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(mintel, 2002) Current Account Switching Among Students In Order To Study The ...

(Mintel, 2002)
Current Account Switching Among Students
In order to study the behaviour of students the segment of 16-24 years has been referred to. Annexure 3 shows that the youth are the most active switchers of their current account providing banks. This instability in loyalty is largely due to changing needs of a fast growing individual. For example, just before the beginning of a new academic session at Universities, banks offer attractive deals for freshers. The Natwest Bank for instance offered a free rail pass and some cash back incentives for opening a student account with them. Needs change again when students leave universities and enter work. By the time they start work, that bank may no longer meet all of their needs, either in terms of the product or more likely branch location. (Mintel, 2002)
Future Potential Switchers
The market segments seem to be relatively stable for the financial institutions. Annexure 4 suggests that the current trends in defection and switching of banks shall continue to prevail in future. The consumer behaviour among the students and young professionals (people in the age group of 16-34) is not likely to change and it is these consumers who shall display greatest tendency in switching their banks.( See Annexure 5) There might be a slight increase in the tendency of the aged to switch their banks. This highlights the need for banks to raise the standard of the services offered. E.g. shorter queues would perhaps increase satisfaction among the old who cannot wait for long. Waiting for their turn raises the level of dissatisfaction among consumers (especially the aged ones) and annexure 6 clearly highlights that the 38% of dissatisfied customers (i.e. 12% of total; see annexure 1) would probably switch their current account providers.
The young and the old
Essentially, it is the young who change their banks more often and would probably continue to do so in the present circumstances. When dissatisfied, again, it is the young and the old who would readily switch their banks, mostly because the others (25-54years) have too many issues linked to their current account and are perhaps too busy to take up the trouble that comes attached with the idea of changing their bank.
ANNEXURES
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