Exam ICWIM Topic 1 Question 134 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 134
Topic #: 1
Which of these banks are likely to have relatively few legacy issues?

Suggested Answer: B Vote an answer

Challenger banks are newer, digital-first institutions that operate with modern technology, avoiding the legacy issues that traditional banks face.
* Why is Option B Correct?
* They lack outdated IT systems that traditional banks struggle to upgrade.
* They focus on digital banking services, reducing operational inefficiencies.
* Examples: Monzo, Starling Bank, Revolut.
* Why Not Other Options?
* A (Central bank) # Not a commercial bank; deals with monetary policy, not retail banking infrastructure.
* C (Online bank) # Some online banks are part of traditional banks, inheriting legacy issues.
* D (Retail bank) # Large banks have aging IT systems, regulatory burdens, and high costs.
# Reference: UK Financial Conduct Authority (FCA) - Challenger Banks Report, CISI Wealth & Investment Management.

by Paula at Aug 02, 2025, 08:12 AM

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