Running a player bank is a complex operation, but we’ve put together this article to help you get started! If this is your first time running a player bank, follow the simple list below to help get you off the ground running.

1.) Set Initial Rates

The first thing you should do is look at your competitor banks and their rates to get a feel for the market, and then go to your settings area, and decide what rates you want to set. These rates can be adjusted at anytime, but customers look more favorably on a bank that has relatively consistent rates.

• Savings Interest - This is the % that an account will gain on it’s average daily balance over 30 RL days. Each day, an interest payment goes out to every savings account at 1/30th the monthly % rate based on that days average account balance. The maximum savings rate allowable is 1%. The minimum rate allow able is .05%.

• Account Opening Minimum - This is the minimum amount of bux needed to open a savings account with your bank. The default is $10,000. The maximum allowed is $100,000. The minimum allowed is $1,000.

• CD Rates - CD rates are how much you pay out on Certificate of Deposits. Certificate Deposits are money the player has guaranteed you can hold onto and use for lending during a certain period of time. Generally the longer the CD period, the better the interest rate:
  (30 Day Min/Max = 0.1%/.75%, 60 Day Min/Max = .15%/2%, 90 Day Min/Max = .25%/2.5%, 120 Day Min/Max = .35%/3%)
  

2.) Begin getting your name out there

Once you’ve set your rates, it’s time to let people know there’s a new bank in town. Use any of the website marketing systems or take to discord and spread the word. In the beginning nearly all of your funding is provided via a loan from the Central Bank that you have to repay, so the sooner you get players taking loans and making deposits, the better!

3.) Begin Reviewing Loans & LOC Requests

Once you have done the first two items, it’s time to begin analyzing loan and line of credit requests. It’s important to review each applicant carefully, because if they do not pay, it’s your business that’s losing money, and the default/bankruptcy process can take time, and may not refund you all of the money you are out depending on the terms of the loan or line of credit. It’s always prudent to make sure…

• The applicants debt to asset ratio is reasonable (In general, 20% or less is a pretty good candidate, 20-40% is moderate, and 50% + is a potentially dangerous investment)

• They are taking out the loan for something that is going to return more value and income to their operation.

• They can afford the payments daily (This means finding a balance of how much they need to lend, the loan term, and the interest rate. You have to both turn a profit and provide a reasonable rate within the system allowed parameters for their credit score to find a winning balance for both parties.)

• If you are unsure or need more information, feel free to reach out to the player in DM. All players are required to be in the discord.

4.) Continue To Balance Expenses, Assets and Income Streams

The way to operate a successful bank is to balance your expenses and incomes, and try to increase your incomes while limiting your expenses. Use your accounting and reporting area to monitor your positions in various categories and keep aiming to maintain a healthy balance. Banks will have unique opportunities for investment, as well as their income streams from lending. They must use these income streams to make a profit and accommodate interest earned from savings & CD’s while maintaining enough cash on hand to cover withdraws.

This has been a very basic overview of getting started as a Player Bank. Please reach out to staff if you have a specific question and we will be happy to assist. We look forward to providing more in depth documentation in the coming months!