by UnionBank Human Resources Group
UnionBank’s Transaction Banking Services (TBS) Group launched a cost transformation initiative to optimize third-party operational spending without compromising service quality or client satisfaction. With operational expenses rising across messengerial and outsourced service provider (OSP) functions, the challenge was to identify efficiencies that would reduce costs while enhancing capability. This effort aligned with the Aboitiz Group’s Great Transformation—a strategic shift toward becoming a techglomerate by integrating technology and innovation across all business units.
The program was structured into two major workstreams:
- Messengerial Expense Rationalization under Expanded Check Collections (ECC)
- Conducted a full audit of 263,000 messengerial trips, revealing ₱10.7M in failed trip costs.
- Standardized failed trip codes across four service providers to improve data accuracy and accountability.
- Launched performance monitoring reports for clients and initiated six focused service reviews with high-failure clients.
- Partnered with vendors to optimize routing and remove recurring failed trip requests.
- OSP Rationalization across CheckWriter, CheckHouse, and Check Clearing Operations
- Reviewed OSP deployment and workflows across branches, identifying manual processes and inefficiencies.
- Developed a semi-automated Excel tool with macros and centralized digital repositories to streamline reporting.
- Implemented a phased rationalization plan, releasing eight OSPs through task redistribution and site consolidation.
- Centralized administrative tasks at Head Office and merged check releasing sites within Metro Manila for better coverage.
- The initiative delivered ₱3.8M in annual savings, proving that cost optimization can be a catalyst for capability building.
- Messengerial Rationalization: Reduced failed trips by ~3,000/month, saving ₱1.5M post-implementation and improving trip success rates from 63% to 73%. Vendor success performance rose by 9%, driven by improved coordination and accountability.
- OSP Rationalization: Achieved ₱2.3M in annual savings while maintaining seamless check releasing and client satisfaction.
This transformation demonstrated how UnionBank’s commitment to high-tech, high touch operations and high-performing talent—anchored in purpose and partnership— can turn cost into capability, and efficiency into enhanced customer value.
