Re: Inputs needed: the design direction
Posted: Wed Aug 07, 2019 6:23 pm
As for banking, look at it from the perspective of products involved within the business structure.
In order to keep it somewhat simple i would stick to retail banking.
A few ideas:
1) Product channels by type:
a) Plot a bank branch (like shop), then select "sale" or "advertisement". For each sale unit you could select "mortgage loans, short term loans, credit cards, leases" as products sold. Each product would differ by term and credit quality (1y, 5y, 10y, for customers with A, B, C, D, credit ratings). Depending on term and credit rating of product and economic situation the demand would be calculated.
b) Cost of each product would be the borrowing cost for the specific bank, income would be the spread between cost of product and price. Would be interesting if non-performing loans could be tracked and in case of economic downturn the NPL amount would eat into income stream of cash which then would leave debt on books (maybe even with option to write off).
c) Internet Bank, Mobile Bank, Phone Bank, Private Banking - could all be services with execution similar to "online commerce" in Digital DLC. All of these should have their product quality ratings and what not. Revenue streams consisting purely of commissions. Primary cost would be research and development. These services should be provided from separate building "banks HQ" for example.
d) ATMs could be plotted in 1x1 square of land and would have expenses and income. Income could be dependent on variety of ATMs for multiple banks within certain area.
2) Compliance:
a) I think banking in this DLC should be a possible "multi billion dollar" business scenario enabled. To make it challenging it could be interesting to introduce capital requirements to be held. If breached a message similar to when you run out of cash could appear with requirement to increase your financial position. Additionally these requirements could be dependent on economic situation. Risk off sentiment during "recessions" or "stagnation" would lead to central banks increasing capital requirements.
b) Similar to random events mechanics such as factory burning down, the amount of money spent for compliance (anti money laundering) could be correlated with probability of random even "regulatory fine". Regulatory constrains are a large part of banking in these days. So more spending on compliance = smaller probability of random event / fine.
Some of ideas that come off the top of my head.
In order to keep it somewhat simple i would stick to retail banking.
A few ideas:
1) Product channels by type:
a) Plot a bank branch (like shop), then select "sale" or "advertisement". For each sale unit you could select "mortgage loans, short term loans, credit cards, leases" as products sold. Each product would differ by term and credit quality (1y, 5y, 10y, for customers with A, B, C, D, credit ratings). Depending on term and credit rating of product and economic situation the demand would be calculated.
b) Cost of each product would be the borrowing cost for the specific bank, income would be the spread between cost of product and price. Would be interesting if non-performing loans could be tracked and in case of economic downturn the NPL amount would eat into income stream of cash which then would leave debt on books (maybe even with option to write off).
c) Internet Bank, Mobile Bank, Phone Bank, Private Banking - could all be services with execution similar to "online commerce" in Digital DLC. All of these should have their product quality ratings and what not. Revenue streams consisting purely of commissions. Primary cost would be research and development. These services should be provided from separate building "banks HQ" for example.
d) ATMs could be plotted in 1x1 square of land and would have expenses and income. Income could be dependent on variety of ATMs for multiple banks within certain area.
2) Compliance:
a) I think banking in this DLC should be a possible "multi billion dollar" business scenario enabled. To make it challenging it could be interesting to introduce capital requirements to be held. If breached a message similar to when you run out of cash could appear with requirement to increase your financial position. Additionally these requirements could be dependent on economic situation. Risk off sentiment during "recessions" or "stagnation" would lead to central banks increasing capital requirements.
b) Similar to random events mechanics such as factory burning down, the amount of money spent for compliance (anti money laundering) could be correlated with probability of random even "regulatory fine". Regulatory constrains are a large part of banking in these days. So more spending on compliance = smaller probability of random event / fine.
Some of ideas that come off the top of my head.