The organization of para banking and financial services activities by a bank will depend on the specific services offered and the size of the bank. Here are some general guidelines on how a bank may organize its para banking and financial services activities:
- Separate division: The bank may set up a separate division to handle para banking and financial services activities. This division may have its own team of experts and may operate with a different set of policies and procedures compared to the core banking division.
- Partnerships: The bank may partner with other financial service providers to offer para banking services. For example, the bank may partner with an insurance company to offer insurance products to its customers.
- Outsourcing: The bank may outsource certain para banking and financial services activities to third-party providers. For example, the bank may outsource its wealth management services to a specialized firm.
- Integration: The bank may integrate para banking and financial services activities with its core banking operations. For example, the bank may offer credit cards and debit cards to its customers, which are linked to their bank accounts.
- Customer segmentation: The bank may segment its customers based on their needs and offer different para banking and financial services to each segment. For example, the bank may offer wealth management services only to high net worth individuals.
- Training and development: The bank may provide training and development programs to its employees to help them develop the necessary skills and knowledge to offer para banking and financial services.
- Regulatory compliance: The bank must comply with all relevant regulations and guidelines while offering para banking and financial services. The bank must ensure that its activities are transparent, fair, and in the best interests of its customers.
In conclusion, the organization of para banking and financial services activities by a bank will depend on the specific services offered and the size of the bank. The bank may set up a separate division, partner with other financial service providers, outsource certain activities, integrate services with core banking operations, segment customers based on their needs, provide training and development, and comply with relevant regulations and guidelines.