BANKING AND FINANCIAL SYSTEMS
Banking & Financial Systems provides members with the opportunity to understand how financial institutions operate and how those operations are important to successful business ownership and management, as well as to personal financial success. This competitive event consists of an objective test and a role play scenario.
Event Overview
Division: High School
Event Type: Team of 1, 2 or 3 members
Event Category: Role Play Event
Event Elements: Objective Test and Role Play
Objective Test Time: 50 minutes
Role Play Time: 20-minute preparation time, 7-minute presentation time
NACE Connections: Career & Self-Development, Communication, Leadership, Professionalism, Teamwork
Equipment Provided by Competitors: Pencil for objective test and for role play prep
Equipment Provided by FBLA: Two notecards for each competitor and secret problem/scenario for role play round
Objective Test & Role Play Competencies
· Concepts and practices
· Basic terminology
· Government regulation of financial services
· Impact of technology on financial services
· Types/differences of various institutions
· Ethics
· Careers in financial services
· Taxation
District
Check with your District leadership for District-specific competition information.
State
Eligibility
· FBLA membership dues are paid by 11:59 pm Eastern Time on December 1 of the current program year.
· Members may compete in an event at the Stat Leadership Conference (SLC) more than once if they have not previously placed in the top 10 of that event at the National Leadership Conference (NLC). If a member places in the top 10 of an event at the NLC, they are no longer eligible to compete in that event.
· Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.
· Members must stay in an official FBLA hotel to be eligible to compete.
· Each district may be represented by participant(s) based on the Florida FBLA scaled quota system found on the Florida FBLA website.
· Each member can only compete in one individual/team event and one chapter event (American Enterprise Project, Community Service Project, Local Chapter Annual Business Report, Partnership with Business Project).
· Each competitor must compete in all parts of an event for award eligibility.
· All members of a team must consist of individuals from the same chapter.
· Competitors cannot be replaced or substituted in between the objective test and role play time.
· If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled.
· Participants must adhere to the Florida FBLA dress code by the Florida Board of Directors or they will not be permitted to participate in the competitive event.
Recognition
· The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 5.
Event Administration
· This event is two rounds: objective test and role play
· Objective Test
o Objective Test Time: 50 minutes
o Objective Test Questions: 100 questions
o This event is an objective test administered at the SLC.
o No reference or study materials may be brought to the testing site.
o Competitors on a team must test individually, starting within minutes of each other. Individual test scores will be averaged for a team score.
· Interactive Role-Play Presentation
o Preparation Time: 20 minutes
o Presentation Time: 7 minutes (one-minute warning)
o Question & Answer: None
o The top 5 scoring teams will advance to the role play final round.
o The finalists will be sequestered before the first performance to receive instructions and time assignments. Twenty (20) minutes before their performance time, individuals will receive the case study. A team entering sequestering after the first performance has begun will be disqualified.
o The role play will be a problem or scenario encountered in the banking or financial business community. The role play will be given to the competitors at the beginning of their assigned preparation time.
o Two notecards will be provided to each competitor and may be used during event preparation and role play presentation. Information may be written on both sides of the notecards. Notecards will be collected following the role play.
o No additional reference materials or props or visuals are allowed.
o If participating as a team of 2 or 3, all team members are expected to actively participate in the role play.
o Role plays are interactive presentations; the judges may ask questions throughout the presentation.
o Competition ethics demand that competitors and audience members do not discuss or reveal the role play until the event has ended.
Scoring
· The team-averaged objective test score determines the top 5 teams advancing to role play round.
· The role play round scores only will be used to determine winners.
· Objective test scores will be used to break a tie.
· Decisions of the judges are final.
Recording of Presentations
· No unauthorized audio or video recording devices will be allowed in any competitive event.
· Participants in the events should be aware FBLA reserves the right to record any presentation for use in study or training materials.
Americans with Disabilities Act (ADA)
· FBLA meets the criteria specified in the Americans with Disabilities Act for all competitors with accommodations submitted through the conference registration system by the registration deadline.
Penalty Points
· Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.
Electronic Devices
o All electronic devices such as cell phones and watches of any type are not to be brought to the testing site.
National
Be sure to see the National guidelines at: https://www.fbla.org/divisions/fbla/fbla-competitive-events/
Study Guide: Test Competencies and Tasks
A. Concepts and Practices
1. Demonstrate effective techniques to gather, communicate, and manage client information.
2. Create and/or complete documents to process information.
3. Utilize available techniques to effectively serve customers.
4. Use account knowledge to perform bookkeeping/accounting functions (including payroll) and execute financial transactions.
5. Analyze financial activities and compile business transaction data to report financial information – balance sheet, income statement, cash flow statement.
6. Understand the importance of audits and regulations.
7. Perform banking operations such as opening and closing teller stations, processing loans, processing deposits and withdrawals, etc.
8. Understand the Federal Reserve System.
9. Understand the role of FDIC.
10. Describe the check clearing system.
11. Possess general knowledge of checking, savings, loans, certificates of deposit, investments, IRAs, customer services, trust services, ATMs, and credit/debit cards.
12. Implement loan procedures from beginning to closure.
13. Maintain records and reports to manage investments, cash, loans, and other banking procedures.
14. Handle customer inquiries and situations such as interpreting business policies.
15. Identify consumer protection provisions of appropriate agencies.
16. Implement safe and secure environment controls to enhance productivity and minimize loss.
17. Practice safety and security procedures such as identifying valid currency, recognizing potential risk customers, and securing cash.
B. Basic Terminology
1. Explain the purposes and components of budgets.
2. Define general accounting terms.
3. Understand banking terms such as check register, savings account, interest, deposits, ATM, bank reconciliation, and withdrawals.
4. Identify the advantages and disadvantages of credit and other credit-related terms such as credit ratings, credit reports, and secured and unsecured credit.
5. Define bankruptcy – types and major causes.
6. Define mandatory and voluntary pay deductions.
7. Define tax terms such as “exemptions”, “dependents”, and “taxable and nontaxable income”.
8. List examples of short- and long-term financial goals.
9. Explain the similarities and differences between leasing and buying and renting versus purchasing.
10. Compare the terms and rates of mortgages, leases, investments, and other financial documents such as insurance.
11. Compare stocks, bonds, and commodities.
12. Define investment terms such as “risk management” and “rate of return”.
13. Identify types of retirement plans.
14. Use insurance terminology to explain insurance risks.
15. Compare term and whole-life insurance and annuities.
16. Identify major characteristics of the basic types of life, health, and disability insurance.
C. Government Regulation of Financial Services
1. Interpret laws and regulations to determine the role of government in the financial industry.
2. Interpret world events to determine the impact of international affairs on the financial industry.
3. Research the regulatory requirements of financial and investment planning and security sales to ensure compliance with codes.
4. Implement internal and external audit procedures to reflect compliance with regulations.
5. Research the regulatory insurance requirement to ensure compliance.
6. Identify, apply, and keep current with laws and regulations that affect financial and accounting practices.
7. Apply federal, state, and local laws, and rules and regulations to guide storage and retention of financial records.
D. Impact of Technology on Financial Services
1. Identify various financial management software packages.
2. Use databases and other computer management tools to manage office records and general information.
3. Produce documents integrating current word processing, database, and spreadsheet files.
4. Create worksheets using spreadsheet commands, functions, and formulas.
5. Study component operation to prevent, diagnose, and solve computer operations problems.
6. Assist customers/clients in maintaining online services.
E. Ethics
1. Identify ethical character traits (honesty, integrity, compassion, respect, responsibility, citizenship, justice) and practice professional conduct and good ethical behavior.
2. Determine ethics and social responsibilities and analyze the effects of unethical practices on business and on consumers.
3. Maintain confidentiality and sensitivity of company information.
4. Exhibit nondiscriminatory behavior.
5. Define common, unfair, and deceptive practices such as bait and switch, identity theft, and fraudulent misrepresentation.
F. Types and Differences of Institutions
1. Identify the various types of financial institutions.
2. Describe the types of services offered by each type of financial institution.
3. Compare the differences in the various types of financial institutions.
4. Describe the role of government in the various types of financial institutions.
5. Identify the various sources and procedures for institutions that offer credit.
G. Careers in Financial Services
1. Determine roles and functions of individuals to perform professional financial service careers.
2. Identify traditional and nontraditional finance-related careers including requirements, salary range, and working conditions.
3. Develop employability skills and meet position requirements to obtain a career in finance.
4. Plan appropriate education activities to achieve licensing and certification requirements.
5. Utilize resources that contribute to professional development (trade journals/periodicals, professional trade organizations, industry sponsored training opportunities, etc.) in financial careers.
H. Taxation
1. Reference the latest tax code to guide tax return preparation and actions.
2. Use tax preparation procedures to determine tax liability and apply tax code professionally and complete basic tax reporting forms.
3. Review income, deductions, and credits to determine current financial position.
4. Examine state and federal laws to identify tax credits.
5. Analyze tax structures and consequences to assist in business decision making.