Retail Banking

Retail Banking Simulation

Learn about the complexities of banking with this fascinating business simulation. Develop a retail bank business, choosing between high growth and balanced risk, netting deposit and credit products, and developing high quality banking services for your customers.

Just how does a bank deal with conflicting pressures - from clients, competitors and the central banks? How will the central bank discount window affect your business strategy?

What is core capital, and how do you manage it?

You will take over and start up a new retail bank – your objective: to maximize your bank company’s market value over 5 years, and report back to stockholders. You can launch a wide range of credit and deposit products and services, and will need to balance prices and cash flow to succeed in a dynamic and competitive marketplace.

You will be able to access central bank funds via the discount window, as well as interbank lending sources, subject to variable lending rates.

You will need to carefully manage your business to achieve target Core Capital ratios in line with the latest Basel III regulations coming into force.

Learning points in this simulation

  • Treasury Management and its importance in managing bank operations.
  • Banking Market Segmentation, and Banking Portfolio Management
  • Business Performance Metrics of a Bank
  • Asset Risk Management and Strategic Marketing in Banking. Relationships between Assets (Cash, Long term assets, Risk assets, Non risk assets) and Liabilities (Discount Window, Interbank debt, Client deposits and Shareholders’ Equity)
  • Technical measures such controlling Loan and Deposit Volumes, Loan & Deposit Volumes/Account, Investment/Employee, Customer Acquisition Cost, Credit Default Risk, Risk Assets, Refinancing cost and Spread, Core Capital Quota, Leverage Factors, Net Interest Margin.
  • Managing bank marketing spend for client acquisition, portfolio capacity expansion or reduction, staffing, salary and training spend to optimize productivity
  • Economics – Dynamic Supply and Demand, Cost ratios and cost curves, Economies of Scale and Scope, MEPS, Experience and Cost curves,
  • Accounting – Income Statements /P&L statements, Balance Sheets, Cash Flow Statements, Corporate Performance Ratios, Budgeting and Planning, Cost/Income ratio, Base Interest Rate, Asset Risk and Collateral valuation, Credit Default Rate:, ROI, ROS, ROCE, EBITDA and other profitability ratios.
  • Team Building – working with other teams in this simulations builds understanding of team dynamics and collaboration, as well as self-knowledge and self-awareness

How is this simulation used ?

  • Suitable for all levels of management education, from new undergraduate programs in financial services marketing at universities or colleges, to more complex management development programs where banking market trends and strategies are being discussed.
  • In Corporate Management Training programs in the Financial Services sector across the world, where bank marketing, inter-banking relations and the Basel III regulatory framework present key management issues.
  • In executive development programs, and in university classes:
  • To build confidence in introductory programs aimed at young manager / new hires
  • For specific seminar-long classes in many subjects, dealing with all aspects of business, or a specialized subject program. A focus on concepts related to achieving long term financial returns in financial services businesses are key will get the best out of this simulation (write to us for suggested teaching plans)
  • In competitive team-building events, such as a special prize event, a motivational tournament between different departments, offices or campuses. An unlimited number of participants are possible.


 

The Single Player version, where you can log on 24/7 from anywhere in the world, and compete against our pre-programmed virtual competitors. the Single User version is used for:

  • Personal, private study
  • Pre-course or post course assignments in business courses
  • Team based projects
  • Compete against our pre-programmed players

What's in our Single User Package:
  • 2 complete simulation runs, running to your schedule (subject to time limit)
  • Free User Guide for this simulation, with information on:
  • Complete Operating Instructions for this simulation
  • Financial and Business Glossary with common terms and definitions
  • Discussions about the economic, financial and marketing theories which are embedded in our simulation models

The MMultiPlayer version, where a number of teams or individuals compete in real time against each other, for a predefined period, with the event controlled by an instructor. Normally used for :

  • Management Training Seminars in companies
  • Individual Simulation-based lectures in colleges
  • Complete semester-long programs in colleges
  • Inter-office or inter-campus competitions and tournaments

What's in our Multiplayer Package:
  • MultiPlayer simulation access, with 5 to 50 user connections, and the ability to run a multi user/team simulation event using this model.
  • Access to our proprietary Learning Center system, including management features - start, run, stop the simulation event, review scores, view individual or team performances.
  • Free instructor briefing slides, including an introduction and sign-on instructions, theoretical concepts, operating instructions
  • Free User Guide for this simulation, with information on:
  • Complete Operating Instructions for this simulation
  • Financial and Business Glossary with common terms and definitions
  • Discussions about the economic, financial and marketing theories which are embedded in our simulation models
 

Click to go to InstructorZone

 

We are currently not able to provide individual users with access to our simulations, or deliver smaller scale simulation exercises for schools on an economic basis.

IndustryMaasters supplies corporations, large training companies and business schools across the world with world-beating business simulations to build leadership and management capabilities.