Banking · Bank Management & BPR
A large retail-focused bank with 1,500 branches using a 'Vertical Organized Model' faces a high Cost-to-Income Ratio of 65% (industry average: 48%). Branch staff handle high volumes of non-financial transactions despite 80% digital volume, Retail Loan Processing Centers (RLPCs) face a 40% rejection rate due to incomplete DSA documentation, and the Credit Card department operates as a separate IT silo from the Core Banking Solution (CBS). Which set of operational actions most effectively addresses these root causes?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Increase staff strength at branches to handle the manual workload better and shift from a vertical to a horizontal organizational model.
- 2Outsource the entire RLPC function to a third party to save on staff costs and increase loan processing fees to cover the high cost-to-income ratio.
- 3Implement 'Straight Through Processing (STP)' for non-financial transactions via AI chatbots, integrate the Credit Card IT system with the CBS for a unified customer view, and implement Digital KYC for pending refreshes.✓
- 4Shut down all digital channels to force customers back to branches to improve 'Relationship Banking' and terminate DSAs immediately.
Correct answer
Implement 'Straight Through Processing (STP)' for non-financial transactions via AI chatbots, integrate the Credit Card IT system with the CBS for a unified customer view, and implement Digital KYC for pending refreshes.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Bank Management & BPR MCQs →Want more practice questions on Bank Management & BPR?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Bank Management & BPR