Investigation into factors that influence students’ choice of retail bank in UK
Investigation into factors that influence students’ choice of retail bank in UK
Rationale
Retail banks have suffered depression caused by low profitability growth and high competitive intensity, however, there is a huge potential in student market (Thwaites and Vere, 2010: 133). It is estimated that the average of students’ debt was £10000 in 2002 with an increase of £6700 from 1999 in UK (Tank and Tyler, 2005:152).Also in United States, student loan market expanded from less than $5 billion in 2001 to over $20 billion in 2008 (CFPB,2012). Therefore, it is essential to bankers to obtain information about the student buyer behavior as most students are predicted to hold a current account which would benefit the retail banks for profitability increase. Several studies have showed that the criteria for youth to choose the bank are convenient location and fast reception services (Lewis and Bingham, 1991: 3; Thwaites and Vere, 2010: 134). Besides these variables, this paper will focus on some special student packages provided by alternative banks and the emergency of technology such as mobile banking, electronic banking, credit cards and home banking.
This research is beneficial for retail bank planning department manager who are willing to expand student market, as they need to understand and develop student buyer behavior in the context of variable banking services. Retail banks have to occupy a large market share of student consumers to ensure their profitability because the share of student market would facilitate the cross-selling which consists of a large range of financial products (Tank and Tyler, 2005:152). This research will explore the students’ attitude towards the current account provider among a large number of variables, the process of students making decision and the standard which influence students’ choices. The research will answer the following questions:
1. What is the process when students make their decisions?
2. What are the bank
Rationale
Retail banks have suffered depression caused by low profitability growth and high competitive intensity, however, there is a huge potential in student market (Thwaites and Vere, 2010: 133). It is estimated that the average of students’ debt was £10000 in 2002 with an increase of £6700 from 1999 in UK (Tank and Tyler, 2005:152).Also in United States, student loan market expanded from less than $5 billion in 2001 to over $20 billion in 2008 (CFPB,2012). Therefore, it is essential to bankers to obtain information about the student buyer behavior as most students are predicted to hold a current account which would benefit the retail banks for profitability increase. Several studies have showed that the criteria for youth to choose the bank are convenient location and fast reception services (Lewis and Bingham, 1991: 3; Thwaites and Vere, 2010: 134). Besides these variables, this paper will focus on some special student packages provided by alternative banks and the emergency of technology such as mobile banking, electronic banking, credit cards and home banking.
This research is beneficial for retail bank planning department manager who are willing to expand student market, as they need to understand and develop student buyer behavior in the context of variable banking services. Retail banks have to occupy a large market share of student consumers to ensure their profitability because the share of student market would facilitate the cross-selling which consists of a large range of financial products (Tank and Tyler, 2005:152). This research will explore the students’ attitude towards the current account provider among a large number of variables, the process of students making decision and the standard which influence students’ choices. The research will answer the following questions:
1. What is the process when students make their decisions?
2. What are the bank
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