THE YOUTH MARKET FOR FINANCIAL SERVICES
inancial institutions must cater for the differing needs of the youth market, an increasingly important segment of society.
The Youth Market for Financial Services
Barbara JR. Lewis and Graham II. Bingham
International Journal of Bank Marketing, Vol. 9 No. 2, 1991, pp. 3-11 © MCB University Press, 0265-2323
increasing proportion of students* who have delayed earning power and different financial service needs. Of the total 60 per cent are in employment, 21 per cent are students and 11 per cent are out-of-employment. When one considers the "worth" of the youth market to financial service institutions, their disposable income is seen to be low (relative to adults) but their discretionary income and purchasing power are high: banks and building societies see immediate "sales benefits" to be gained from attracting young people as customers and "future revenues" which will be generated from loyal customers. Other relevant environmental trends are: legal — the advent of the Building Societies Act and the Financial Services Act and consequent increasing competition for student and young persons' accounts; technological — relating to operations management, customer services and product development (e.g. ATMs, EFTPoS, home banking); and social and cultural — namely changing attitudes and behaviour across the whole population with regard to acceptance of credit, share ownership, etc.
Within their corporate and marketing strategies, the banks and, more recently, the building societies in the UK have segmented their markets and within the personal-account sector have considered various bases: geographic; demographic; psychographic to include life styles, personality and social class; and behavioural — benefits sought, usage patterns, etc. (see, for example, Reidenbach and Pitts, 1986). With regard to the youth market, the banks and building societies target young people to "catch them early" in the...