Tag: Decentralization

More Debate On Bank Organizational Structure

Bank Organizational Structure

We published an article on whether a centralized or decentralized banking model was best (HERE) last month that generated many comments both for and against. One such rebuttal, from a well-respected bank CEO of a $1B community bank, summed up the counter argument nicely. 

 

Centralized or Decentralized Bank Management?

Centralized or decentralized bank organizational structure

Once you hit about $500mm in total asset size, your bank should be asking what organizational architecture it wants – centralized or decentralized. A smart bank lays the ground work at $500mm, and then by $750mm can start to reap the benefits of design. By $3B, the bank should be fully leveraging the results of the decision. In banking, success has been had both ways. We can point to many banks that centralize management, credit, marketing and many other functions.

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