Students are a potentially lucrative market for banks: there are over 2 million UK-domiciled students in the UK; students comprise a significant proportion of new bank accounts each year; student accounts mark the beginning of significant financial independence for many; university graduates typically have higher employment rates and earning potential than non-graduates. Hence students present an opportunity for NatWest to gain new customers and keep them for life.
However, Barclays holds the largest share of the 18-25 year old market - almost twice as large as NatWest’s share. Younger generations have a higher propensity to switch, are more likely to multi-bank and are increasingly choosing app-only banks for their main bank account. Research reports that more than half of students and recent graduates regret their choice of student bank account. This suggests that the traditional student bank account is not meeting the needs of the current (and future) generation of students and graduates.
The key challenge for NatWest is to understand current student and graduate needs, what motivates and engages them and what their preferences are. This will help NatWest to develop an engaging proposition to attract students and retain them beyond graduation and become their one-stop financial provider.
Participating members
- Prof. Tina Harrison
- Prof. Galina Andreeva
- Prof. Jake Ansell
Partners
