Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Student Finance - UK - May 2017

“Students can be a demanding group. Young, educated and tech-savvy students want engaging online and mobile banking services. The innovative platforms offered by digital challengers are therefore a threat to major banks with less interactive services. High street banks need to ensure that they focus efforts to improve in this area, as well as continuing to offer popular perks.”
– Rich Shepherd, Senior Financial Services Analyst

This report examines the following issues:

  • Students need to be educated about the positive uses of credit
  • Offering more useful apps will produce more financially-literate customers
  • Open Banking: a threat to the student banking model?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Report coverage
      • Executive Summary

          • The market
            • The student population returned to growth in 2015/16
              • Figure 1: Size of total student population, and first-year student population, undergraduate and postgraduate, 2005/06-2015/16
            • Companies and brands
              • Santander leads the current account market among students
                • Figure 2: Main current account provider, March 2017
              • The consumer
                • Ownership of credit cards and home insurance is low among students
                  • Figure 3: Financial products ownership, March 2017
                • Two thirds of students have a specialist account
                  • Figure 4: Type of current account owned, March 2017
                • Free overdrafts and digital channels are key
                  • Figure 5: Features looked for when choosing a student or graduate account, March 2017
                • Students are averse to using credit …
                  • Figure 6: Attitudes towards credit and money management, March 2017
                • … and exhibit responsible traits in financial management
                  • Figure 7: Financial activity and concerns, March 2017
                • What we think
                • Issues and Insights

                  • Students need to be educated about the positive uses of credit
                    • The facts
                      • The implications
                        • Offering more useful apps will produce more financially-literate customers
                          • The facts
                            • The implications
                              • Open Banking: a threat to the student banking model?
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • The student population returned to growth in 2015/16
                                      • Tuition fees are set for further rises, while grants have been abolished
                                        • Students are fairly comfortable with their current finances and confident for the future
                                        • The British Student

                                          • Around a million new students start university every year
                                            • Figure 8: Size of total student population, and first-year student population, undergraduate and postgraduate, 2005/06-2015/16
                                          • Undergraduates make up three quarters of the student population
                                            • Figure 9: Student population, by level of study, 2015/16
                                          • Part-time study has fallen dramatically since 2009
                                            • Figure 10: First-year student population, by mode of study, undergraduate and postgraduate, 2005/06-2015/16
                                        • The Student Finance Environment

                                          • Tuition fees to rise to £9,250 a year in September 2017
                                            • Maintenance grants have been replaced by a means-tested loan
                                                • Figure 11: Maintenance loan entitlement for full-time undergraduate students, 2017/18
                                              • 43% work around their studies
                                                • Figure 12: Student employment, March 2017
                                              • 80% of students live away from their parents during term-time
                                                • Figure 13: Term-time accommodation, March 2017
                                                • Figure 14: Index of private housing rental prices, January 2011-March 2017
                                              • Student accounts can set up long-term customer/bank relationships
                                                • Figure 15: Current account tenure, May 2016
                                            • Student Financial Outlook

                                              • Most students feel pretty good about their finances
                                                • Figure 16: Current financial situation, April 2017
                                              • There has been little change in financial wellbeing over the last year
                                                • Figure 17: Current financial situation compared to a year ago, April 2017
                                              • Students are generally a confident group
                                                • Figure 18: Financial confidence, April 2017
                                            • Companies and Brands – What You Need to Know

                                              • Providers compete on overdrafts and other perks …
                                                • … but innovation in digital channels comes mostly from new challengers
                                                  • Santander leads the current account market among students
                                                  • Competitive Strategies

                                                    • Overdrafts are the main point of comparison between providers …
                                                      • … but non-financial perks can be more enticing
                                                        • Premiumisation can raise revenues but is unlikely to have mass appeal
                                                          • Digital disruptors
                                                          • Main Current Account Provider

                                                            • Santander leads the current account market among students …
                                                              • Figure 19: Main current account provider, March 2017
                                                            • … driven by an impressive hold on the student account market
                                                              • Figure 20: Main current account provider, by type of current account owned, March 2017
                                                          • The Consumer – What You Need to Know

                                                            • Ownership of credit cards and home insurance is low among students
                                                              • Two thirds of students have a specialist account
                                                                • Free overdrafts and digital channels are key
                                                                  • Students are averse to using credit …
                                                                    • … and exhibit responsible traits in financial management
                                                                    • Financial Product Ownership

                                                                      • Only a fifth of students have a credit card
                                                                          • Figure 21: Financial products ownership, March 2017
                                                                        • Ownership, or awareness, of home insurance is low
                                                                            • Figure 22: Ownership of home insurance, by residential situation during term time, March 2017
                                                                          • ISAs become more common as students prepare to graduate
                                                                            • Figure 23: Ownership of savings accounts and ISAs, by year of study, March 2017
                                                                          • Most students only have one or two financial products
                                                                            • Figure 24: Number of financial products currently owned, March 2017
                                                                            • Figure 25: Financial products ownership, by number of financial products currently owned, March 2017
                                                                        • Penetration of Student Current Accounts

                                                                          • Two thirds of students have a specialist account …
                                                                            • Figure 26: Type of current account owned, March 2017
                                                                          • … but first-years can be slow to switch
                                                                            • Figure 27: Type of current account owned, by year of study, March 2017
                                                                          • Most students only have one account
                                                                            • Figure 28: Number of types of current account owned, March 2017
                                                                        • Desirable Account Features

                                                                          • Digital features are highly regarded by students
                                                                            • Figure 29: Features looked for when choosing a student or graduate account, March 2017
                                                                          • Student account holders would rather have a free overdraft than a large one
                                                                            • Non-financial perks are more popular than financial offers …
                                                                              • ... and are key to Santander and NatWest
                                                                                • Figure 30: Features looked for when choosing a student or graduate account, by main current account provider, March 2017
                                                                            • Attitudes towards Credit and Money Management

                                                                              • Students are averse to using credit
                                                                                • Figure 31: Attitudes towards credit and money management, March 2017
                                                                              • Budgeting can be problematic
                                                                                • 45% consider student loans to be ‘real’ debt
                                                                                • Financial Activity and Concerns

                                                                                  • Almost all check their balance regularly …
                                                                                    • Figure 32: Financial activity and concerns, March 2017
                                                                                  • … but they could still be missing out
                                                                                    • Lenders need to carefully introduce the idea of responsible borrowing
                                                                                      • Figure 33: Financial activity and concerns, by year of study, March 2017
                                                                                    • Almost half plan to save for retirement immediately
                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                        • Abbreviations
                                                                                          • Consumer research methodology

                                                                                          Companies Covered

                                                                                          To learn more about the companies covered in this report please contact us.

                                                                                          Student Finance - UK - May 2017

                                                                                          US $2,940.64 (Excl.Tax)