THE BANKING CHALLENGE provides participants with the opportunity to manage a complete commercial bank making decisions covering funding, marketing, business development, staffing, quality and productivity improvement. And, in doing so understand the issues associated with running a complete bank, develop business acumen and their knowledge of finance.
This simulation is one of a range of business acumen simulations exploring the issues facing manufacturing, service, retail, distribution, banking, training, professional services and not-for-profit industries.
The simulation was developed for the Academy of Banking and Finance of the National Bank of Serbia as part of a project supported by the European Agency for Reconstruction. This support allows the simulation to be provided for you to run at low cost.
"It went exceedingly well. I had the assistance of one of our senior leaders with the expertise in all aspects of banking. I think that really made a difference as we could hear how our bank does things as we went along. All around a huge success. I hope to use this again next year."
Wells Fargo Bank Nov 2012
Walk through how this simulation might be used on your course.
As described later, the simulation covers the following key areas:
This business simulation is designed to be used by your trainers.
Learn more about running a business simulation yourself.
Approximately one day. (Although it can be run in an accelerated manner in just over half a day.) Its duration makes it suitable for use at the end of a training course, in stages over the course, as a one-day seminar or as a feature of a conference.
The simulation is designed for use by trainees, junior management, functional specialists and supervisors on banking appreciation courses. (If used in an accelerated manner, it is suitable for more senior management.)
After a short briefing, the training group is divided into between two and eight teams of between three and five your learners. These teams consider the problem facing them and then make decisions for a trading year. These decisions are fed into a microcomputer that simulates their effect. The results are returned to the teams who analyse them before making the next decision. This decision-making cycle is repeated for six to eight periods before the group recombines to discuss and compare results and justify their performance.
HARDWARE REQUIREMENTS: A single PC and printer for each group of two to eight teams (each of four or five participants).
The simulation uses an advanced simulator that supports tutoring, provides for ease of use and will run on all Windows operating systems from Windows 98 thorough Windows 8.
The simulation involves running a complete bank with decisions covering marketing (promotion, selling, sector and product focus), finance (funding sources and mix) and operations (operating staff, quality and productivity improvement). It should help your learners appreciate the issues associated with a operation of a complete bank.
BANKING OBJECTIVES & MEASURES
During the simulation, your learners will be concerned with creating a profitable, growing bank that survives. They will develop an understanding of the banks purpose, how their decisions influence this and how their objectives and measures interact.
Your learners without business experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the bank.
The simulation introduces your learners to financial fundamentals (Income Statement, Balance Sheet, cash flow and key ratios) and issues (Capital Adequacy and the reserves required by the National Bank).
CLIENT MANAGEMENT & POLICY
The bank serves two markets - retail (private) and corporate (business) - that it sells a range of deposit and loan products. In each market, your learners must ensure that they keep existing clients and attract new clients while maintaining good profitability and cash flow.
PRODUCT MIX & CONTRIBUTION
Although only selling into two sectors each of these involve four products: Demand Deposits, Long Term Deposits and Long Term Loans & Overdrafts. your learners must to decide how each of these contributes to the bank's profitability, growth and cash flow.
Your learners must consider how clients perceive the bank and how they will respond to interest rates, promotional activities, the competitors' actions and the financial and operational consequences while servicing both existing and new clients.
FORECASTING & CONTROL
With decisions covering staffing and funding, your learners must forecast operating needs and plan their staff and funding levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions and a changing economy.
BUSINESS IMPROVEMENT POLICY & IMPACT
With decisions about quality and productivity improvement, your learners must balance the cost of this with the benefits obtained in the marketplace, to staffing capabilities and costs.
With your learners working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints and develop their people skills.
Optionally, at the end of the simulation, teams can make a board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
This simulation is available for company training on a per course rental basis (rather than on a per participant basis) and for academic (university) and school use on a per course and an annual unlimited use basis. For you convenience you can pay in pounds sterling (£), US Dollars (£) or Euros.
Learn more about the rental process
|Academic (single course)||
|Academic (annual use)||
|School (single course)||
|School (annual license)||
The simulation can be used in several ways
AS A COURSE THEME
AS A BREAK
AS A STAND ALONE EVENT
AT A COMPANY CONFERENCE
ON DEVELOPMENT/ASSESSMENT CENTRES
IN GRADUATE RECRUITING
Documentation is provided in MS Word format and comprises:
The Participants' Manual that provides, for the your learners. a description of the simulation, a description of their task and information about the business that they are to manage.
The Background Notes describe the simulation for the trainer. (Please email to receive a copy of the Background Notes.)
The Decision Forms are the forms used to communicate a team's decisions to the trainer.
Briefing is a MS Power Point briefing explaining the simulation to the your learners. (You may find it useful if you review this before reading the briefs.)
This is provided to allow you to download an evaluation version of the simulation.
The table below shows the files to download, their description and size. You should copy them to a folder, a USB Flash Drive or even to floppy discs! Run setup.exe. The program will then install.
Note: When downloading the setup.lst file you must right click and then select Save As. (If you left click the file will open - this is a feature of Windows XP, Vista, Windows 7 and Windows 8.)
If, instead of installing from the Web, you are installing from the CD-ROM version of this resource you can install directly by clicking setup.exe and opening the file.
|setup.exe||Installation Program||137 Kbytes|
|Setup.lst||Installation Data||5 Kbytes|
|Banker1.cab||Simulator Files (1)||1,283 Kbytes|
|Banker2.cab||Simulator Files (2)||1008 Kbytes|
Most recent update: 11/09/13
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