Business strategy in student banking Essay Example | Topics and Well Written Essays - 9250 words

Business strategy in student banking - prove ExampleAn otherwise important feature of the student mart is the possibility for above-average profitability. Lewis (1982) suggested that banks understood that it is important to soak up students to open accounts when they begin college, in the expectation that they would stay with the after graduation, and be lucrative, in the long run, for the bank. The thorough reason for this observation is that college student is the section of the population who has the likelihood of earning a larger income than any other section of the population. As stated by Duncan, Smeeding & Rodgers (1992), lone(prenominal) individuals who are studying have a substantially greater probability of rising from the low income strata into the middle class. Specially, as contrasted with non-graduates of similar age group, graduates usually strong more highly paid jobs, achieve a more developing career and thus, grow a need for a greater variety of personal finan cial services as they go by their own life cycle. The skill to build up an existence in the student market by dint of suitable attainment and maintenance strategies is thus expected to have an effect on banks future market share and revenue (Thwaites & Vere, 1995).International students signify as a significant market for financial institutions such as banks. The skill to value, comprehend and deal with the precise needs of this segment section of the population is now a vital market reality (Cicic, Brkic, & Agic, n.d). Bankers can no longer maintain their conventional belief that only business.