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RECOMMENDED ACTION
Provide comments to Paul Gough for the COPS and BOR coversheets.
AGENDA ITEM: 4.A.1
DATE: February 23, 2012
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SUBJECT: New Program – NSU, MS in Banking & Financial Services
Northern State University has submitted a proposal for a Master of Science in Banking and Financial Services. The program would provide professional development people in the banking industry. The Board approved an intent to plan at the 2011 March/April meeting.
NSU requests authorization to deliver the degree by distance technology. The University does not request new state resources or new student fees to fund the program. Funding will come from self-support tuition and redirection of existing resources.
The proposed program supports the system strategic goals (Policy 1:21). • Expand graduate education
• Workforce development by offering online programs
NSU has authority for Banking & Financial Services certificates, a minor, an associate degree, and bachelor’s degree major.
BHSU, DSU, and USD offer Master of Business Administration degrees.
South Dakota Board of Regents New Graduate Degree Program
University: Northern State University
Proposed Graduate Program: Banking and Financial Services
Degree: Master of Science
Existing or New Degree(s): Existing
Intended Date of Implementation (term): Fall 2012
Proposed CIP code: 520803
University Department School of Business
University Division School of Business: Department of Economics,
Finance, and Banking
University Approval
To the Board and the Executive Director: I certify that I have read this proposal, that I believe it to be accurate, and that it has been evaluated and approved as provided by university policy.
President of the University Date
After approval by the President, a signed copy of the proposal should be transmitted to the Executive Director. Only after Executive Director review should the proposal be posted on the university web site and the Board staff and the other universities notified of the URL.
1. What are the purposes of the proposed program?
Northern State University (NSU) requests approval for a Master of Science in Banking and Financial Services. The degree would expand NSU’s curriculum to better meet the workforce needs of the banking and financial services industry in South Dakota and the surrounding states. The degree will increase opportunities for students who are interested in careers in banking and financial services.
U.S. Senator Tim Johnson, in a recent article1, stated “South Dakota is fortunate to have excellent public colleges. Not only do our universities provide students with a well-rounded education, they also help drive our economy for years to come by providing our local businesses with highly trained employees. Northern State University (NSU) in Aberdeen is no exception, which is why I created a partnership between its Banking and Financial Services Program and the Senate Banking Committee when I became Chairman at the beginning of the 112th Congress.” Senator Johnson went on to say, “In South Dakota, the financial services industry is vital to the state’s economy. More than 28,000 private sector jobs are fueled by this sector.”
1
Source: Senator Tim Johnson, (2012, January/February issue). Northern State, Banking Committee Partner to Help Students Prepare for Careers. Progress Magazine, p. 28.
Similarly, the South Dakota Division of Banking2 stated that “In the last ten years, the total assets of South Dakota state chartered banks that the South Dakota Division of Banking regulates have more than doubled. We see both a demand and need for quality educated personnel to manage and service the growing asset base of our state chartered banks.” In 2010, 28,708 people were employed in “financial activities” positions in South Dakota in 2010, making up 7.1% of South Dakota’s total employment3. The table below provides additional data on the banking industry in South Dakota.
Table 1
State Banking Performance Summary State Charter Commercial Banks – South Dakota
(dollar figures in millions)
Sept. 30, 2011 Sept. 30, 2001 Dec. 31, 1994
Total Assets 18,470 8,702 5,585
Source: Call Report and Thrift Financial Report, prepared by the FDIC-Division of Insurance
and Research
The University requests authorization to deliver the program in an online format (self-support), supplemented by a capstone course delivered in a hybrid mode. Online delivery would allow bankers across the state to earn a degree without commuting or relocating to Aberdeen. The University does not request new state resources or new facilities to support the program. The program would be supported with self-support tuition and redirection of existing resources. The proposed program supports the Board of Regents strategic goals (Policy 1:21):
• Economic Development & Quality of Life: Contributes to workforce development & quality of life by expanding academic programs to meet our future workforce needs, offering off-campus and online programs
A Master of Science in Banking and Financial Services will prepare students for the intense competition they will be facing upon graduation and will provide current banking and financial services professionals the skills required for advancement. Roger Stromberg, with the Conference of State Bank Supervisors, agrees: “The financial crisis and the resulting ‘great recession’ have reminded us that fundamentals in banking matter. We must build an industry which is led by bankers who understand how to manage risk through the economic cycle. We welcome your work in this area.”4
Expected Workforce Demand in South Dakota
According to the Labor Market Information Center at the South Dakota Department of Labor and Regulation, the employment projections for banking and financial services occupations in South
2 Source: Deputy Director John Crompton and Director Bret Afdahl, South Dakota Division of Banking, Email Exchange, January 13, 2012.
3
Source: Bureau of Labor Statistics (Haver Analytics) created 3/24/2011 11:05:48 AM
Dakota are predicted to increase by the year 2018 (see Table 2). Many of these occupations do not require a graduate degree. The advantage that the master’s degree in Banking and Financial Services will provide is increased opportunities for employees to advance in their careers and move into positions of higher authority and responsibility.
Table 2
South Dakota Employment Estimates and Projections, Banking and Financial Support Services Occupations, 2008-2018
SOC*
Code Occupational Title
2008 Base Number of Jobs 2018 Projected Number of
Jobs Change Actual Change Percent
Average Annual Demand for
Workers
11-3031 Financial Managers 855 890 35 4.1% 19
13-1041 Compliance Officers, except Ag, Construction, Health & Safety, Transportation
940 1,125 185 19.7% 28
13-2031 Budget Analysts 125 130 5 4.0% 3
13-2041 Credit Analysts 435 475 40 9.2% 12
13-2051 Financial Analysts 570 635 65 11.4% 17
13-2052 Personal Financial Advisors 215 275 60 27.9% 8
13-2053 Insurance Underwriters 225 250 25 11.1% 9
13-2061 Financial Examiners 95 120 25 26.3% 5
41-3031 Securities, Commodities &
Financial Serv. Sales Agents 770 790 20 2.6% 26
*Standard Occupational Classification, U.S. Bureau of Labor Statistics: http://www.bls.gov/soc/socguide.htm Source: Labor Market Information Center, SD Department of Labor and Regulation, November 2010: http://dol.sd.gov/lmic/menu_projections.aspx#occupations accessed December 27, 2010.
Northern examined programs offered by other universities to determine whether graduates have obtained positions:
• Michigan State University offers a Finance MBA with a specialization in banking and financial institutions. Just over 100 students enroll in their full-time MBA programs each fall. Last fall, as a result of the recession, their placement rate dropped to 74%. According to Betsey Voorhees, Associate Director MBA Career Services at Michigan State University in FY11, “As for employment rates, our final employment rate for the full time program last year was 74%. In a typical economy we range around 90-95%.” The average annual salary in the area of finance is $91,701, although average salary for graduates with the specialization in banking and financial institutions was not available.5
• Dr. James Bexley, Smith-Hutson Endowed Chair of Banking at Sam Houston University, stated that many prospective students are drawn to the specialization of the banking degree as well as the institutions and agencies who hire those graduates. To that end, Sam Houston University has a 95% placement rate for their undergraduate and master’s degree graduates.6
5 Source: http://broad.msu.edu/mba/fulltime/profile accessed September 24, 2010; Betsey Voorhees, Personal Communication, February 25, 2010; and http://broad.msu.edu/mba/fulltime/careers accessed September 24, 2010. 6
Source: Dr. James Bexley, Smith-Hutson Endowed Chair of Banking at Sam Houston University, Personal Communication, September 9, 2010.
• Suffolk University (Massachusetts) offers a Master of Science in Financial Services and Banking (MSFSB). More than 94% of recent graduates are employed or continuing their education. The annual enrollment of all graduate programs is 1,200 students.7
• University of Glasgow (Scotland) offers a Master of Science in Banking and Financial Services. Glasgow has a rate of 96% for postgraduates that are either employed or continuing their education.8
The proposed program also responds to concerns identified by bankers in North Dakota and South Dakota, who have indicated that a number of banking executives will be retiring over the next few years, and the need for qualified individuals to fill those vacancies. Timothy Karsky, former Director of the North Dakota Division of Banking, stated, “There are many North Dakota institutions that will be filling voids in their management team, and I am very optimistic with this program that it will aid these institutions in fulfilling these positions.”9 Similarly, Roger Novotny, former Director of the South Dakota Division of Banking, stated, “The need for advanced degree graduates will also always be present in the private sector simply because of the continuing need for future leaders in the industry that will be caused by the changing age demographics in the financial services sector.”10 Mr. Novotny also stated that when opportunities decrease in one area of banking, they increase in another, such as regulation and compliance, which is a critical area in today’s economy.
Evidence of Student Demand for the Program
The Gramm-Leach-Bliley Act of 1999 permitted affiliations among financial services companies, including banks, securities firms, and insurance companies.11 The changing marketplace that resulted from the Act has created job opportunities for professionals with very different academic needs.12 Kim Bowman, a Banking & Financial Services graduate who served as a bank Internal Auditor after completing her degree and is now the Benefits Administrator at an area bank, agrees. “The Masters in Banking and Financial Services at Northern State University…will allow me, along with others like me, to continue in my current career while pursuing this masters program in order to expand my knowledge in this fast-changing industry.”13
Timothy Karsky, North Dakota’s former Banking Commissioner, feels the degree would provide opportunities for recent graduates: “As a regulator for over 30 years, I believe the key to any success in any financial institution is the quality and education of the management team. Not only will this program benefit recent graduates that want to expand their level of expertise in
7 Source: http://www.studentsreview.com/MA/SU.html and http://www.suffolk.edu/business/1196.html accessed September 23, 2010.
8 Source:http://www.gla.ac.uk/about/facts/employability/ accessed September 24, 2010. 9
Source: Timothy Karsky, former Director, South Dakota Division of Banking, Personal Communication, August 24, 2010.
10 Source: Roger Novotny, former Director, South Dakota Division of Banking, Personal Communication, October 12, 2010.
11
Source: http://law.jrank.org/pages/7165/Glass-Steagall-Act.html accessed January 21, 2010. 12
Source: http://www.ursinus.edu/NetCommunity/Page.aspx?pid=2455 accessed December 23, 2009. 13 Source: Kim Bowman, NSU graduate and bank employee, Personal Communication, August 3, 2010.
banking and financial services, but will also provide an opportunity to enhance the educational development of the individuals already in the banking industry.”14
Jared Vilhauer, a recent Banking & Financial Services graduate employed by the South Dakota Division of Banking, feels that the undergraduate banking program at NSU provides a solid foundation, but a masters degree “presents the opportunity to provide graduates with the tools to make an immediate impact upon graduation” and “due to the diverse range or risks, an undergraduate degree program without specialization struggles to provide graduates with a strong enough understanding of risk mitigation tools and strategies to make an immediate impact. For those students who aspire to have a career in banking, specifically bank management, it will be vital to provide the option of a master’s degree that instills in them the principles necessary to operate in today’s banking environment.”15
Rod Fouberg, Chairman of the Board of Directors for Dacotah Bank, stated that Dacotah Bank has benefited from its relationship with Northern State University and the Banking and Financial Services degree16:
The opportunity to work with and provide internships to baccalaureate students has provided our company with well-prepared full-time employees. Following on the success of the baccalaureate program, we look forward to interacting with Northern State University as the master’s degree develops. We envision opportunities to work with NSU graduate students and faculty as we study and implement the changes needed to effectively compete in our industry.
There may be occasions where the performance and value of selected Dacotah Bank employees will be enhanced by a master’s degree or participation in concentrated summer workshops. If we find that to be the case, we will consider participating in the employee’s tuition or fees. I believe that once value is shown, other organizations in the industry will be willing to assist their employees with tuition costs, as well.
Relationship to University Mission
The statutory mission of Northern State University is provided in SDCL 13-59-1:17
The primary purpose of Northern State University, at Aberdeen in Brown County, and Black Hills State University, at Spearfish in Lawrence County, is the preparation of elementary and secondary teachers, and a secondary purpose is to offer preprofessional, one-year and two-year terminal and junior college programs. Four-year degrees other than in education and graduate work may be authorized by the Board of Regents.
14
Source: Timothy Karsky, former North Dakota Banking Commissioner, Personal Communication, August 24, 2010.
15 Source: Jared Vilhauer, NSU Graduate and SD Division of Banking employee, Personal Communication, April 6, 2010.
16
Source: Rod Fouberg, Chairman of Board for Dacotah Bank, Personal Communication, December 7, 2010. 17
Source: http://legis.state.sd.us/statutes/DisplayStatute.aspx?Statute=13-59-1&Type=Statute accessed October 18, 2010.
Board Policy 1:10:6 Northern State University Mission Statement provides degrees authorized:18
A. Undergraduate Programs
Associate degree programs in arts and sciences, business, education, and fine arts. Baccalaureate degree programs in arts and sciences, business, education, and fine arts.
B. Graduate Programs
Masters degrees in education and E-learning.
The University offers four graduate degrees:
• M.S.Ed. in Education, three emphases available
• M.S.Ed. in Teaching and Learning, four emphases available • M.S. in E-learning (approved 2002)
• M.S.Ed. in E-learning (approved 2002)
The Board has approved undergraduate banking and financial services programs:
• B.S. in Banking and Financial Services, 2005 December, Minutes, pp. 3499-3500 & 3566-3591. The Board authorized NSU to offer the major in Sioux Falls and by distance delivery. • A.S. in Banking and Financial Services, 2008 June, Minutes, pp. 1491 & 1705-1720. The
Board authorized delivery to Sioux Falls, Pierre, Rapid City, and online.
• Minor in Banking and Financial Services, 2008 June, Minutes, pp. 1491 & 1701-1704. The Board authorized delivery to Sioux Falls, Pierre, Rapid City, and online.
• Intermediate Banking Certificate, 2008 October, Minutes, pp. 2511 & 2996-2997. The Board authorized delivery to University Center in Rapid City, 2009 December, Minutes, pp. 3326 & 3644-3650.
• Executive Banking Certificate, 2008 October, Minutes, pp. 2511 & 2998-3000. The Board authorized delivery to University Center in Rapid City, 2009 December, Minutes, pp. 3326 & 3644-3650.
Northern State University has a long history of producing graduates in its undergraduate business programs. The table below provides the baccalaureate majors in degrees conferred from FY06 to FY10. The proposed Masters degree is open to all business graduates. Those applicants that have earned an undergraduate degree in a field other than business will be required to complete certain undergraduate courses from the business core or comparable graduate-level foundation courses in business, prior to entering the program.
Table 3
Business and Accounting Majors Completed, FY07-FY11
Major FY07 FY08 FY09 FY10 FY11 5-Years
Business 9 6 2 1 0 18 Business Administration 0 3 19 21 12 55 Management 33 26 27 22 21 129 Accounting 2 5 5 5 4 21 Professional Accountancy 19 8 7 10 12 56 Finance 18 16 14 7 10 65
Banking & Financial Services 0 3 13 13 28 57
International Business 6 3 2 5 2 18
Administrative Systems 10 3 4 3 10 30
Management Information
Systems 0 0 0 0 1 1
Marketing 13 14 15 10 7 59
Degrees conferred by the University. Report generated by Regents Information Systems, 2011 September 1.
University Strategic Plan and Priority
Northern State University’s strategic plan is titled 2010 Strategic Planning: Mission Forward. The plan was developed as a collaborative effort among the University’s faculty, staff, and administration. Priority 1 of the strategic plan is to: “Recruit, retain, challenge, and graduate citizens with the highest capacity to enrich their communities through their professional lives and civic engagement.” The Master of Science in Banking and Financial Services is a high priority for Northern because it would support the following objectives of Priority 1:
• Grow graduate student enrollment by 50%.
• Double the number of course offerings delivered in online, alternate schedule, and workshop format.
2. Rationale
A. If a new degree is proposed, what is the rationale?
The Master of Science degree is not new. Northern State University offers an M.S. in E-Learning Technology and Administration.
B. What is the rationale for the curriculum?
Northern worked with professionals in the financial services industry to develop a curriculum that meets the needs of the financial services sector, which will, in turn, provide students with the education and skills needed by top-level executives in the banking and financial services industry. The curriculum includes a core set of courses that will provide the foundation for two areas of specialization: 1) International Banking and 2) Commercial Banking.
In order to be admitted into the program, a student must have either 1) an undergraduate degree in a business field or 2) an undergraduate degree in a non-business area and successful completion of foundation courses in each of the following areas: Accounting, Finance, Business Statistics, Management/Marketing, Economics, and Business Law.
C. Demonstrate that the curriculum is consistent with current national standards.
Complete the tables below and explain any unusual aspects of the proposed curriculum. Very few graduate programs are available in Banking and Financial Services. NSU has examined programs at Sam Houston State University in Texas and Boston University in developing its curriculum. The degree programs offered at these institutions are similar to the one being proposed at NSU, although the proposed program is designed to prepare students for a wider variety of positions in the banking and financial services industry, and therefore offers two areas of specialization.
Northern State University consulted with people from the financial sector as the program was developed. With the rapidly changing requirements in the financial services industry, their feedback has been invaluable to NSU during the development of the proposed curriculum. A comparison between the proposed curriculum and the Boston University curriculum and Sam Houston State University curriculum is provided below.
Comparative of Northern State University Proposed Banking and Financial Services Curriculum and those of Boston University and Sam Houston State University
Core Requirements
Northern State University
27 credit hours Boston University 24 credit hours Sam Houston State University 36 credit hours 1. Accounting for Banking
2. Banking & Financial Markets 3. Communications & Team Dynamics
4. Wealth Management & Planning 5. Marketing of Financial Services 6. Regulation and Compliance 7. Applied Econometrics 8. Enterprise Risk Management 9. Capstone: Strategic Management
1. Corporate Finance 2. Project Management 3. Introduction to Electronic Commerce, Systems, & Web Design 4. International Business, Economics, & Cultures
5. Quantitative & Qualitative Decision Making
6. The Innovation Process:
Developing New Products & Services
Year 1 (18 Credits)
1. Research Writing in Business 2. Techniques of Statistical Analysis 3. Seminar in Commercial Banking 4. Problems in Administrative Finance
5. Accounting for Management 6. Financial Statement & Credit Analysis
Year 2 (18 Credits)
7. Selected Topics in Money, Capital, & Security Markets 8. Services Management & Marketing
9. Seminar in Marketing for Financial Institutions
10. Commercial Bank Lending 11. Seminar in Managerial Economics
12. Project Management
Area of Specialization: International Banking
Northern State University
(9 credits) Boston University Sam Houston State University 1. Cultures & Communication
2. International Economic Theory 3. International Banking
Area of Specialization: Commercial Banking
Northern State University
(9 credits) Boston University Sam Houston State University 1. Examination Process
2. Asset & Liability Management 3. Lending
Students without an undergraduate degree in business will be required to complete foundation courses in order to acquire the knowledge needed to succeed in a business master’s program. The next table compares the foundation requirements for the proposed program with the foundation courses required for the Dakota State University (DSU) and University of South Dakota (USD) Master of Business Administration programs. While the proposed degree is not an MBA, it is a graduate degree in business and students without the courses normally taken as part of an undergraduate business major would not have the background necessary to succeed.
Comparison of courses required
for students without an undergraduate degree in business Comparing NSU’s MS BAFS with USD and DSU MBA programs Proposed NSU* MS BAFS (12 credits) USD MBA (18 credits) DSU MBA (12 credits) ACCT 610 or ACCT 210 & ACCT 211 & BADM 350 Foundations of Accounting and
Business Law ACCT 520
Foundations of Accounting ACCT 610 or ACCT 210 & ACCT 211 & BADM 350 Foundations of Accounting and Business Law BADM 610 or BADM 310 & ECON 201 & ECON 202 Foundations of Economics and Finance BADM 505 Foundations of Finance BADM 610 or BADM 310 & ECON 201 & ECON 202 Foundations of Economics and Finance BADM 620 or BADM 220 Quantitative Procedures for Business BADM 520 Foundations of Calculus & Statistics
BADM 608 or
BADM 220 Business Statistics BADM 525 Foundations of Operations
Management BADM 680 or BADM 360 & BADM 370 Foundations of Management/ Marketing BADM 580 Foundations of Marketing and Organizational Behavior BADM 660 or BADM 360 & BADM 370 Foundations of Business Practice
*Graduate level foundation courses are available from DSU; NSU is willing to accept courses offered within the regental system or offered by other regionally accredited institutions in place of the foundation courses listed above for students who do not have an undergraduate degree in business.
D. Summary of the Degree (modify table as needed)
Master of Science in Banking and Financial Services Credits Percent
Students without an Undergraduate Business Degree
Knowledge Foundation Courses 12 25.00
Required courses, all students (core) 27 56.25
Required option or specialization 9 18.75
Electives
Total required for the degree 48 100.0
Students with an Undergraduate Business Degree
Required courses, all students (core) 27 75.00
Required option or specialization 9 25.00
Electives
Total required for the degree 36 100.0
Prefix & Num Course Title Credits New
Students without an Undergraduate Business Degree
ACCT 610* Foundations of Accounting and Business Law 3 N* BADM 680 Foundations of Management and Marketing 3 N BADM 610* Foundations of Economics and Finance 3 N*
BADM 620 Foundations of Statistics 3 N
*Available from DSU
All Students (Core)
ACCT 710 Accounting for Banking 3 Yes
BFS 710 Banking and Financial Markets 3 Yes
BFS 715 Communication and Team Dynamics 3 Yes
BFS 720 Wealth Management & Planning 3 Yes
BFS 725 Marketing of Financial Services 3 Yes
BFS 730 Regulation and Compliance 3 Yes
BFS 735 Applied Econometrics 3 Yes
BFS 740 Enterprise Risk Management 3 Yes
BFS 785 Capstone: Strategic Management 3 Yes
International Banking Specialization
BFS 762 Cultures and Communication 3 Yes
BFS 765 International Economic Theory 3 Yes
BFS 767 International Banking 3 Yes
Commercial Banking Specialization
BFS 770 Examination Process 3 Yes
BFS 772 Asset and Liability Management 3 Yes
BFS 775 Lending 3 Yes
*Available from DSU
NSU is willing to accept other graduate courses offered within the regental system or offered by other regionally accredited institutions in place of the foundation courses listed above for students who do not have an undergraduate degree in business. The purpose of the foundation courses are to ensure that students have the background knowledge in business needed to succeed in the Banking and Financial Services masters program.
Elective Courses in the Program: List courses that may be taken as electives in the program. Indicate any new courses to be added specifically for the major.
Prefix & Num Course Title
Credit Hours
New (yes, no)
Students select an area of specialization within the Banking and Financial Services program. There are no electives in the program.
3. Student Outcomes & Demonstration of Individual Achievement
A. What specific knowledge and competencies, including technology competencies, will all students demonstrate be able to demonstrate before graduation? The knowledge and competencies should be specific to the program and not routinely expected of all university graduates. Complete Appendix A – Outcomes using the system form. Outcomes discussed below should be the same as those in Appendix A.
Program goals include:
1. Graduates will demonstrate knowledge of accounting, management, marketing, and finance as they specifically apply to banking and financial services.
2. Graduates will demonstrate knowledge of and adherence to the regulatory and legal environment of banking and financial services.
3. Graduates will demonstrate applied knowledge of risk management principles and techniques.
4. Graduates will use analytical, technical, and critical thinking skills to anticipate, identify, analyze and solve problems as they specifically apply to banking and financial services. 5. Graduates will demonstrate an ability and willingness to employ ethical principles and
legal compliance when making banking and financial services decisions. Appendix A shows how courses in the curriculum apply to these goals.
B. What national instruments (examinations) are available to measure individual student achievement in this field?
There are no national exams available in this field. However, as noted in Section C, below, students will be required to complete a comprehensive case study in their capstone course as part of their summative experience. In additional to being evaluated by the professor teaching the capstone course, the case studies will be assessed by industry professionals.
C. How will mastery by individual students be demonstrated? Describe the specific examinations or processes to be used. This is to include external measures.19 What will be the consequences for students who do not demonstrate mastery?
In order to successfully complete the course work, students will be required to demonstrate their mastery of the course materials through the following assessment measures:
• Course examinations • Written assignments • Class discussions • Class projects • Class presentations
In addition, a comprehensive case study will be assigned in the capstone course. The completed cases will be assessed by external evaluators (professionals from the banking and financial services industry). Also, as students complete the program, employer surveys will be used to provide industry feedback on the program.
4. What instructional approaches and technologies will be used to teach courses in the program? This refers to the instructional technologies used to teach courses and NOT the technology applications students are expected to learn.
In order to provide students with the opportunity to complete this degree while building their careers, the courses will be taught in an online format. The Course Management Tool that is used within the regental system (e.g. Desire2Learn) will be utilized for the online courses. Other technologies, such as Elluminate, will be used to enhance class discussions and online office hours. Academically and professionally qualified business leaders will serve as adjuncts for some of the online courses. Similarly, existing faculty will attend a variety of seminars and workshops related to banking and financial services, to ensure they are current on the latest issues related to the financial services sector.
5. Did the University engage any developmental consultants20 to assist with the development of the curriculum? Were any professional or accrediting associations consulted during the development of the curriculum? What were the contributions of the consultants and associations to the development of curriculum? See also section 11 below.
NSU invited a number of leaders from the banking and financial services industry to serve on the committee that developed the proposed curriculum. The committee was made up of faculty from the School of Business and business leaders from the financial services industry throughout the state of South Dakota. This committee played a critical role in putting together the curriculum, while advising on various matters pertaining to the Master’s program. The committee was made up of the following members: Mr. Dick Westra, Dacotah Bank, President/CEO; Ms.
19 What national examination, externally evaluated portfolio or student activity, etc will be used to verify that individuals have attained a high level of competence and identify those who need additional work?
20
Developmental consultants are experts in the discipline are hired by the university to assist with the development of a new program (content, courses, experiences, etc). Universities are encouraged to discuss the selection of developmental consultants with Board staff. See section 11 below.
Cynthia Walsh, US Bank, President; Mr. Bruce Ley, retired bank trust officer; Mr. Bret Afdahl, South Dakota Div. of Banking, Director; Mr. Tim Ahartz, BankWest, Inc., Sr. Vice President/Chief Risk Officer; Dr. Hillar Neumann, NSU Faculty and committee Chairman; Dr. Doug Ohmer, NSU Faculty; Dr. Stan Vinson, NSU Faculty; Dr. Bill Broucek, NSU Dean of the School of Business. Additionally, management in the School of Business has consulted and obtained advice from members of the NSU School of Business Banking and Financial Services Advisory Committee. These individuals provided valuable insights into the needs of industry. This will in turn, provide students with the education and skills needed by top-level executives in the banking and financial services industry.
6. Are students in the program expected to be new to the university, redirected from other programs or both? Complete the table and explain how the estimates were developed.
The program is designed to meet the needs of stakeholders (e.g. employers) in the banking and financial services industry, as well as their current and potential employees, many of whom are interested in furthering their education. The students in this program are expected to be new to the University. NSU does not expect to redirect students from its master’s program in Education. It is anticipated that the majority of the students will have an undergraduate degree in business, although it is expected that some students with undergraduate degrees in non-business disciplines will enroll in this program, as well. The students who do not have the foundation courses in business will be expected to complete the applicable foundation courses before enrolling in the program.
The enrollment projections are based on part-time students who are expected to complete six 3-credit courses per year (2 in fall, 2 in spring, 2 in summer), and will thus be expected to graduate in two years. The enrollment in the initial years of the Master of Banking and Financial Services is projected to grow from approximately 20 students the first year to 25 students by year 4. Allowing for some attrition, the University expects 19 students will graduate after 2 years.
Fiscal Years*
1st 2nd 3rd 4th
Estimates FY13 FY14 FY15 FY16
Students new to the university 20 22 24 25
Students from other university programs
Continuing students (attrition = 1 each cohort) 19 21 23 = Total students in the program (fall) 20 41 45 48 Program credit hours (major courses)** 360 738 810 864
Graduates 19 21 23
* Do not include current fiscal year.
** This is the total number of credit hours generated by students in the program in the required or elective program courses. The same numbers are used in Appendix B – Budget.
7. If program accreditation is available, identify the organization and explain whether accreditation is required or optional, the resources required, and the University’s plans concerning the accreditation of this program.
NSU’s School of Business is in candidacy for accreditation by the Accreditation Council for Business Schools and Programs (ACBSP). New programs are not accredited until they have been approved and students are enrolled. NSU anticipates that the School will be successful in achieving accreditation by ACBSP and plans to apply for accreditation for the M.S. in Banking and Financial Services after it has begun.
No additional costs are projected for expanding the accreditation candidacy to include this program.
8. Does the University request any exceptions to any Board policy for this program? Explain any requests for exceptions to Board Policy. If no exceptions are requested, enter “None.”
None.
9. Program Delivery
A. Does the University request authorization to deliver this entire program at any off-campus locations? If yes, list location(s) and intended start date(s).
No, NSU does not request authorization to deliver the entire program at any off-campus location.
B. Does the University request authorization to deliver this entire program by distance technology? If yes, identify delivery method(s) and intended start date(s).
Yes, NSU requests the authorization to deliver this entire program by distance technology (Internet). The only exception is the summer capstone course, which will be offered as a hybrid course.
C. Include off-campus tuition and site or delivery costs in the next section and in Appendix B. If off-campus or distance delivery authorization is not requested, enter “None.”
The program will be delivered in an online format, funded with self-support revenue. Appendix B addresses the costs and revenue.
10. Costs, Budget and Resources
Explain the amount and source(s) of any one-time and continuing investments in personnel, professional development, release time, time redirected from other assignments, instructional technology & software, other O&M, facilities, etc needed to implement the proposed major. Address off-campus or distance
delivery separately. Complete Appendix B Budget and Resources and briefly summarize.
The program budget is provided in Appendix B. Northern State University does not request new state resources. The University intends to support the program with self-support tuition revenue and redirection of existing faculty.
Two business faculty will be redirected to teach graduate courses in place of undergraduate courses. Larger classrooms will be utilized and class sizes will be increased slightly in the undergraduate courses to accommodate this change without impacting the quality of the educational experience. In addition, professionals with the necessary academic qualifications have expressed interest in teaching in the program as adjunct faculty and will be hired as needed. Revenue that is generated from self-support tuition will be use to pay the adjunct faculty salaries.
11. Board Policy 2:1: “Proposals for new graduate programs shall be evaluated by independent consultants retained by the Board.” Provide the names, telephone numbers, and URLs of professional organizations, accrediting bodies, and journals (editors) who may be able to assist the Board staff with the identification of consultants.
• Sam Houston State University, Executive MBA in Banking and Financial Institutions:
http://www.shsu.edu/~fin_www/emba/
• Boston University, MS specialization in Banking & Financial Services Management:
http://www.bu.edu/online/programs/graduate-degree/master-management/banking-finance-management/index.html
• University of South Carolina, Professional MBA, Banking Track:
http://mooreschool.sc.edu/pmba/programoverview/bankingtrack.aspx
• Suffolk University (Massachusetts), M.S. in Financial Services and Management:
http://www.suffolk.edu/business/8511.html
• Pace University, Financial Management M.S.: http://www.pace.edu/lubin/lubin-academic-programs/graduate-programs/ms-programs/financial-management-ms/
• St. Joseph’s University, M.S. in Financial Services:
http://www.sju.edu/academics/hsb/grad/online/msfs/index.html • American Bankers Association: http://www.aba.com/default.htm
• Independent Community Bankers of America: http://www.icba.org/
• South Dakota Bankers Association: http://www.sdbankers.com/
• Independent Community Bankers of South Dakota: http://www.icbsd.com/
• ABA Stonier Graduate School of Banking: http://www.aba.com/Events/STONIER.htm • Graduate School of Banking at Colorado: http://www.gsbcolorado.org/
• Graduate School of Banking at the University of Wisconsin, Madison: https://www.gsb.org/
• Moore School of Business, University of South Carolina, banking track:
12. Additional Information. Additional information is optional. Use this space for information not requested above. Limit the number and length of additional attachments. Identify with capital letters. Letters of support are not necessary and are rarely included with Board materials. In some cases, response to questions from the Board or the Executive Director may be provided as appendixes to the original proposal. This item may be deleted if it is not used. Admissions Requirements
Admission to the program will require evidence of each of the following: 1) Undergraduate degree in a business field
or
Undergraduate degree in a non-business field and completion of foundation courses in Accounting and Business Law, Finance and Economics, Management and Marketing, and Business Statistics
2) Minimum undergraduate GPA of 2.75 or
GPA of 3.00 or better during last two years of equivalent work in undergraduate studies or
GPA of 3.25 in major area of undergraduate study 3) Minimum GMAT score of 500
or
Minimum GRE score of 800 4) If an International Student:
a) All of the above and
b) Minimum paper-based TOEFL score of 550 or
Minimum computer-based TOEFL score of 213 or
Minimum Internet TOEFL score of 80
Recruitment Plan
Existing resources will be reallocated to cover the cost of promoting this program. Planned recruitment activities include the following:
• Advertising campaigns in the American Bankers Association Banking Journal and other ABA publications, South Dakota Bankers Association magazine, Independent Community Bankers of South Dakota publications, and other industry-related journals
• Listings in International Embassy and Consulate directories • Program brochures
• NSU’s Banking and Financial Services program website • Direct mail in response to student inquiries
• Advertisements in in-flight magazines • Newspaper advertising
Program Management
A School of Business faculty member will be given a quarter release time to serve as program director. Policies and procedures will be administered by the NSU Office of Graduate Programs, with oversight from the program director and dean in terms of admissions eligibility, probation, suspension, readmission, etc. (see below).
• Admissions decisions:
- The Graduate Office will handle the processing of admissions requests, with oversight by the program director; the program director will take ultimate responsibility for the admission of students, with input from the dean and faculty members.
• Probation, suspension, readmission:
- Faculty will notify the dean and program director of potential problems and will provide the dean with a listing of students who have deficiencies; the dean will approve or deny readmission requests, if the need should arise. The Graduate Office will handle the paperwork for probation, suspension, and readmission. • Recruitment plan:
- The program director will handle the details related to the recruitment plan but the dean will oversee recruitment; department chairs and faculty will have input. • Assignment of advisor:
- The dean, with guidance from the department chairs and program director, will assign faculty who teach in the program as advisors to the graduate students; the program director will review student progress and schedules to ensure that students stay on target for graduation; the director will collaborate with the applicable advisor in notifying students of potential problem areas.
• Course schedules:
- The department chairs and faculty will schedule the courses, in collaboration with the dean and program director; this group will collaboratively review the various faculty/class schedules to avoid potential conflicts. The dean and department chairs are ultimately responsible for the class schedules.
Appendix A
M.S. in Banking and Financial Services
Student Learning Outcomes Mapped to Required Core Courses Individual Student Outcomes ACCT
710 BFS 710 BFS 715 BFS 720 BFS 725 BFS 730 BFS 735 BFS 740 BFS 785 Graduates will demonstrate knowledge of
accounting, management, marketing, and finance as they specifically apply to
banking and financial services
X X X X X X
Graduates will demonstrate knowledge of and adherence to the regulatory and legal
environment of banking and financial services
X Graduates will demonstrate applied
knowledge of risk management principles
and techniques X
Graduates will use analytical, technical, and critical thinking skills to anticipate, identify, analyze and solve problems as they specifically apply to banking and
financial services
X X X X X X X X X
Graduates will demonstrate an ability and willingness to employ ethical principles and
legal compliance when making banking and financial services decisions
Northern State University, M.S. in Banking and Financial Services
1. Assumptions 1st 2nd 3rd 4th
Headcount & hours from proposal FY13 FY14 FY15 FY16
Fall headcount* 20 41 45 48
Program FY cr hrs, State-Support 0 0 0 0
Program FY cr hrs, Self-Support 360 738 810 864
* Includes 8 students in foundation courses.
Faculty, Regular FTE See p. 2 1.00 2.00 2.00 2.00
Faculty Salary & Benefits, average See p. 2 $98,253 $98,253 $98,253 $98,253
Faculty, Adjunct - courses See p. 2 0 3 3 3
Faculty, Adjunct - per course See p. 2 $4,293 $4,293 $4,293 $4,293 Other FTE (see next page) See p. 2 0.00 0.00 0.00 0.00 Other Salary & Benefits, average See p. 2 $0 $0 $0 $0
2. Budget
Salary & Benefits
Faculty, Regular $98,253 $196,505 $196,505 $196,505 Faculty, Adjunct $0 $12,879 $12,879 $12,879 Other $0 $0 $0 $0 S&B Subtotal $98,253 $209,384 $209,384 $209,384 Operating Expenses Travel $0 $0 $0 $0 Contractual Services $0 $0 $0 $0
Supplies & materials $0 $0 $0 $0
Capital equipment $0 $0 $0 $0
OE Subtotal $0 $0 $0 $0
Total $98,253 $209,384 $209,384 $209,384
3. Program Resources
Self-support Tuition/Cr Hr, if applicable Graduate $368.00 $368.00 $368.00 $368.00 Self-support tuition revenue [hrs x rate] $132,480 $271,584 $298,080 $317,952 Self-support HEFF/credit hour Graduate $34.65 $34.65 $34.65 $34.65
Revenue to HEFF $12,474 $25,572 $28,067 $29,938
Net self-support tuition revenue $120,006 $246,012 $270,014 $288,014
Discipline fee (if any) $0 $0 $0 $0
University redirections $0 $0 $0 $0
Community/Employer $0 $0 $0 $0
Grants/Other $0 $0 $0 $0
Resources Over (Under) Budget $21,753 $36,628 $60,630 $78,630
Provide a summary of the program costs and resources in the new program proposal. Estimated Salary & Benefits per FTE Faculty Adjuncts Estimated salary (average) - explain below $80,351 $3,951 University's variable benefits rate (see below) 0.14645 0.08645
Variable benefits $11,767 $342
Health insurance/FTE, FY12 $6,135
Average S&B $98,253 $4,293
Explain faculty used to develop the average salary & fiscal year salaries used. Enter amount above. The FY11 salaries of the faculty in the department who will be teaching in this program were averaged.
Explain adjunct faculty costs used in table:
Three (3) courses per year to be taught by adjuncts at $3,951 per course. (This is the current salary paid to NSU adjuncts with a terminal degree.)
Explain other [for example, CSA or exempt] salary & benefits. Enter amount above. No additional staff is needed.
Summarize the operating expenses shown in the table:
No additional operating expenses are anticipated. Travel to conferences, etc. are already part of the institutional budget.
Summarize resources available to support the new program (redirection, grants, etc).
Select full-time faculty will be redirected from undergraduate courses to graduate courses. Adjuncts will be paid with revenue from the self-support tuition in the online courses.
Variable Benefits Rates Self-Support Tuition & HEFF Rates Rate HEFF Use in the table above. Change cells on page 1 use correct rates. FY12 FY12 FY12
Undergraduate $277.00 $22.86 BHSU 14.505%
Graduate $368.00 $34.65 DSU 14.075%
Externally Supported $40.00 NSU 14.645%
SDSM&T 13.915%
SDSU 14.125%
