The Oklahoma Agricultural Bank Simulation Game (AgBankSim) is an experiential learning tool that has been used with undergraduate students at Oklahoma State University and Louisiana State University and participants at the Oklahoma Bankers Association Intermediate Banking School. Through playing AgBankSim, participants learn key financial, economic, and banking lessons that traditionally were limited to a series of in-person meetings. Because AgBankSim is a software based program, an Internet version was developed which allows participants to play the game virtually. In effect, the classroom borders are expanded, which adds a more “real world” experience with decisions affecting institutions interacting in a wide geographic market. This improves understanding of the complex, competitive environment within which commercial banks operate.
Participants are assigned to a bank management team in a county containing three competing banks, initially with equal market share. Teams make multiple decisions within a time period: interest rates to charge on loans, interest rates to pay on deposits, the number of loan officers to employ and their salaries, salaries for other employees, the advertising budget, the service charge on deposit accounts, and plans for new loans and investments. Participants receive reports on bank performance and changes in market share to use in making decisions for three subsequent time periods. This presentation will highlight features of the Internet Agricultural Bank Simulation game and initial user reactions to it. In addition, we will discuss the benefits of the game in teaching key economic and financial concepts to students and outreach audiences.