Banking ProfitAbility - The Banking Simulation

The Programme

Banking ProfitAbility is a board-based simulation of a bank, which shows the portfolio of deposits taken, as well as secured and unsecured loans given out. This engaging and challenging business simulation is for managers and staff at all levels of the banking sector. It creates a greater understanding of how the balance and spread of a portfolio, the level of expenses incurred and losses on loans all interact to produce profit or loss for a bank.

Who Should Attend

This programme is designed for professionals at all levels within a bank looking to develop a broader strategic understanding of the business.

The Objectives

Using a unique, board-based simulation, participants see the results of their decisions and learn the cause-and-effect relationships of a bank’s operations. For those in customer-facing positions, it demonstrates clearly the effect they can have on customer retention, and hence profitability. This hands-on learning experience gives participants the opportunity to learn the following :

a. Improved understanding of the relationships between service levels, customer retention and profitability (PBT, PAT)
b. Understand how banks compete for profitable customers
c. Knowledge of how interest rate spreads (NIM), volumes and costs (Cost-to-Income, CIR) have an impact on profitability
d. Understanding the bank’s own cash flow
e. Understanding concepts of capital (CET1), Return on Equity (ROE) and liquidity from a banking standpoint

The Banking Simulation

Six teams in groups of 3-4 participants will set the level of investment in back office systems and the number of employees, that determine the level of service they can provide to their customers. They set interest rates for deposits and secured and unsecured loans. Using a combination of these factors with marketing efforts, they compete for customers and build a portfolio of loans and deposits.

Bank Capital & Liquidity

Learn about bank capital, and a bank’s liquidity position - concepts that are central to understanding what banks do, the risks they take and how best those risks are mitigated.