Banking · Bank Organizational Structure
A public sector bank creates a dedicated 'Elite Banking Division' with separate offices and direct reporting to a National Head of Wealth Management, while retaining the main bank's core banking backend. What organizational model has been adopted, and what is the primary risk associated with this transition?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Predominantly Horizontal Model; Risk of slow decision-making due to centralized control.
- 2Outsourced Model; Risk of loss of customer data and brand dilution.
- 3Vertical Model; Risk of 'Organizational Silos' and conflict with the existing branch network.✓
- 4Horizontal Model; Risk of high operational costs and lack of specialized service.
Correct answer
Vertical Model; Risk of 'Organizational Silos' and conflict with the existing branch network.
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