Retail Banking: Banking Services for Individual Customers

Retail Banking: Banking services for individual customers

The priorities that each individual has for their bank are different. Some important aspects which people focus on when they are choosing their bank are; the availability of low cost loans, favourable interest rates, banking fees, types of mortgage available, ease of access and general user friendliness. These are a few of the main aspects with which retail banks try to compete for business against each other. How people prioritise the different offers available to them will depend on a number of factors such demographics, earnings and other socioeconomic factors. Hence for the purposes of this paper four of Ireland's retail banks will be examined from a third level students' perspective. The banks chosen were, AIB, BOI, Permanent TSB and Ulster Bank. Having examined whether any of these banks fulfil the needs of a third level student a comparison will then follow between Irish and foreign retail banking. Finally a commentary on where the future of retail banking lies will follow.

A priority for many students looking to open a bank account in this country will be whether they can obtain student banking. Of the four banks that were studied three of them have student offers and are very keen to have a solid foot hold in this area of the market. The bank which doesn't offer student banking is Permanent TSB. However it was thought that even though they do not have any specific student offers that they might be keen to have some business from this are of the market. However several phone calls were made asking if they could offer anything to students or graduates, but their answer was unanimously that one should try Bank of Ireland or AIB. The other three banks all offer competitive student offers. Hence once the banks which offer student banking are found, the next priorities for student are aspects such as free banking, low cost loans, and the ease with which one can deal with the bank. All three banks have easily locatable web sites of which the Bank of Ireland one was thought to be the easiest to navigate around. The three banks also offer online banking. They also offer favourable rates on ceredit cards and loans to students. Interest free loans are a very enticing factor for students as are the offers of free banking which is offered by all three banks. The option of graduate banking is one which would appeal to forward thinking students. This is where new graduates do not have to immediately have to change their accounts to regular accounts but rather gives them a chance to find their feet. BOI, AIB and Ulster Bank offer graduate bank accounts for new graduates (up to two years). The student packages offered by the three afore mentioned banks are all very similar, and they are try to offer other non banking perks to attract business. For the past five years AIB have probably offered the best extra perks ranging from free mobile phones to substantial amounts of phone credit, with Ulster bank offering the least favourable offers. Opening hours are another wa in which one might decide to choose their bank. The general opening hours offered by the 4 banks examined are 10am - 4pm. However there is also late opening with most banks one night a week, however this day is not regular around the country which could cause annoyance to many customers looking to conduct banking business when they are not in their home town. Also some of the AIB and BOI branches open a half an hour late on certain days of the week to facilitate staff training, which again could scupper ones plans. Overall from a student perspective it seems that the package that is on offer from AIB is the most enticing, however it does not come without its catches, the biggest of these is the mc2 Master Card. This is the credit card on offer to students. AIB class this card as a 'funky' new design of credit card but have also admitted on their website that: "Some ATMs, vending machines and POS devices may not have the technology to accept this Card and may reject or retain it. This includes some cinema, train and car park ticketing machines." This failing can cause considerable annoyance and embarrassment, however AIB have obviously decided to come down on the side of the aesthetics of the new technology and believe that this 'funky' design will appeal to students irrespective of its flaws, hence mirroring the perceived attitudes of the demographic which they are targeting. It is also often a priority for people to have their money with a bank which is well established and is in what is thought to be a safe financial postion, which from an external point of view all four of the banks can boast.

Irish