Table of Contents
Executive Summary
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- Good news and bad news for colleges
- A more diverse market
- Increasing oversight of financial products offered on campus
- Marketing strategies
- Most students have at least one financial account
- For most students, money equals security
- They know they need to save for retirement, they just don’t know how
- Men are easier to reach than women
- Mobile apps are popular, but primarily to check account balances
- Convenient bank branches are important
- They are confident in their abilities to manage money
- What we think
Issues and Insights
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- What do the changing demographics of college students mean to financial institutions?
- The issues:
- The implications:
- How can financial institutions help students learn to manage credit?
- The Issues:
- The implications:
Trend Application
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- Inspire Trend: Locavore
- Inspire Trend: Immaterial World
- Inspire Trend: Life Hacking
Market Size and Forecast
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- Key points
- The number of Americans aged 18-24 is shrinking
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- Figure 1: Population change, by age group, 2009-19
- Undergraduate enrollment is projected to increase
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- Figure 2: Projected undergraduate enrollment at all postsecondary degree-granting institutions, 2014-22
Market Drivers
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- Key points
- Student debt impacts the way students spend money
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- Figure 3: Student debt as a percentage of total US consumer debt, Q3 2011- Q3 2014
- Increasing oversight of financial products offered on campus
Demographic Profile of College Students
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- Key points
- Changing demographics of college students
- Percentage of female students continues to rise
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- Figure 4: Undergraduate enrollment, by gender, 2004-20
- Growth of Hispanic and Asian students
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- Figure 5: Composition of students enrolled in college, by race/Hispanic origin, 2004-13
- More international students
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- Figure 6: National composition of international students, undergraduate and graduate, 1999/00, 2013/14
Innovations and Innovators
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- Key points
- CashCourse
Marketing Strategies
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- Key points
- Marketing to students
- Wells Fargo
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- Figure 7: Wells Fargo college student financial newsletter, 2015
- PNC Bank
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- Figure 8: PNC Virtual wallet email ad, 2014
- Citizen Bank
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- Figure 9: Citizens Bank online student loan ad, 2014
- Marketing to parents
- Citibank
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- Figure 10: Citibank financial information newsletter, 2014
- UPromise
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- Figure 11: UPromise RewardU® email ad, 2014
- College students and social media
Account Ownership
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- Key points
- Most students have multiple accounts
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- Figure 12: Ownership of financial products, December 2014
- One bank, or many?
- Men are more likely to have financial accounts
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- Figure 13: Ownership of financial products – Any ownership, by gender, December 2014
- Older female students are least likely to have savings accounts at traditional banks
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- Figure 14: Ownership of financial products – Any ownership, by gender and age, December 2014
- Hispanics are less likely to use traditional banks
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- Figure 15: Ownership of financial products – Any ownership, by Hispanic origin, December 2014
- Joint ownership with parents drops at age 21
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- Figure 16: Ownership of financial products – Joint account with my parent(s)/guardian, by age, December 2014
- Do not have
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- Figure 17: Ownership of financial products – I do not have this, by gender, December 2014
Communication Preferences
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- Key points
- Most want less communication, not more
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- Figure 18: Preference for communication from financial institution, December 2014
- An overwhelming preference for email
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- Figure 19: Preferred method of communication, by gender, December 2014
Attitudes toward Money and Investing
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- Key points
- College students have been affected by the recession
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- Figure 20: Attitude toward money and investing – Any agree, by gender, December 2014
- Full-time work affects college students’ attitude toward money
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- Figure 21: Attitude toward money and investing – Any agree, by employment, December 2014
Source of Financial Information
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- Key points
- Most get information from family members
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- Figure 22: Source of financial information, by gender, December 2014
Mobile App Usage
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- Key points
- Device they use
- Most use their phones to bank
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- Figure 23: Use of mobile banking app, by device, December 2015
- What they use them for
- Most use apps to check balances
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- Figure 24: Transactions conducted via mobile app, by gender, December 2014
- Why they don’t use them
- Many students don’t see the need
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- Figure 25: Reasons for not downloading or using a banking mobile app, December 2014
Use of Mobile Payment Services
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- Key points
- Parents are a market, too
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- Figure 26: Use of mobile payment services, by age, December 2015
- PayPal is the leader
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- Figure 27: Mobile payment service used to pay other people, December 2014*
Banking Behavior
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- Key points
- Students open own accounts at age 20
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- Figure 28: Location of checking/savings account, by age, December 2015
- Checking accounts are monitored more closely than savings accounts
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- Figure 29: Account monitoring activity, by age, December 2014
- Devices most used to conduct banking transactions
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- Figure 30: Preferred device for banking transactions, by age, December 2015
Attitudes toward Financial Institutions
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- Key points
- Convenient bank branches are important
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- Figure 31: Attitudes toward financial institutions, by gender, December 2015
- Hispanics offer opportunity for less traditional alternatives
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- Figure 32: Attitudes toward financial institutions – Any agree, by Hispanic origin, December 2014
Attitudes toward Personal Finance
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- Key points
- Students are wary of credit
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- Figure 33: Attitudes toward personal finance – Any agree, by gender, December, 2015
- Importance of budgeting
Involvement in Finances
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- Key points
- Men are more involved in their finances
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- Figure 34: Involvement in finances, by gender, December 2015
Payment of Expenses
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- Key points
- Most college students have some financial responsibility for their expenses
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- Figure 35: Payment of expenses, by gender, December 2015
- Parental support wanes when students reach age 21
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- Figure 36: Payment of expenses, by gender, December 2015
- Hispanic parents are less likely to contribute
Financial Concerns after Graduation
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- Key points
- Most students are concerned about making enough to live on their own
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- Figure 37: Main financial concerns after graduation, December 2014
Plans to Switch Banks
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- Key points
- Most don’t plan to switch
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- Figure 38: Plans to switch banks upon graduation, by gender, by age, December 2014
Cluster Analysis
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- Cluster methodology
- Financially Disconnecteds
- Demographics
- Characteristics
- Opportunity
- Financially Comfortables
- Demographics
- Characteristics
- Opportunity
- Financially Independents
- Demographics
- Characteristics
- Opportunity
- Cluster demographic tables
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- Figure 39: Target cluster, by demographics, December 2014
- Figure 40: Target cluster, by demographics, December 2014 (continued)
- Cluster characteristic tables
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- Figure 41: Target clusters, December 2014
- Figure 42: Ownership of financial products – Any ownership, by target clusters, December 2014
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- Figure 43: Ownership of financial products – In my own name, by target clusters, December 2014
- Figure 44: Ownership of financial products – Joint account with my parent(s)/guardian, by target clusters, December 2014
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- Figure 45: Ownership of Financial Products – Joint account with my spouse/partner, by target clusters, December 2014
- Figure 46: Ownership of financial products – I do not have this, by target clusters, December 2014
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- Figure 47: Preference for communication from financial institution, by target clusters, December 2014
- Figure 48: Preferred method of communication from financial institution, by target clusters, December 2014
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- Figure 49: Attitude toward money and investing – Any agree, by target clusters, December 2014
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- Figure 50: Source of financial information, by target clusters, December 2014
- Figure 51: Use of banking mobile app, by target clusters, December 2014
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- Figure 52: Transactions conducted on mobile app, by target clusters, December 2014
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- Figure 53: Banking behavior, by target clusters (frequencies/counts), December 2014
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- Figure 54: Attitudes toward financial institutions – Any agree, by target clusters, December 2014
- Figure 55: Use of mobile payment service, by target clusters, December 2014
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- Figure 56: Payment of expenses and future banking plans, by target clusters, December 2014
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- Figure 57: Financial concerns after graduation, by target clusters, December 2014
Appendix – Other Useful Consumer Tables
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- Account ownership
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- Figure 58: Ownership of financial products – Any ownership, by employment, December 2014
- In own name
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- Figure 59: Ownership of financial products – In my own name, by gender, December 2014
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- Figure 60: Ownership of financial products – In my own name, by gender and age, December 2014
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- Figure 61: Ownership of financial products – In my own name, by Hispanic origin, December 2014
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- Figure 62: Ownership of financial products – In my own name, by employment, December 2014
- Joint ownership with parents/guardians
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- Figure 63: Ownership of financial products – Joint account with my parent(s)/guardian, by gender, December 2014
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- Figure 64: Ownership of financial products – Joint account with my parent(s)/guardian, by employment, December 2014
- Do not have financial account(s) or product(s)
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- Figure 65: Ownership of financial products – I do not have this, by gender and age, December 2014
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- Figure 66: Ownership of financial products – I do not have this, by Hispanic origin, December 2014
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- Figure 67: Ownership of financial products – I do not have this, by employment, December 2014
- Communication preferences
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- Figure 68: Preference for communication from financial institution, December 2014
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- Figure 69: Preferred method of communication from financial institution, by employment, December 2014
- Attitude toward money and investing
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- Figure 70: Attitude toward money and investing – Any agree, by gender and age, December 2014
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- Figure 71: Attitude toward money and investing – Any agree, by employment, December 2014
- Source of financial information
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- Figure 72: Source of financial information, by gender, December 2014
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- Figure 73: Source of financial information, by gender and age, December 2014
- Use of mobile apps
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- Figure 74: Transactions conducted on mobile app, by gender, December 2014
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- Figure 75: Reasons for not downloading or using a banking mobile app, December 2014
- Banking behavior
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- Figure 76: Banking behavior, by age, December 2014
- Attitudes toward financial institutions
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- Figure 77: Attitudes toward financial institutions – Any agree, by gender, December 2014
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- Figure 78: Attitudes toward financial institutions – Any agree, by age, December 2014
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- Figure 79: Attitudes toward financial institutions – Any agree, by gender and age, December 2014
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- Figure 80: Attitudes toward financial institutions – Any agree, by Hispanic origin, December 2014
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- Figure 81: Attitudes toward financial institutions – Any agree, by employment, December 2014
- Attitudes toward personal finances
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- Figure 82: Attitudes toward personal finances – Any agree, by age, December 2014
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- Figure 83: Attitudes toward personal finances – Any agree, by gender and age, December 2014
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- Figure 84: Attitudes toward personal finances – Any agree, by Hispanic origin, December 2014
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- Figure 85: Attitudes toward personal finances – Any agree, by employment, December 2014
- Involvement with Finances
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- Figure 86: Involvement with finances, by age, December 2014
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- Figure 87: Involvement with finances, by gender and age, December 2014
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- Figure 88: Involvement with finances, by Hispanic origin, December 2014
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- Figure 89: Involvement with finances, by race, December 2014
- Payment of expenses
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- Figure 90: Payment of expenses, by gender and age, December 2014
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- Figure 91: Payment of expenses, by Hispanic origin, December 2014
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- Figure 92: Payment of expenses, by race, December 2014
- Financial concerns after graduation
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- Figure 93: Main financial concerns after graduation, by gender and age, December 2014
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- Figure 94: Financial concerns after graduation, by employment, December 2014
Appendix – Trade Associations
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- American Bankers Association
- Consumer Finance Protection Board (CFPB)
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