Banking Organization Chart & Structure
Bank Organizational Structure Outline & Definitions
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The purpose of Banking is to provide a stable platform on which to perform financial transactions. Banking stimulates the growth of business by generating confidence and predictability in a currency, and that growth in turn increases the demand for banking services. Commercial banks provide payment services, such as checking and credit card accounts, for customers. They earn money by lending customer deposits in various ways, including installment loans, such as mortgages and lines of credit. Investment banks enable business expansion by providing the liquidity that companies need to start or grow.
Common Banking job titles: Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Financial Officer (CFO)
Lines of Busines
Lines of Business (LOB) refers to specific products and services offered by the bank to both individual and commercial clients. Major LOBs typically including Mortgage Lending, Consumer Lending, Commercial Lending, Credit Cards, Investment Management and Investment Banking. Employees working within these front office areas are responsible for developing and pricing these products/services, generating new business and managing client relationships. LOBs are supported by back office staff members, who work to perform non-customer-facing tasks such as loan processing, transaction processing (deposits, withdrawals, etc.), fraud prevention and credit review.
Common Lines of Busines job titles: Loan Officer, Investment Specialist, Financial Advisor, Personal Banker
The Business Banking line of business encompasses products and services specifically designed for small and medium-sized businesses. This include many products/services that retail customers used - but they have been tailored to serve business - including checking accounts, credit cards, savings accounts and transfers. Business Banking customers typically expect specialized customer service and account maintenance-related support.
Common Business Banking job titles: Business Banker, Business Documentation Analyst, Commercial Banking Representative
The Commercial Lending Group is responsible for originating loans for businesses, corporations and other non-individual borrowers. Commercial loan officers and sales representatives work with borrowers to analyze working capital, set up lines of credit and configure other more complex financial solutions to meet the long-term goals of the business. Commercial loans can also be sourced from several borrowers (syndication) in cases where the loan amount and related risk is beyond what the lender is willing to assume. Common reasons for securing commercial loans include capital expenditures ('CAPEX'), equipment financing, real estate purchases, debt refinancing and business acquisitions.
Common Commercial Lending job titles: Commercial Loan Officer, Commercial Banker, Commercial Banking Associate, Commercial Lending Analyst
The Consumer Lending Group is responsible for originating consumer loans (not including mortgages). Borrower applications must be inspected and reviewed thoroughly in order to make sure that risk is managed properly. Consumer loan officers and sales representatives consult perspective borrowers on loan solutions and collect applications and related information. The Consumer Loan Operations function receives information from borrowers and loan officers and processes the loan (underwriting, closing, etc.) in accordance with the bank's standards. After a loan is closed, loan servicing and customer relationship managers work with borrowers to process loan payments, change loan information and answer any questions related to their loan. Consumer loans typically include auto loans, personal loans and student loans.
Common Consumer Lending job titles: Consumer Loan Officer, Personal Loan Consultant, Consumer Lending Sales Representative, Personal Banker
The Credit Cards line of business encompasses all products related to both retail and commercial credit cards. They develop, design, issue and service credit card-related products. In most cases, banks use a third-party to process and perform credit card transactions (VISA, American Express, Discover, MasterCard, etc.) - these companies act as a middle man between the buyer and seller. Banks generate revenue through issuing credit cards and collecting interest, monthly/yearly service fees and payment processing fees. In the United States, the Automated Clearing House (ACH) network enables all electronic financial transactions.
Common Credit Cards job titles: Processing Specialist, Credit Card Risk Analyst, Teller, Card Services Operations Advisor
The Investment Banking arm works with institutional clients to develop strategic advisory assignments (mergers and acquisitions), divestitures, corporate defense activities, risk management, restructurings and spin-offs, and debt and equity underwriting of public offerings and private placements (domestic and cross-border transactions), as well as derivative transactions related to these activities. Investment Banks also offer a sophisticated collection of investment services to large institutional clients - usually referred to as Prime Brokerage services. After moving up the ranks within an investment banking operation, top employees (typically senior vice presidents and managing directors) are responsible for managing relationships with key clients and seeking out new business opportunities for potential high-worth investors or partners.
Common Investment Banking job titles: Business Banker, Business Documentation Analyst, Commercial Banking Representative
Investment Management (also sometimes referred to as 'Private Banking,' 'Wealth Management' or 'Private Wealth Management') refers to a collection of services usually rendered to high-net-worth-individuals, families or businesses. Investment management typically encompasses the coordination of a suite of services including portfolio management, estate planning, financial advisory services, retail banking, retirement planning, legal resources and tax strategies. Large corporations may also be Investment Management customers ,but typically they would be serviced by the bank's Investment Banking group (i.e., Prime Brokerage, etc.).
Common Investment Management job titles: Wealth Advisor, Financial Advisor, Trust Officer, Wealth Management Associate, Private Banking Associate
The Merchant Services function offers business customers a secure (encrypted) channel through which to process credit and debit card payments. Banks allow businesses to deposit these payments directly into their bank accounts in a timely fashion and take a small processing fee out of each transaction. Other complementary products/services offered by the merchant services function include gift card/rewards program management, point-of-sale (POS) equipment purchasing, online/mobile payment systems, fraud monitoring and online sales analytics.
Common Merchant Services job titles: Merchant Services Sales Representative, Merchant Services Client Representative, Merchant Retention Specialist, Transaction Analyst
The Mortgage Lending Group is responsible for originating mortgage loans for retail (i.e., individuals or families) clients. Mortgage lending sales staff members work with borrowers to assess their eligibility and collect any personal information required to process the mortgage application (W-2 forms, tax returns, account statements, etc.). After the application is submitted, appraisals, credit reports and other inspections are performed so that the underwriting group can make a decision on the application (approve/deny/counter). If the mortgage application is approved by underwriting and closed, mortgage loan servicing and account managers work with borrowers to process mortgage payments, change account information and answer any questions related to their mortgage. Mortgage lending groups may also work with correspondent lenders to source applications and/or sell mortgages on the secondary market.
Common Mortgage Lending job titles: Mortgage Loan Officer, Mortgage Lender, Mortgage Loan Servicing Specialist, Mortgage Analyst, Underwriter
Online & Mobile Banking
The Online and Mobile Banking function develops and maintains infrastructure and applications that allow banking customers to perform electronic financial transactions (such as deposits, transfers, loan applications, bill payments). Every large banks (and most small to mid-size banks) offer a full suite of online and mobile banking applications for customers - most consumers expect to be able to perform simple banking transactions immediately and without human contact (i.e., without going to a branch or calling the customer service center). Security is of the utmost importance for Online and Mobile banking groups. Web-based attacks are common and the sensitive nature of banking account information demands strict, leading-edge electronic banking security practices.
Common Online & Mobile Banking job titles: Electronic Banking Specialist, Payment Operations Analyst, Electronic Fraud Detection Analyst/Specialist, Processing Specialist, Application Developer, Security Analyst
Treasury & Cash Management
The Treasury and Cash Management Group works with business customers to manage short-term investment strategy, cash flow and liquidity through a variety of treasury-related services, including controlled disbursements, automated clearing house (ACH) system setup and processing, lockbox payment processing, accounts receivable management (account collections and reconciliations), investment 'sweeps,' risk management and payroll services.
Common Treasury & Cash Management job titles: Cash Management Analyst/Specialist, Treasury Analyst, Business Banking Associate, Business Banker
Retail Branch Operations
The Retail Branch Operations function is responsible for managing the performance of a bank's retail branch network. They manage high-frequency tasks such as platform operations, loan openings, account maintenance and account terminations. Individual and business customers can perform financial transactions and maintain relationships with personal bankers at brick and mortar retail branch locations. Typically, the majority of a bank's employees reside within the retail branch network, making it a prime candidate for savings through process improvement and reorganization.
Common Retail Branch Operations job titles: Retail Branch Manager, Manager of Branch Operations, Regional Retail Banking Director/Manager, Bank Teller, Personal Banker
The Platform Operations function is responsible for performing tasks at retail branch locations that cannot performed by bank tellers. Such activities and services include loan origination, opening, maintaining and closing any account type (checking, savings, business, etc.), applying for (and managing) lines of credit (commercial and consumer), applying for (and managing) credit cards, and providing investment advice.
Common Platform Operations job titles: Personal Banker, Banker, Consumer Banker, Banking Associate
Retail Branch Management
The Retail Branch Management function is responsible for the oversight and management of all retail bank branch office operations, whether internal or customer-focused. Such responsibilities include hiring employees, managing teller functions, monitoring personal banker performance levels, approving loans and lines of credit, marketing the branch, building relationships within the surrounding community and assisting customers with account problems that cannot be solved by tellers or personal bankers.
Common Retail Branch Management job titles: Branch Manager, Branch Operations Manager, Retail Banking Manager, Retail District Manager
Teller tasks are performed in-person at a retail branch location by teller line employees, or bank tellers, and includes basic banking transactions such as deposits, check cashing, withdrawals, loan payments, money orders and foreign currency exchanges. Teller transactions are the most high-frequency activity type at retail branch network locations.
Common Teller Tasks job titles: Teller, Retail Banker, Bank Teller, Banking Representative
Back Office Operations
Banking Back Office Operations refers to a set of essential non-customer-facing administrative and support services. The Back Office is responsible for managing several activities such as credit operations, loan servicing, deposit operations, item processing, trade processing, collections, cash vault operations and wire transfers. Back Office staff members support both the banks's retail branch network and individual lines of business, including Mortgage Lending, Commercial Lending, Merchant Services and Investment Management.
Common Back Office Operations job titles: Operations Specialist/Analyst, Customer Service Representative, Banking Service Representative, Deposit Operations Associate
The Credit Operations function is responsible for reviewing all credit-related relationships (consumer loans, credit cards, mortgages, commercial loans, construction loans, etc.), establishing controls to mitigate the bank's risk and monitoring the bank's portfolio of loans (and other credit-related products). Credit Operations staff members support loan underwriters, originators and processors in making credit decisions, providing tools and documentation to assist in the review of loan documents and documentation. They also put in place controls to ensure that the proper documentation is collected, reviewed and stored in the company's loan servicing system for future review and maintenance (i.e., quality control). After the closure of a loan, Credit Operations staff members will review the bank's loan portfolio to determine credit risk and produce reports to management detailing portfolio performance and health - many times, these reports determine future underwriting requirements and guidelines.
Common Credit Operations job titles: Credit Analyst, Credit Compliance Specialist, Credit Specialist, Credit Operations Specialist, Loan Documentation Specialist
Fraud Prevention & Management
The Fraud Prevention & Management Group is responsible for ensuring all organizations within the bank are abiding by all standards, rules and regulations set by industry governing bodies, providing support and advice for business units throughout the company. Common tasks performed by the banking Fraud Prevention & Management Group include know your customer (KYC) analysis, anti-money laundering (AML) activities and financial crime monitoring/investigation.
Common Fraud Prevention & Management job titles: Compliance Officer, Compliance Specialist/Analyst, Fraud Prevention Specialist
The Direct Banking Operations function is responsible for managing transactions and customer interactions that occur outside of the bank's retail branch network - most commonly through a customer contact center. Direct Banking can also encompass any transactions that occur through the online or mobile channels. Due to the lower operating costs for banks and the increase in the use of mobile, internet-enabled devices, the direct banking channel has taken on increased importance in recent years.
Common Direct Banking job titles: Customer Service Representative, Call Center Agent, Account Support Specialist
The Loan Operations function is responsible for all tasks between the submission of a loan application and the final funding (pending approval) of a loan. The steps between include application processing, underwriting (approval or denial of loan application), closing and post-closing. The main purpose of this step is to evaluate the prospective borrower's credit-worthiness (i.e., risk level) to determine if the bank should lend to them, and if so, what the terms of the loan should be. After the loan has been processed, approved and funded, the borrowers work with the loan servicing function to process payments, update account information and answer any questions related to the terms of the mortgage. This group may be split up based on loan type - mortgages, consumer loans (auto, personal, home equity, etc.) and commercial loans.
Common Loan Operations job titles: Loan Originator, Loan Operations Specialist, Loan Closing Specialist, Loan Processor, Underwriter, Loan Support Specialist
The Loan Servicing Group deals with all communication between the borrower and the lender after the approval and initial loan fund disbursal (after closing). They collect payments, help the borrower with repayment plans or loan consolidation and assist with other customer service-related tasks (address change, billing questions, payment statements, etc.) during the life of a loan. Mortgage servicers are compensated with servicing fees, generally a small percentage (less than 1%) of the remaining principal balance on the loan each month. When loans move into default, Loan Servicing employees may work with the borrower to adjust payment schedules and avoid foreclosure or further action.
Common Loan Servicing job titles: Mortgage Servicing Specialist, Consumer Loan Servicing Specialist, Commercial Loan Administrator, Escrow Loan Servicing Analyst
Trade Operations & Support
The Trade Operations and Support function is responsible for the middle and back office processes related to the exchange of securities and other financial products (commodities, derivatives, fixed income, FX, etc.). Tasks commonly carried out within the Trade Operations and Support Group include trade confirmation, trade verification, trade matching, settlements, collateral management and reporting. In some cases, this department may also have sub-groups that are responsible for risk mitigation, liquidity management, technology support and client services (customer service). This group typically supports the Investment Banking, Treasury Services and Investment Management lines of business.
Common Trade Operations & Support job titles: Trade Compliance Analyst, Trade Support Analyst, Transaction Capture Analyst, Securities Operations Specialist
Transaction Processing & Support
The Transaction Processing & Support function is responsible for any back office processing and documentation required for transactions and actions performed by retail and institutional banking customers through various lines of business, including credit/debit card purchases or payments, wire transfers, deposits, withdrawals, checks, online bill payments, transfers, etc., and account openings/closings. Back office staff members ensure the accurate and timely processing of these transactions and also perform adjustments and reconciliations as needed to correct errors or fulfill customer requests. Transaction Processing & Support team members are typically closely tied to the bank's customer service and call center operations.
Common Transaction Processing & Support job titles: Cash & Treasury Analyst, Cash Management Treasury Analyst, Corporate Treasury Analyst, Treasury Analyst, Payments Analyst, Credit Analyst