Bank organizational structures vary depending on the type of bank. Retail banks have separate functions, while institutional banks have highly segmented divisions. Investment banks have a multifaceted and complex structure, with a CEO, CFO, and board of directors. Front office operations generate profits, while back office personnel provide support. Retail banks have fewer channels, with a CEO, retail banking manager, and electronic transactions manager. Marketing operations may be included in customer service initiatives.
The organizational structure of a bank typically comprises an executive who is further supported by other senior members of staff. In a retail bank, the structure is typically separated from various functions, ranging from electronic banking services to customer service and managers of particular divisions. An institutional bank is often highly segmented, with senior executives leading each division.
Investment banks are often global and are among the largest financial institutions. The organizational structure of a bank in this financial services segment is therefore often multifaceted and complex. A chief executive officer (CEO) typically directs all of the bank’s operations, although there are other senior members, including a chief financial officer (CFO), and multiple chief executive officers who are appointed to support the CEO role. There is also a board of directors to influence the operational strategy of a bank and keep the interest of the shareholders in mind. Another set of divisions, including risk compliance, investment banking and trading, also contribute to the bank’s organizational structure.
The front office operations of an institutional bank, such as an investment bank, include work activities that require direct communication with customers. These functions could include asset management, financial securities trading or investment banking services. In these divisions, profits are generated from the sales activities performed by these investment professionals. The organizational structure of a bank can extend to central office services. In this segment, professionals oversee risk management procedures and ensure that a financial institution’s practice remains compliant with regulatory standards.
Back office personnel are another organizational segment of an institutional bank. The professionals in this section offer support to the front-office staff. These people may be involved in risk management but also perform the functions that keep a bank’s internal operations running smoothly, such as accounting and personnel management.
In a retail banking environment, where individual account holders make deposits, the organizational structure of a bank has fewer channels. Like an investment bank, there is usually a CEO who is the head of the organizational structure. Other senior executives include a retail banking manager as well as a core branch network professional. A manager is also designated to oversee the electronic transactions that occur in a bank and this part of the operations could be grouped together as part of the information technology division. Marketing operations could be included as part of customer service initiatives.
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