Bank and product selection – an Australian student perspective

Abstract

Purpose The purpose of this paper is to investigate and comment on the factors used by Australian students to select their bank and the products and services they utilise, based on responses to an online questionnaire. Design/methodology/approach A mixed-methods approach, incorporating both qualitative and quantitative methods, was used to investigate this research issue. Convenience sampling resulted in 276 completed online responses. Mean ranking and factor analysis methods were employed to identify the key factors used in selecting a bank and frequency analysis used to examine the products and services utilised by students. Findings The key factors used by students to select a bank in Australia were bank competence, recommendations and outside influences, bank costs, returns and services, and finally location. The main bank products and services used by students were automated teller machines (ATMs), savings accounts, internet and telephone banking, and debit cards. Research limitations/implications The use of an online survey which limits the pool of respondents to internet users and, the sample size limits generalisability of the findings. Practical implications Banks can better target and understand the key determinants used by students in selecting a bank and the products and services this group values. This will allow Australian banks to develop programs to better attract and retain student customers. Originality/value Provides insight to and understanding of the determinants used by students to select their bank and the products and services they utilise. Furthermore, this study fills a gap in the literature by focusing on the banking behaviour of Australian students, an important segment of bank customers previously under-researched.