JAIIB RBWM Paper-4 Module-A Unit 2: Retail Banking Role within the Bank Operations

10/02/2023

Table of Contents

JAIIB Paper 4 (RBWM) Module A Unit 2: Retail Banking Role within the Bank Operations (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for JAIIB Exam 2023. Following the format of the current exam, JAIIB 2023 will have now four papers. The JAIIB Paper 4 (Retail Banking and Wealth Management) includes an important topic called “Retail Banking Role within the Bank Operations”. Every candidate who are appearing for the JAIIB Certification Examination 2023 must understand each unit included in the syllabus. In this article, we are going to cover all the necessary details of JAIIB Paper 4 (RBWM) Module 1 Retail banking Unit 2: Retail Banking Role within the Bank Operations Aspirants must go through this article to better understand the topic, Retail Banking Role within the Bank Operations and practice using our Online Mock Test Series to strengthen their knowledge of Banker Customer Relationship. Unit 2: Retail Banking Role within the Bank Operations

About

The business models for retail banking show interesting revelations across types of banks. The models adopted by banks vary among the public sector, private sector and foreign banks. The main approaches are as follows:

Strategic Business Unit (SBU) Approach,
Departmental Approach,
Integrated Approach (part of the overall business plan).

Strategic Business Unit (SBU)

SBU approach aims at dividing the business on lines of Strategic Business Units (SBUs). SBUs are autonomous divisions, small enough to be flexible and large enough to exercise control over most of the factors affecting its long-term performance. SBUs can be defined as profit centres which focus on product offering and market segment. An SBU can be a business unit of a large corporation or it can be a business in itself.

Departmental Approach

In Departmental Approach, rather than dividing on strategic or businesslines, an organisation can also be divided on the basis of functions, various teams perform. The departmental approach is a specialised functional approach within an organisation. This approach segregates the functions of the organisation into departments such as accounting, marketing, finance, planning, etc.
Generally, every department has its manager and chain of command. Public Sector Banks in India generally have adopted the Departmental Approach as their retail banking business model. It indicates that the approach is more a general one with retail banking as one of the business models and not a focused business model.

The Integrated Approach

The Integrated Approach is usually adopted by smaller businesses. It combines allsocio economic aspects and adopts a cohesive approach to tackle problems of the business. It is assumed that having a unified business would reduce risk and increase profitability through scale rather than having separate entities for each business line.
If we go further deep into the models of retail banking followed by banks with regard to products, processes, delivery channels, technology, etc.,

Business Model

Banks generally structure their retail banking models mainly on a positioning platform and to be the best/top three among the peer group players or across players. Strategies are based on the positioning objectives and vary from bank to bank depending on the importance attached to the business model.
Among the public sector banks, some banks aim for a place among the top three retail players across banks including peer group banks while some other public sector aim for a space in the top three among the peer group. But the strategy adopted by these banks was a part of the overall strategy based on the business mix. projections and corporate objectives of the bank.

Module A Unit 2 Retail Banking Role within the Bank Operations PDF