Poor maintenance b. Inefficient use of 5’c

and usage b. Unclear instructions credit system

4. MATERIALS 5. METHOD 6. Environment

 Solutions:

1. Machine- Reconsider good quality computers and printers

2. Manpower- Offer trainings for staffs and have an re-assessment

3. Measurement- Create an Accounts Receivable Aging Report

 Solutions:

4. Materials- Purchase multipurpose equipment's for the company

5. Method- Research and Monitor what is the trend now

-Implement a stricter policy and existing policies should have an
evaluation
6. Moments- Efficient use of 5’c credit system
Potential Problem #2: Declining of Revenue
1. MACHINE 2. MANPOWER 3.
ENVIRONMENT

a. Low capacity a. Marketing staff a. Misaligned of products

promotion is not advertising strategies
effective
b. Insufficient to b. Poor communication to b. Customer’s
produce products each other feedback

a. Not good quality of a. Lack of attractive a. Lack of strategy

finished products promotions execution

b. Old supplies and b. Poor Marketing b. Unsatisfied customers

materials Strategies

4. MATERIALS 5. METHOD 6. MOMENTS

 Solutions:
1. Machine- Check the Capacity and Control of the equipment’s daily.
2. Manpower- Train Incompetent staffs and have a team building.
3. Environment- Promote a better advertise campaign. If so, emphasize
word of mouth promotions.
4. Materials- to improve the quality of the company’s product to satisfy
the client’s needs.
 Solutions:
5. Methods- Promote and established a competitive strategies using
SWOT analysis, or PESTLE

6. Moments- Coaching and Monitoring Advertise campaign.

Potential Problem #3: Increasing Computation
1. MACHINE 2. MANPOWER 3. METHOD

a. Power supply a. Lack of knowledge a. Wrong starting

points

b. Wrong method
b. Human errors used

a. Lack of equipments a. Pollution a.Distinguish exact and

uncertain numbers

b. Lack of backup plans

4. MATERIALS 5. 6.
 Solutions:

1. Machine- provide generators to use when power interruption occurs

2. Manpower- Hire a personnel that is knowledgeable enough.

3. Method- know where you should start.

4. Materials- provide complete equipment to produce correct computation.

 Solutions:
5. Environment - reduce waste and practice proper waste disposal
6. Measurement- always have a backup plan wether the first plan works or
not.
Potential Problem #4: Changing Business Model
1. MACHINE 2. MANPOWER 3. MONEY

a. Increases the expenses

a. New machineries needed a. Emplyees than jas
specialized skills and b. Budget for new
knowledge of the new machineries
b. Low capacity business c.budget for materials needed

a. Looking for new a. inflation

supplier a. Budget rules

b. Trust and risk

4. MATERIALS 5. 6. METHODS
 Solutions:
1. Machine- choose high quality machines to have one time purchase

2. Manpower- higher capable employees for the new business

3. Money- spend wisely

4. Materials- use high-quality materials that are budget friendly.

 Solutions:
5. Environment- review economic condition of the country

6. Methods- making budget, as much as possible buy it bulky.