Another engaging idea from

Managing DirectorJoseph A. DiVanna ( joe.divanna@marisstrategies.com)

Senior ResearcherDr Jay C.D. Jung (c.d.jay@marisstrategies.com)

Maris Strategies Ltd.Suite 4123 King StreetCambridge, CB1 1AHUnited Kingdom

©2016 Maris Stategies Ltd. All rights reserved. The Ulitimate Bank Challenge is protected under UK trademark

Core Banking Strategy

...against the clock.

Hold on to your seats.

INTEGRATED INTO EXECUTIVE EDUCATION:

Working in concert with corporate executive education providers, the simulator has been incorporated into multiday executive learning programmes as a mechanism to apply theoretical knowledge. In an executive education programme, participants will learn how to create action-based strategies and establish key-performance indicators in new ways. The simulator provides a means to experiment with various strategies to assess the impact on a bank during implementation. Participants also learn how to assess and prioritize the impact of emerging global trends on their own institution. Developing a relationship and negotiating with regulators to resolve transactional problems or interpreting new regulations such as managing risk weighted capital are just a few of the challenges that are debriefed after the simulation is complete.

A LEARNING EXPERIENCE FOR MIDDLE LEVEL MANAGERS:

The simulator has been used as a single-day or multi-day event for middle level managers to experience the decision making process of the C-level executives. Formulating bank’s strategy, developing the plan, innovating new products, managing varying degrees of risks and striving for high levels of profitability to enable middle level managers to develop new skills. Middle level managers will need to capitalize on their existing knowledge of a bank to meet the challenges of ever-changing market conditions and regulators that alter the rules as the simulation progresses.

A BOOT-CAMP FOR RISING STARS:

Several financial institutions have used the simulator as a boot-camp to give rising stars at various levels a taste of being at the helm, running the ship. In this environment, participants have to develop a complete set of banking skills to navigate an increasing set of changing market conditions. Human resources departments have used the boot camp to accelerate the development of negotiating skills and strengthen financial acumen.

TEAM BUILDING:

Another application of the simulator is as a stand-alone team building activity which incorporates learning with fun-based competition. It brings together people from different parts of the organization to form teams that test their knowledge of how the bank works. The simulation encourages teams to capture the prize of the most assets and highest profitability – without breaking the rules.

How to use the learning experience?Banks have used the simulator to enhance the skills of senior executives, middle level managers and upgrade the understanding of how a bank operates to numerous people in the organization in FOUR distinct ways.

Licensingavailable

If your bank would like to add the simulator to its portfolio of learning and development interventions, please let us know.

The Ultimate Bank Challenge can be licensed and customised to align learning objectives that emphasize educational principles needed to advance your strategic goals.

Tel +44 1223 704 670

The advance of technology is changing the very nature of a bank’s value proposition to its customers. Technology gives us new capabilities we rarely think of and enables new forms of competition to enter our markets. A rarely considered perspective is how technology, over the past 50 years has transformed how people in the bank understand the working processes of the business units.

Most of what we do, the transactions we process, the accounts we maintain, the products we design and the regulations we follow have been to automated to some degree. The Ultimate Bank Challenge takes us back to the fundamentals of how a bank works with added dimensions and new thinking of how to manage risk-weighted capital to ensure capital adequacy, how to innovate new products to take advantage of market opportunities and how to negotiate with sometimes less than co-operative regulators.

What is the Ultimate Bank Challenge? What are the benefits?

The Ultimate Bank Challenge was developed to provide bank executives and managers with a learning experience that capitalizes on their existing knowledge of banking and introduces new thinking on strategy execution, risk management and operations in a fun, non-traditional environment. Designed by senior bankers, the simulation game enables participants to take on roles and execute activities that they would be unlikely to do in their normal job.

KEY BENEFITS:

n The simulator enables participants to gain a wider understanding of job roles and the challenges faced by peers, teams, line managers and senior managers. By taking participants out of their comfort zone, the time compression of the simulation demands creative thinking and effective communications;

n Used as a management learning experience the simulator narrows the gaps across typical ‘tribal factions’ between departments and operations by creating a dynamic banking environment where people come together as a team in an accelerated and professional manner; performing multiple activities to adopt thier personal and banks strategies;

n By exposing the participants to the fundamentals of how to run a successful bank (and encouraging them to compete for The Ultimate Bank) the simulation enables problem-solving and revisiting the mission and objectives to articulate them differently, or consider best steps to achieve them.

ADDITIONAL TAKEAWAYS:

The simulator is designed to sharpen existing skills and ensure that across the board senior bankers learn new concepts, exchange ideas and build new capabilities which are relevant for banks to from strategy to reality:

n Managing risk-weighted capital

n Improving negotiation skills and communications with regulators

n Product portfolio innovation

n Strategy planning, execution, evaluation and corrective action

n Conditional risks for customers, corporate and SME lending

n Balancing personal and team goals and ensuring achievement on both fronts

n Understanding cause and effect in an accelerated timescale

n Scenario development and role enactment

n Managing risk, reputation, brand and human capital

Who is the simulation for?

Bank Executives, Operations Management, Branch Managers, Rising Stars, and anyone with aspirations of running a bank in the future.

Years 2-5 you must:n Run your bankn Pay your employeesn Negotiate with regulatorsn Do deals for your clientsn Interact with other banksn Purchase assetsn Create Insurancen Structure productsn Negotiate loansn Achieve your personal goalsn Spy on other banksn Develop cunning M&A activity

The Simulation overview

HTRAB024 50K and 100K output.indd 1

22/11/2016 03:52

You must:n raise capital to start the bankn devise your strategyn develop your brandn assess your personal objectivesn negotiate with regulators

n Form your Bank and Strategy

RoundYear 2.

n Review strategyn Structure

Investment products

n Report to Central Bank

n Review strategyn Create

Insurance products

n Report to Central Bank

RoundYear 3.

n Review strategyn How to win?n Report to

Central Bank

RoundYear 4.

RoundYear 5.

RoundYear 1.

Part 3.

n Report to Central Bank

n Best bank wins

Review & Reportn Review your

financials and strategy - make adjustments

n Report to Central Bank

Goals:n Try and achieve

your personal goals: (secure housing, car etc.)

n Run your bankn Get fundsn Write loans

n Debrief and Results

Part 1.

Part 2. Run the simulation

Ask for a copy of the Simulation Handbook for full details of hosting an event.

1. Teams of 4 or 5 people are given cash to form a Bank

2. Individuals are given a customer avatar to represent during simulation as well as having to be a bank executive

4. Central Bank

Central Bank sets the rules, interest rates and provide a source of funds.

5. Market Regulator

Banks come to the Market to do deals.

6. Securities Administration

Banks can use the Securities Administration to issue shares (Funding source). Distributes Risk or Reward cards, which simulate market events.

00:16:457. Each bank must conduct thier business based on thier initial strategy and make adjustments as market conditions change.

8. Banks should keep good records and thier eyes on the KPI’s to win the simulation challenge.

3. Individuals in the role of their avatar interact with other Banks to initiate transactions to achieve personal goals.

For bankers, The Ultimate Bank Challenge is an essential opportunity to:

n Discard assumptions and go back to the fundamentals of banking

n Experiment with strategy execution

n Play a role which is distant from the usual job/function

n Exercise competitive nature and creative instincts

n Communicate, negotiate and influence