November 4, 2010 in Blog by Ryan

Survey shows almost half of students would join a student credit union

In the spring we implemented a market research survey to gage the interest among students in student-run financial services. We have yet to fully analyze the data, but we did present some interesting findings to students at our staff meeting last week.

Our survey run over about two weeks received more than 1,000 responses roughly equally balanced between Waterloo students and Laurier students with a few from Conestoga College.

While the details will be important, a vital question is whether students will join our organization as members and customers. When asked, 45% of respondents said that they would be likely to join a student-run credit union.

Another hopeful result was that 21% of respondents reported using financial services from an institution other than from one of Canada’s five largest banks, which shows an openness to alternatives.

Here are more of the results:

Most chosen top-three factors in choosing financial services:
• No transaction fees (70%)
• Online banking (69%)
• Low or no account fees (69%)
• Higher interest rates on savings (52%)
• ATM network (40%)

Reasons for choosing financial services
Convenience, ATMs, parents, no fees, good rates

Ways current service could improve
Better customer service, Online/mobile service, E-mail alerts, Longer hours, No out of network fees, Higher rates on savings, Rewards,

Services respondents would introduce for students
Budgeting support, better rates, no fees, longer hours, more ATMs,

Sample comments on improving financial services for students:
• “I would make banking easier. Customer service is also important. I find that hidden fees can really anger a customer, especially broke students. Scotia has charged me many hidden fees that were never brought to my attention. That is why I am looking to switch.”
• “I would provide better consulting services for students in regards to financial planning.”
• “Student discount . ex 10 & off of everything. Or 10% can be returned back to you at the end of the year.”
• “No fees on email and wire transfers so parents can send money often.”
• “. . . Also I want REAL time banking. It’s a pain in the ass when you’re trying to manage your money and you know there are one or two other transactions that aren’t on there yet. Help with planning your financial use based on who YOU are.”

Among the concerns and suggestions, there aren’t a lot of surprises. The results do, however, show us there is an opportunity for financial services that make sense for students.